California Homeowners Bill of Rights--The Details: A few days ago, I wrote of the passage in the California Assembly of the bill for what is now called the Homeowners Bill of Rights. Well, it has now passed the state Senate as well, mostly on a straight party line vote (one Republican did vote to support--just one!). The Governor, Jerry Brown, has said he will sign the bill and it would then go into effect on January 1, 2013. There are six major provisions: 1.) it effectively bans 'dual tracking', the current method by which banks maintain the foreclosure process on a home at the same time they are considering a loan modification. The result in many cases, is a home is foreclosed before any mod can be done due to constant delays in the mod process. Under the new law, if you seek a mod, the lender cannot proceed with a foreclosure until the mod decision is final and, presumably, rejected. 2.) Contacts: a lender MUST provide a borrower with ONE point of contact in the bank. That one person will be responsible for updating the homeowner with any details or actions on his/her home be they foreclosure or loan mod. This way should eliminate the current situation where all too often the right hand doesn't know what the left is doing. 3.) If a borrower's loan mod request is rejected, the bank MUST clearly explain why it was rejected. 4.) Borrower Recourse: This gives borrowers the right to sue lenders for "significant, material violations" of the law. 5.) Fines: Provides lender fines of $7500 per loan for filing and recording unverified documents (and, before you ask, no, I don't know exactly what constitutes such a document, but your attorney should know). 6.) Limits: This law ONLY applies to first mortgages for owner occupants. So, if your issue is with a Home Equity or 2d mortgage, or if the property in difficulty isn't your primary residence, you have to look elsewhere for help because this is just for your primary residence first mortgage. Looking forward to January 1, 2013, I wish you Good Luck.