California’s Homeowner Bill of Rights Summary: What Borrowers Need to Know

The Homeowner Bill of Rights (HBOR) was passed by the California Legislature in 2012 and becomes effective January 1, 2013. It adds new protections to existing laws to help prevent avoidable foreclosures. It requires enhanced notifications so that borrowers will know their rights and how to contact their loan servicer to pursue a loan modification or other relief. It curbs “Dual Tracking” where loan servicers put homeowners on the foreclosure track, even when loan modification applications are under consideration. It facilitates better communication between borrower and loan servicer by requiring loan servicers to provide an accountable, consistent point of contact to help the homeowner through the loan modification and or foreclosure process. HBOR requires lenders to provide proper documentation before they can foreclose, and it gives borrowers tools to enforce their rights