Errors in Foreclosures

Campaigns

We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Friday, July 23rd, 2010

By Norma Garcia
Just when you thought it couldn’t get any worse, a new study by the California Reinvestment Committee (CRC) found that more than a year since it began, the nation’s primary foreclosure prevention policy, HAMP, is failing California’s homeowners. The culprit, according the CRC findings, is that mortgage servicers are making a lot of mistakes and are not complying with the HAMP rules. The unfortunate result is that homeowners are being foreclosed on while in the middle of applying for loan workouts or trial modifications.
Go to CRC’s site to download the new Chasm Between Words and Deeds VI study: SB 1275 (Leno Steinberg) which will help prevent unnecessary foreclosures in California.
This bill provides rights and remedies for consumers working their way through the foreclosure process and provides that a lender cannot begin the foreclosure process until it has determined whether or not a borrower is eligible for a loan modification. The goal of SB 1275 is to insure that those borrowers who are eligible for loan modifications obtain decisions about their eligibility in a timely manner.

Without SB 1275, Californian’s seeking to take advantage of foreclosure prevention programs are destined for more of the same as what is reported in CRC’s new report. It’s time for the Legislature and the Governor to do something, and SB 1275 is a viable and well crafted solution. As SB 1275’s author Senator Mark Leno recently said, “Clearly the status quo is not sufficient for Californians who are struggling to save their homes and can qualify for a mortgage modification that would spare their families much pain and anguish. SB 1275 is the appropriate solution.” We couldn’t agree more.

Click here for a PDF of SB 1275

Leave a Reply

Your email address will not be published. Required fields are marked *