Assemblymember Holly J. Mitchell (D-Culver City) has authored a Homeowners’ Due Process Rights bill, A.B. 2425, which she said is a much-needed measure to protect homeowners going through the foreclosure process.
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Ms. Holly J. Mitchell
An investigation by state Atty. Gen. Kamala Harris has revealed that the foreclosure process has been undermined by industry practices causing uncertainty in the system of public recording of real estate interests, and chaos in the loan modification process.
These have combined to prejudice homeowners’ ability to prevent foreclosures and in some cases have resulted in wrongful foreclosures, Ms. Mitchell maintains. . Moreover, under some circumstances, homeowners say theyhave little recourse to challenge foreclosures that may have been completed unlawfully.
Two months ago, on Feb. 15, the San Francisco Assessor-Recorder announced audit findings showing 84 percent of foreclosures on San Francisco homes 2009, 2010 and 2011 were corrupted by at least one violation of California’s foreclosure laws.
California, in particular, is in the grip of a foreclosure crisis. An unprecedented number of homeowners have lost their homes due to the economic downturn. Under some circumstances, homeowners have little recourse to challenge foreclosures that may have been completed unlawfully.
“AB 2425 is a critical piece of a larger banking reform measure that is designed to protect homeowners,” said Ms. Mitchell. “This bill guarantees homeowners a single point of contact when dealing with a mortgage servicer to pursue loss mitigation.”
She said heroffice has been besieged with calls from constituents on the verge of losing their homes. “I am committed to finding a way to help them,” Ms. Mitchell said.
The bill would define “robo-signing” as an egregious violation where documents are signed with factual assertions that are not verified or true. It would levy a civil penalty of $10,000 per document against any entity caught engaging in robo-signing. AB 2425 authorizes borrowers to challenge the unlawful beginning of a foreclosure process in court if they have reason to believe their provider failed to comply with the statutory requirements of the foreclosure process.
Ms. Kamlager may be contacted at sydney.kamlager@asm.ca.gov
