California Foreclosure Crisis

UPDATE-June 27, Joint Committee Announces Passage of Homeowner Bill of Rights 4-1


Final Language


 UPDATE-June 21, Homeowner Bill of Rights Language Available:

Homeowner Bill of Rights Draft Language

Summary of Homowner Bill of Rights Language



California, as well as the nation, is in the midst of one of the worst economic crises since the Great Depression. As unemployment rises above 11 percent within the State, more and more homeowners are having difficulty making their mortgage payments. That difficulty is compounded by certain mortgage products that, based on their design, result in a substantial increase in payment after several years. As a result of those and other factors, many homeowners now face payments beyond the level of what they can afford.

The above issues are compounded by a significant decline in property values, which has left many California homeowners owing more on their mortgages than their homes are worth. Regardless of the initial cause of the default on a loan, the resulting foreclosure has significant impacts upon the surrounding home values, community, and for those with a financial interest in the loan itself.

In February 2012 a historic $18 billion multistate settlement was secured for Californians by Attorney General Kamala Harris that will provide substantial relief for California homeowners. 

Seeking to ensure protections for the hundreds-of thousands of Californians still in the foreclosure process, the California State Legislature’s leadership convened a bipartisan conference committee to create permanent and locally enforceable actions that will protect homeowners and hold banks accountable to their California commitments.

The Legislative Conference Committee on the California Foreclosure Crisis, co-chaired by Senator Noreen Evans (D-Santa Rosa) and Assemblyman Mike Eng (D-Monterey Park) will review and propose a comprehensive legislative solution, including the Homeowners Bill of Rights package, to protect homeowners in the mortgage market and help to keep families in their homes and revive the state’s economy.

Senator Evans and Assemblymember Eng hosted a live Internet town hall on the California foreclosure crisis Wednesday, May 16th.


Foreclosure Crisis Questions: Where Can I Get Answers and Help


Neither the Department of Justice (DOJ) nor Legislature can provide legal advice, although both are committed to assisting homeowners in a foreclosure crisis.

If you have a specific question about your loan, call HUD at 800/569-4287 and speak with a counselor.  This is a free service.   More information is also available at

If you believe your lender is not complying with the Mortgage Settlement Agreement recently secured by Attorney General Kamala Harris for California homeowners, please go to the DOJ web site and file a complaint.  Complaints go directly to DOJ investigators. Visit to fill out and submit the complaint form. 

For information on the terms of the Mortgage Settlement Agreement, please review this information: .