Foreclosure filings remain a concern for many homeowners in California; the lawyers at Consumer Action Law Group are dedicated to stopping foreclosure and fighting illegal lending practices.
November 17, 2015. Los Angeles, California — Mortgage Servicing Fraud is still common years after the passage of the California foreclosure law SB 900 in 2013. The law was passed after the financial meltdown as a kind of a “Bill of Rights” to keep homeowners from losing their homes. The law was supposed to protect homeowners from illegal methods used by mortgage companies to foreclose on properties. While there has been some progress in reforming this practice, many mortgage companies continue to foreclose illegally on properties; often without the homeowner’s knowledge of the foreclosure laws that protect them.
One very common practice of mortgage servicing fraud is called “Dual Tracking”. This occurs when the mortgage company reviews a borrower for a modification while pursuing foreclosure at the same time. The mortgage company must give a homeowner time to explore options before selling the home and are required to give borrowers foreclosure alternatives to help them stay in their homes.
Mortgage companies commit loan fraud by acting deceptively when purporting to help borrowers to avoid foreclosure. There are common reports of lenders that “lose” paperwork sent by the borrower in the modification process to justify their foreclosure proceedings. A mortgage lawyer can stop a lender from foreclosing on a borrower’s property when the lender acts deliberately to fast track a foreclosure. The law in California also states no foreclosures can occur before alternatives have been offered by the lender.
Lauren Rode, a mortgage attorney at Consumer Action Law Group, says that she can easily identify violations under SB 900. According to Ms. Rode, “the foreclosure law has helped many borrowers, but there are still many mortgage companies that are clearly violating the law; and many borrowers do not know their rights.” Under SB900, when a mortgage company sees a borrower falling behind on payments, they are required to contact the borrower and offer options before foreclosing on the property. Ms. Rode states, “in California, the mortgage company is required to notify the homeowner in writing and provide them with affordable alternatives prior to starting the foreclosure process.” She has helped hundreds of borrowers to stop the foreclosure by filing suit against mortgage companies who are finding ways around the California foreclosure laws.
Experienced mortgage lawyers can help individuals stop the unlawful sale of the house. Any homeowner in California who receives a notice of default or notice of trustee sale is strongly advised to immediately consult with an attorney that can provide immediate assistance. The mortgage attorneys at Consumer Action Law Group give free legal advice to borrowers facing foreclosure. To speak to an attorney, they can be reached directly at 818-254-8413. Consumer Action Law Group provides legal assistance to homeowners throughout the state of California.