The California HomeOwner Bill of Rights does not take effect until January 1, 2013.
Not everyone will be protected. If you hire the wrong type of company to help delay your foreclosure, you can be burned in more ways than one; you will not receive the protections of this new law if you engage a foreclosure delay firm.
If you can avoid a foreclosure until then, consider that certain individuals are not protected under the new law.
1. You must be the actual borrower: just being on title to a property is not enough to receive protection under this law.
2. The property must be in California and a 1-4 Unit residential property.
3. The property must be owner occupied.
4. You are not a “borrower” under the law if you have surrendered the property as evidenced by a letter confirming the surrender or delivery of the keys to the property to the lender or authorized agent…even if the foreclosure has not yet occurred.
5. You are not a “borrower” while you are in an active bankruptcy case…until the case is dismissed or closed or until “relief from the automatic stay” has been granted.
6. Lastly, you are not a “borrower”, and NOT protected under the new law, if you hire a foreclosure delay firm or partake in a “fractionalized interest” scheme.
Avoid non-attorneys or companies who add people to your home’s title and then file bankruptcy in the other person’s name. Not only is this a scam, it is a bankruptcy crime.
Using an ethical lawyer is ok because the primary business of most lawyers is NOT “advising people who have decided to leave their homes on how to extend the foreclosure process.”
By hiring these types of business voids your protections under the potentially invaluable and much needed California Home Owner Bill of Rights.
J. Arthur Roberts, Esq.