The housing crisis was created by a huge number of theoretically independent decisions that optimized the short term gain of a very select group of people and companies at the expense of literally the world. Among these ill-conceived decisions were rules and procedures maintained by the banking industry that greatly exacerbated the ongoing problems. Among these are/were policies that separated the functions of loan modifications, short sale negotiations and foreclosure process into separate departments with little or no communication set up between them … and no consistent set of criteria as to how to operate or treat the consumers in distress. Some of that will change with the passage of the Homeowners Bill of Rights. The following is a brief summary of the law taken from the California Assocication of Realtors online newsletter:
California Homeowner Bill of Rights signed into law
California Governor Jerry Brown signed into law yesterday the Homeowner Bill of Rights to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California’s housing market and prevent the other negative effects of foreclosures on families, communities, and the economy. The new law will generally prohibit lenders from engaging in dual tracking, require a single point of contact for borrowers seeking foreclosure prevention alternatives, provide borrowers with certain safeguards during the foreclosure process, and provide borrowers with the right to sue lenders for material violations of this law.
Making sense of the story
Posted on July 13, 2012 at 8:41 am Steve Curtis