Saturday, July 14, 2012

Arizona should adopt Calif. law on foreclosures

"Dual-tracking" will be outlawed. The law bans banks from pursuing foreclosure while a borrower is seeking a loan modification, a process known as "dual-tracking" that has led to countless foreclosures -- even as homeowners were attempting to stay in their homes.

Lenders cannot give borrowers the runaround. Homeowners will no longer have to speak to a different person every time they call their lender and resubmit the same mountain of paperwork to different people at the same bank. The new law requires banks to assign borrowers a single point of contact, or they can be taken to court.

Borrowers will be able to sue their banks. California homeowners will now have the right to sue banks for "significant, material" violations of the law. Homeowners will also have a clearly defined right to access the courts to protect themselves from violations.

Read the rest of the article at AZ Central

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1 comment:

Bradley Shaw said...

This sounds like a good idea, for the people that really would benefit from a modification of their loan due to a change of income. I don't personally know anyone in that position. The people I worked with, about 8 of them, all walked away from their home because they didn't want to pay back a loan they were upside down in. Stranger is how ALL of those people had money to buy new toys (Harleys, boats, travel trailers, sand rails, quads etc) after they walked away from their house/loan.