More Takeaways From The California Homeowner’s Bill of Rights
Last week we attended the NAHREP conference in Oakland and because they event had so much information we split the post into two parts. Here in part two, we head back to the same panel that highlighted the Homeowner’s Bill of Rights with Stan Wieg (Legislative Advocate for C.A.R.) and Fabian Casarez (Broker/Homeowner Advocate).
Some of the homeowner info that the panel discussed involved the process and trends of loan modifications. Banks now offer more time typically 4-6 months on the front end and less time on the back end, which means that the banks will typically provide more time before starting the foreclosure process but homeowners will typically see fewer scenarios where you see postponement after postponement. Once the bank files an NOD (Notice of Default) the odds that it will foreclose rise.
The panel also discussed that per the recent legal settlements with the state attorney general banks will be forced to allocate 20 billion dollars through principal reduction, loan modifications, etc) California homeowners should benefit from this money although the banks have been known to “cherry pick” about which homeowners and situations they offer funds to.
HAFA 2 And Local California Laws
They also mentioned how HAFA 2 has quietly taken effect (February 1, 2013) which brings slight variations to the previous version including:
One of the more interesting tidbits of info involved banks and local laws. Like most companies, banks outsource many of their employees and that includes short sale negotiators. Ocwen and other banks hire short sale negotiators in other countries. In one instance, the Ocwen negotiator broke CA law when they foreclosed after issuing a short sale approval. In this case, the bank rescinded the foreclosure. The takeaway here is the banks don’t always know local laws and a good short sale agent will.
Don’t ever give up even after a foreclosure.