As many people know, California was at the forefront of the devastation that the real estate bubble caused. Many people lost their homes and jobs, which threw the entire Californian economy into turmoil. For many of these people, a great victory was won today by California lawmakers. Homeowners now have protections against abusive banks who pressure them into giving up foreclosed homes. The assembly line process that has persisted in the United States since the real estate bubble collapsed is hopefully going to be rectified so that homeowners can have a little more protection under the law.
There are an estimated 700,000 people in California who are facing foreclosure as we speak which is disastrous in of itself. Many of these people have had their homes for a very long time, but the real estate bubble made their house worth less than the debt they owe. Furthermore, many of these families have lost their jobs because the economy has been so bad in California. The main goals of the laws are just to add transparency and fairness to the foreclosure process. There will be no bailouts for under water homeowners, but they will be given every luxury afforded by the law so that they are not bullied into doing something.
For many of these 700,000 people, the news could not have come any sooner. Although it may take a short while to be enforced, many people entering the foreclosure process are already excited that they can protect themselves from abusive practices. One abusive practice that many lenders use is to give customers the run-around. Now, the law stipulates that lenders must offer a single point of contact with whom they can discuss their loan and all modifications and alterations that need to be made.
The protection of civil lawsuits is also on the homeowner’s side as well. Violators of the new law will be eligible for a lawsuit if the homeowner feels as though they were using unfair practices. This is a huge gain for many of the California homeowners who are on the brink of foreclosure. Many of them get desperate for help and end up requiring payday loan help because they are unable to get out of the payday loan debt trap they currently may be in, when their house is about to be taken from them. This new law will hopefully afford them the luxuries that they deserve for their patience with the American economy. It’s good to see lawmakers making a difference for a change!
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