California lawmakers pass new foreclosure legislation
Posted on Thursday, July 5, 2012 at 3:10:58 PM
According to The Huffington Post, California lawmakers have recently approved historic legislation that would help homeowners avoid foreclosure and stop aggressive practices by mortgage lenders. This offers California homeowners some of the strongest protection against foreclosure in the nation.
One of the key aspects of the proposed legislation would be eliminating a practice called "dual-tracking." Dual-tracking is when a bank or mortgage lender works with a client to negotiate smaller, more affordable mortgage payments while at the same time pursuing foreclosure. Furthermore, the publication states it would allow lawsuits to be filed when a bank signs foreclosure documents en masse without review, a practice referred to as "robo-signing." This is great news for California homeowners as the state was one of the hardest hit during the housing crash.
"This has been an incredibly long and tortuous process to get the kinds of basic protections that borrowers have long needed throughout this six-year crisis," Paul Leonard, California director of the Center for Responsible Lending in Oakland told the Los Angeles Times.
Anyone who is struggling with making mortgage payments and negotiating lower interest rates should consider residential financing options. These can help homeowners get back on the right track.