In July, I posted a snippet about the “Homeowner’s Bill of Rights” (“HOBR” or “HOBoR”), also known as the California Foreclosure Reduction act.
At the firm’s law blog, I later wrote with more specificity about HOBR explaining some of the requirements that have changed about notices to foreclosure sales — such as:
- Before a Notice of Default (“NOD”) may be recorded, the borrower is entitled to a Pre-NOD notice advising of the borrower’s right to documentation.
- After an NOD is recorded, the servicer must send the borrower a notice within 5 business days advising of foreclosure prevention alternatives (‘FPA”)
- The servicer must send the borrower a written acknowledgment letter 5 days after receipt of borrower’s loan modification application.
- Denial letters of loan mod applications must include information about the appeals process
- Foreclosure notices must be personally served.
- If a trustee’s sale is post-poned more than 10 days, the servicer must provide a written notice to the borrower within 5 business days.
- Most importantly – the servicer must rescind the NOD or cancel the trustee’s sale when the borrower executed a “permanent foreclosure prevention alternative.
In addition to HOBR, Governor Jerry Brown also signed into law SB1191 in late September, which requires landlords in foreclosure to disclose that fact to prospective tenants. This law goes into effect January 1, 2013. More details here on the firm’s blog and here and Senator Simitian’s site.