Homeowner Bill of Rights could improve real estate conditions in San Diego
When 2013 begins, homeowners in California will begin to reap the benefits of The Homeowner Bill of Rights, a new piece of legislation that will help protect local residents from having their properties being repossessed. This is good news for owners of real estate in San Diego, CA, as it will help them keep their most valuable assets.
According to the San Diego Union-Tribune, San Diego was hit especially hard during the foreclosure crisis. Of the 900,000 foreclosures recorded between 2007 and 2011, more than 61,000 were located in San Diego County. The Homeowner Bill of Rights will help prevent this from continuing, as it includes measures to:
- Cease the process of beginning the foreclosure process while a loan modification has not been completed by the bank, a phenomenon called dual track foreclosure.
- Stop robo-signing - or foreclosed documents being approved without proper review - from occurring.
- Guarantee a single point of contact for homeowners, to ensure that one individual knows the details of the situation and can help them through the process of trying to keep their homes.
- Implement tools to control blight and prosecute mortgage fraud to help homeowners work within code regulations.
"Too many Californians have lost their homes despite doing all they can to avoid foreclosure," said Norma Garcia, senior attorney of the Consumer Reports' Consumers Union, according to the news source. "California's new law will help more homeowners avoid foreclosure and keep their homes. Ultimately, that will help stabilize California's housing market and benefit California families, communities and our economy."
Individuals who are looking for homes for sale in San Diego can also benefit from this new legislation. There has been a decrease in the number of homes on the market, as many homeowners are unable to put their properties up for sale due to current personal and economic conditions. The Homeowner Bill of Rights can affect both the financial and real estate sectors and help improve the local economy by generating additional home sales in San Diego County.
While some experts openly favor the new legislation, others have come out and criticized some of its provisions. Those who are dubious believe the new regulations could prevent the housing recovery from gaining steam by spurring lending institutions to be stricter about credit to consumers and blocking the foreclosure pipeline. However, the law has the potential to help thousands of homeowners living in California.