This week we saw some major developments in Sacramento in regards to the State of California through Governor Brown, will protect mortgage holders from foreclosure and aggressive bank practices such as, home seizures while the homeowner is in the negotiating process to lower the mortgage payments.
Through a pair of Assembly and Senate bills known as AB 278 and SB 900, the state is preparing for some of the toughest restrictions and regulations in the country regarding banking industry practices while dealing with a homeowner experiencing financial hardship.
- Prohibit lenders from "dual tracking," or pursuing a foreclosure even though the homeowner is negotiating to modify the mortgage loan.
- Outlaw "robo-signing," or mortgage servicers' improper or faulty processing of foreclosure documents.
- Allow homeowners and state agencies to sue financial institutions for economic and civil damages, under limited circumstances.
- Require banks and loan servicers to provide a single representative for a borrower to work with, to prevent bureaucratic mazes.
