Homeowner Bill of Rights
Members who fought foreclosure led grassroots campaign Thanks in part to the efforts of our members, Californians have a tough new law to protect working families from losing their homes to lenders.
"The Homeowner Bill of Rights will help hundreds of thousands of Californians--including many state employees and their families--keep their homes," said Local 1000 President Yvonne R. Walker. "This law contains provisions that protect the American Dream by empowering homeowners with new tools to avoid foreclosure."
Walker and several members have testified or spoken out on behalf of the Homeowner Bill of Rights, which was signed into law July 11 by Gov. Jerry Brown.
Stopping foreclosures
The law is expected to help an estimated 700,000 people in default, as well as hundreds of thousands of California residents who are having a tough time paying or modifying home mortgages.
The law includes provisions to encourage lenders and mortgage companies to negotiate with homeowners who have fallen behind instead of foreclosing on them. It prohibits "dual tracking,'' a practice where foreclosure is pursued by banks, even as new terms are simultaneously negotiated with a residential loan borrower. The new law also requires lenders or loan servicers to establish a single point of contact for borrowers and requires a live person to verify whether a bank has the right to foreclose.
"This legislation will make the mortgage and foreclosure process more fair and transparent, which will benefit homeowners, their community and the housing market as a whole," said Attorney General Kamala Harris, who authored the legislation and led the fight for its passage along with a broad coalition of groups.
Members fought for homes & new law
"I hope this new law helps thousands of people avoid the nightmare that I went through," said Renee Lee, a recently retired Local 1000 member who almost lost her home when then-Gov. Arnold Schwarzenegger imposed furloughs three days a month in 2009-10. After Lee protested at banks, spoke to the news media and testified before the Legislature, her lender finally agreed to a modification.
Rose Gudiel, who works at the Employment Development Department, agrees. With assistance from Local 1000 and other allies, Gudiel refused to leave her home last year when sheriff's deputies tried to evict her on behalf of her lender. Her lender only agreed to a loan modification after Gudiel drew national media attention.
"Thousands of people are being forced out of their homes, and there was no government legislation to help keep them from losing their dream,'' Gudiel said. "I'm happy the Homeowner Bill of Rights is now law because thousands of families need help right now."
The law is expected to help an estimated 700,000 people in default, as well as hundreds of thousands of California residents who are having a tough time paying or modifying home mortgages.
The law includes provisions to encourage lenders and mortgage companies to negotiate with homeowners who have fallen behind instead of foreclosing on them. It prohibits "dual tracking,'' a practice where foreclosure is pursued by banks, even as new terms are simultaneously negotiated with a residential loan borrower. The new law also requires lenders or loan servicers to establish a single point of contact for borrowers and requires a live person to verify whether a bank has the right to foreclose.
"This legislation will make the mortgage and foreclosure process more fair and transparent, which will benefit homeowners, their community and the housing market as a whole," said Attorney General Kamala Harris, who authored the legislation and led the fight for its passage along with a broad coalition of groups.
Members fought for homes & new law
"I hope this new law helps thousands of people avoid the nightmare that I went through," said Renee Lee, a recently retired Local 1000 member who almost lost her home when then-Gov. Arnold Schwarzenegger imposed furloughs three days a month in 2009-10. After Lee protested at banks, spoke to the news media and testified before the Legislature, her lender finally agreed to a modification.
Rose Gudiel, who works at the Employment Development Department, agrees. With assistance from Local 1000 and other allies, Gudiel refused to leave her home last year when sheriff's deputies tried to evict her on behalf of her lender. Her lender only agreed to a loan modification after Gudiel drew national media attention.
"Thousands of people are being forced out of their homes, and there was no government legislation to help keep them from losing their dream,'' Gudiel said. "I'm happy the Homeowner Bill of Rights is now law because thousands of families need help right now."