Attorney General Proposes California Homeowner Bill Of Rights

SACRAMENTO (KCBS) – State lawmakers and the Attorney General are looking to make it harder to foreclose on Californians and evict them from their homes.

Calling it the California Homeowner Bill of Rights, Attorney General Kamala Harris on Wednesday announced her sponsorship of six bills that she said are common sense reforms to help homeowners in the state.

KCBS’ Doug Sovern Reports:

“(The goal is) To provide (homeowners) with a system where the rules are clear, where everyone gets a fair shot and where everyone has equal standing,” said Harris.

State Senate President pro Tem Darrell Steinberg said the measures include ending what’s known as “dual tracking.”

“If you’re upside-down on your mortgage and you’re making a good faith effort by going through loan modification, the banks and the lenders shouldn’t be allowed to commence foreclosure proceedings at that same time,” he said. “It’s common sense. It’s dual tracking and it has to stop.”

The bills would also ban “robo-signing” and give tenants 90 days instead of 60 to leave if their landlord loses their home to foreclosure.

Harris said California needs these laws because the national mortgage settlement she’s negotiated with five major lenders will expire after only three years.

That national agreement is expected to net $18 billion of benefits for California homeowners.

The California Bankers Association released a statement Wednesday in response to the legislative proposals. The following is a portion of that statement:

During the past several years we have seen historic efforts by the government, financial services industry and consumer groups to help millions of borrowers stay in their homes. In California, the CBA has worked with the legislature to enact no fewer than four dozen mortgage-related bills that address everything from loan origination to post-foreclosure practices.

While much of the specifics beyond the materials provided during today’s press conference have not been shared with us, we nevertheless are prepared to be a part of the conversation and we welcome that opportunity. We are uncertain, and look forward to understanding, how these solutions, which we understand will apply to all mortgage servicers – banks and nonbanks – will interact with, or conflict with, what has already transpired at the federal level.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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  • TheZip

    You are NOT a homeowner if you have a mortgage. The bank is the owner of the home. If any institution or individual takes on the risk of granting a mortgage or lease to rent property they should have the right to get their property back in their control if individuals fail to meet the terms of the contract they agreed to.

    Millions of people made bad decisions plain and simple. It didn’t take a rocket scientist to see that the prices were over inflated for homes for many years. Being upside down on a mortgage is no excuse to get a handout. Your home is supposed to be where you live. It’s value at any point in time is immaterial. 10 or 15 years from now it will certainly be worth that an individual paid for it. If their principal is reduced today because of their bad choice then it should just as well be increased when the value increases.

    Politicians can make up all the technicalities they want and make up fancy names like Robo Signing. The people getting foreclosed on were plain and simple not making the mortgage payments they agreed to. Doesn’t matter why. The lending institution should have no requirement to take the loss for someone’s failure to fulfill their obligation. Whether your payments are more than you can afford, or you lost a job, or whatever, that was the risk you took over the life of the loan you were granted.

    But this is the handout society we live in today. Irresponsible people are given handouts. Of course the only place those handouts come from with the government involved is the responsible people.

    • msvoner

      You’re full of hooey zipper.
      You buy the home and the bank holds a mortgage on it. If you have equity, any way you look at it you’re still at least a part-owner.
      Just because you don’t believe in utopia doesn’t mean it’s not possible.
      Get that stick out of your butt.

    • Roger Craig


    • Marty

      So you just want the people who were going to lose their homes lose them?

      • TheZip


      • TheZip

        The simple fact is: “IT IS NOT THEIR HOME”.

        It is not their home until they pay of their mortgage. Until then the bank, which has fronted the money to the previous owner or builder is the owner of the home.

      • Roger Craig

        You want to have them for free….

  • YDD

    Zip you need to Zip your lips, because it is apparent that you have diariah of the mouth and consipation of the mind. It is fact that 84% of foreclosures done in 2009-2010, had blatent miscarriages of the Law, did you know that?

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