Effective January 1, 2013, the Homeowner Bill of Rights aimed at helping Californians who are struggling with the turbulent California housing market, avoid foreclosure where possible and prevent the devastating effects of foreclosures on California communities. The law as written will attempt to prohibit certain lender practices, streamline contact between borrower and lender and also provide borrowers with the right to sue lenders for material violations of the law. The full text of the Homeowner Bill of Rights can be found here under Assembly Bill 278 and Senate Bill 900.
The law’s legal remedies for borrowers include the right to stop or enjoin a trustee’s sale until the lender and/or mortgage servicer has corrected the material violations of the law. Actual monetary damages are recoverable and for intentional and reckless violations, a borrower may recover treble damages or $50,000.00, whichever is greater. Attorney fees are also recoverable. Our State Legislature clearly intended for borrowers to have some significant legal “hammers” at their disposal.