This is just a reminder that the California Homeowner Bill of Rights becomes effective January 1, 2013.  Signed into law earlier this year, the Bill of Rights contains several significant mortgage and foreclosure reforms for residential property in California including:

• Required Documentation – Mortgage servicers will be required to fully document for consumers the servicers’  right to foreclose in an effort to prevent fraudulently signed mortgage documents.
• Prohibition Against “Dual Track” Foreclosures – Mortgage servicers will be required to render a decision on a loan modification application before continuing with the foreclosure process rather than pursuing both at the same time.
• Single Point of Contact – A lender or servicer will be required to designate a “single point of contact” for borrowers with loan modification applications pending.
• Modification Denial Explanation – Lenders will be required to provide clear explanations where loan modification applications are rejected or denied.