The Law Offices of Ronald P. Slates, P.C.
A Proffessional Corporation est 1980

The California Homeowner's Bill of Rights and lender options

Hopefully the housing market is finally beginning to rebound from the debacle it has been in since 2007.  However, judging from reports from many different sectors across California, the numbers of foreclosures has probably not decreased as much as many individuals would wish.

The decrease in the number of foreclosures during 2013 may in part be due to legislation rather than actual improvements in the housing sector.  The California Homeowners Bill of Rights took effect on January 1st and it was said to be implemented to provide homeowners additional protections from having their homes foreclosed.  The act may also have led to a slowdown for lenders implementing foreclosure procedures: this only because lenders have been forced to adjust their practices to comply with the new California law.

Federal authorities also have had their say concerning the way foreclosure practices are conducted.  The National Mortgage Settlement was put into place purportedly to provide incentives for lenders to use alternative methods in dealing with homeowners behind on house payments - besides foreclosing upon the home.

This is where commercial collections attorneys can assist.  Commercial collections attorneys are different from business law attorneys that generally work with a variety of partnership and corporate issues.  Commercial collection attorneys' primary clients are banks and lending institutions and the focus is upon the remedying of loans that can potentially go bad.  In particular, commercial collection attorneys advise clients regarding highly regulated or prohibited foreclosure practices.   This, and the ability to actually collect upon commercial judgments, is invaluable for such clients.

Even without all of the laws, there are situations when alternate strategies like loan workouts and other refinancing strategies need to be put into play.    Though lenders do not want the option of home foreclosure taken off of the table under all circumstances, a loan workout is almost always preferable to an actual foreclosure taking place.

Banks should not try to go it alone in today's litigious climate.   With all of the laws surrounding foreclosure procedures, banks cannot afford to have outside parties handling foreclosures that have no familiarity with California or federal laws.  That could result in the lending institution being named a party to a lawsuit.

Source: Source: The Sacramento Bee, "Sacramento County foreclosure notices at their lowest since 2005, report says," by Hudson Sangree, April 24, 2013