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New Laws in CA: Homeowner State Laws 2013

California may have some of the best homeowner state law protection in the country after last week’s introduction of the new legislation the Homeowners Bill of Rights. It was a win for struggling homeowners who praised the new laws in CA attention to lender misconduct over the past few years. The homeowner state laws 2013 won’t take effect until January 1, 2013, however, California’s Attorney General Kamala Harris believes that the Homeowners Bill of Rights will help the 700,000 families that are currently fighting foreclosure or at risk for foreclosure.

New Laws in CA

Nevertheless, as there is with almost every bill-turned-law, the new Homeowners Bill of Rights has its critics. Those who opposed the California mortgage law and many lenders believe that the law does nothing to rectify the underlying problem that too many borrowers are living in homes they can’t afford. The government needs to address the source of the problem, not the symptoms, they argue.

New Laws in CA: Homeowner State Laws 2013

Furthermore, many critics suggest that the Homeowners Bill of Rights could make mortgages and loan modifications more expensive and harder to receive. This only serves to widen the gap between what a borrower can afford and mortgage costs, putting more borrowers at foreclosure risk down the line. Given the new legislation and onus on the banks, why would lenders issue credit to anyone with less than perfect credit history? The law is intended to aid the economy, helping homeowners survive the downturn; however, critics argue that the legislation could have the reverse effect.

Attorney General Harris staunchly disagrees. The law is simply putting transparency and accountability into an existing loan modification system so that homeowners and lenders are playing by the same rules, she said during a NPR interview last week. She argued that this is in fact best for homeowners and the lending institutions; servicing homeowners expeditiously will be a lot easier when everyone is playing by the same rules and has the same information and facts in front of them.

New Laws in CA 2013 Attorney

Truthfully, no one really knows what will happen until the Homeowners Bill of Rights goes into effect. Even the most impassioned proponent of the legislation today doesn’t know to what extent lending institutions will change their behavior next year. And there is still a long way to go in helping homeowners, in good faith, hold on to their homes. For example, the new legislation applies to modifications on primary mortgages only and not on secondary ones, for example. If you are struggling with foreclosure problems, it’s best to speak to a qualified mortgage and foreclosure attorney about the new legislation and how it applies to your situation. McFarlin LLP can help, we offer a free consultation with one of our Real Estate Attorneys to fully explore your options.  Call today: (888) 728-0044.