What is California's Homeowner Bill of Rights?

California's Homeowner Bill of Rights is a comprehensive set of laws (primarily California Civil Code Section 2923 et seq.) that provides significant protections for homeowners facing foreclosure. Enacted in 2012 and strengthened over the years, these laws were created in response to widespread foreclosure abuses during the housing crisis.

Key legislation includes:

• SB 900 - The original Homeowner Bill of Rights (2012)
• AB 278 - Extensions and enhancements (2021)
• Various updates strengthening borrower protections

Your Major Legal Protections

1. 🤝 Right to a Single Point of Contact

What this means: Your mortgage servicer must assign you one person or team to handle your foreclosure case.

Your rights:

• Direct access to someone knowledgeable about your file
• Consistent communication instead of getting transferred around
• The contact person must have authority to make decisions
• You can request this contact's direct information

Why this matters: Before this law, homeowners often got different answers from different representatives, making it impossible to get consistent help.

2. 🚫 Dual Tracking Prohibition

This is your most powerful protection. Lenders cannot pursue foreclosure while they're reviewing your application for loan modification or other loss mitigation.

Specifically prohibited:

• Recording a Notice of Default while your modification is under review
• Scheduling a foreclosure sale during the review process
• Conducting a foreclosure sale while reviewing your application
• Moving forward with foreclosure if you're making trial payments

Real-world example: If you submit a complete loan modification application on Monday and your foreclosure sale is scheduled for Friday, the lender must postpone the sale until they've completed their review of your application.

3. 📋 Right to Complete Loss Mitigation Review

What this means: Your lender must fully evaluate all loss mitigation options before proceeding with foreclosure.

Your rights include:

• Right to submit applications for workout options
• Right to receive decision in writing with specific reasons
• Right to appeal denials with additional documentation
• Right to receive information about available programs

4. 📞 Right to Accurate Information

Your servicer must provide:

• Accurate payoff amounts and reinstatement figures
• Clear explanation of available options
• Truthful information about your loan status
• Proper accounting of all payments and fees

5. ⏰ Right to Proper Notice Timing

California requires specific timing for foreclosure notices:

• Notice of Default: Cannot be recorded until loan is 30 days delinquent
• Notice of Sale: Must be at least 90 days after Notice of Default
• Sale Date: Must be at least 21 days after Notice of Sale is recorded

Special Protections During COVID-19

California extended additional protections during the pandemic:

• Foreclosure moratoriums for properties affected by COVID-19
• Extended application periods for loss mitigation
• Additional notice requirements for COVID-related hardships
• Tenant protections in foreclosed properties

What Violations Look Like

Unfortunately, not all lenders follow these laws perfectly. Watch for these red flags:

How to Enforce Your Rights

Document Everything

• Keep copies of all correspondence with your lender
• Document phone calls with dates, times, and representatives' names
• Save all emails and text messages
• Take photos of any notices posted on your property

Report Violations

If you believe your rights have been violated:

• Consumer Financial Protection Bureau: Submit complaints online
• California Department of Financial Protection: File state-level complaints
• Attorney General's Office: Report systematic violations
• Legal counsel: Consider hiring an attorney for serious violations

Potential Remedies

Successful enforcement can result in:

• Postponement or cancellation of foreclosure sale
• Monetary damages for violations
• Attorney's fees (in some cases)
• Forced compliance with proper procedures

Limitations of the Homeowner Bill of Rights

These laws don't prevent foreclosure - they ensure it's done fairly. The protections don't apply if:

• You don't communicate with your lender
• You don't submit required documentation
• Your loan doesn't qualify for modification programs
• You've exhausted all available options

Important: Commercial properties and some investment properties have fewer protections.

Using Your Rights Strategically

Early in Foreclosure Process

• Request your single point of contact immediately
• Submit complete loss mitigation applications promptly
• Document all communications from the start
• Understand your deadlines and timelines

If Facing Imminent Sale

• Check if dual tracking violations occurred
• Verify all notices were properly served
• Confirm sale procedures are being followed correctly
• Consider emergency legal action if violations are clear

Working with Professionals

When to Contact an Attorney

• Clear violations of the Homeowner Bill of Rights
• Complex legal issues with your foreclosure
• Disputes over loan modifications or applications
• Need for emergency legal action to stop a sale

HUD-Approved Counseling

Free foreclosure counseling is available through HUD-approved agencies. They can help you:

• Understand your rights under state and federal law
• Navigate loss mitigation applications
• Communicate effectively with your servicer
• Explore all available options

Alternative Solutions

Sometimes, despite your legal protections, keeping your home isn't feasible. In these cases:

• Quick sale to cash buyer: Avoid foreclosure entirely while preserving your rights
• Short sale: Use your legal protections to ensure fair treatment during the process
• Deed in lieu: Negotiate favorable terms using your rights as leverage

Key Takeaways

1. You have powerful legal protections in California that don't exist in many other states
2. Document everything from your first missed payment forward
3. Know your single point of contact and use them effectively
4. Dual tracking violations are common and can stop foreclosure proceedings
5. These rights must be enforced - they don't protect you automatically
6. Professional help is available and often necessary to fully utilize your protections

About My Foreclosure Solution

We're licensed California real estate professionals who have been helping homeowners navigate foreclosure since 2014. We understand both the legal protections available to you and the practical realities of the foreclosure process.

Whether you want to fight to keep your home or need to exit quickly with a cash sale, we can help you understand your options and protect your rights throughout the process.