Your Homeowner's Mortgage Bill of Rights

Tuesday, October 30, 2012

Despite the recovering economy, many of my constituents are still in danger of losing their homes. There is nothing worse than being in this situation and getting the runaround from your bank. But help is on the way. Recently, I co-chaired a Conference Committee which wrote a new "Homeowners' Bill of Rights" as part of legislation that will go into effect January 1.

  • You have the right to be fully informed of the bank's intent to seek a foreclosure and whether options such as loan modifications are available to you.
  • You have the right to be thoroughly evaluated for these options before a bank starts a foreclosure process. Banks cannot "dual track" with a foreclosure while you are applying for another option.
  • You have the right to appeal if bank denies your loan modification application.
  • You have the right to a continuing single point of contact in dealing with your mortgage.

If you would like to know more about this new law, please go to the Attorney General's webpage at

Beware of Mortgage Modification Scams

A recent alert from the California Department of Corporations and the California Department of Real Estate warned homeowners about "loan modification consultants" who illegally ask for payments in advance and advise avoiding foreclosure by signing your home over to a third party, stopping payments or defaulting on your mortgage.

If you need more information about these scams, please view the Consumer Alert at: