While homeowners will garner greater accountability from lenders, the law doesn't address the potential for irresponsible behavior by homeowners when it comes to filing frivolous lawsuits.
Woodland Hills, CA (PRWEB) July 18, 2012
Gil Priel, Co-founder, Managing Director and Principal of the Peak Corporate Network entities (http://www.peakcorp.com), a leading provider of comprehensive services for ‘Everything Real Estate,’ said today that while the new California Homeowner Bill of Rights Law last week signed by California Governor Jerry Brown is far from perfect, one particular aspect of the law requiring a lender to provide to the borrower one point of contact for foreclosure and/or loan modification will relieve borrowers from getting the run-around.
Many homeowners in California facing foreclosure while seeking a loan modification have been frustrated when they would be communicating with one individual from their lender and all of a sudden be told that another individual should be the one handling documents for the loan modification.
Beginning January 1, 2013, the California Homeowner Bill of Rights will:
•Ban "dual-tracking" (which is when banks pursued foreclosure even though the homeowner was seeking a loan modification)
•Require one lender contact person per customer
•Increase penalties for lender robo-signing (which automatically approves foreclosure without anyone reading documents)
•Let homeowners sue lenders for violations
“The American dream of homeownership has turned into a time-drain nightmare for lenders and borrowers alike thanks to what has up until now been a somewhat murky world of hopes derailed and false promises for those attempting to avoid foreclosure and obtain a loan modification,” said Priel.
Priel noted that while homeowners will garner greater accountability from lenders, the law doesn’t address the potential for irresponsible behavior by homeowners when it comes to filing frivolous lawsuits. “To some degree, frivolous lawsuits will be time-wasting and resources-draining; and heightened lender costs associated with challenging frivolous lawsuits will, unfortunately, likely be passed on to consumers doing business with lenders,” said Priel.
As a leading authority in the real estate industry, The Peak Corporate Network entities provide a full array of comprehensive real estate services nationwide including brokerage services, mortgage financing, loan servicing, escrow services, short sales, foreclosure processing and 1031 exchange. For more information, visit http://www.peakcorp.com
The Peak Corporate Network is a brand represents a group of related separate legal entities, each providing its unique set of real estate services.