According to the L.A. Times, California legislators have passed new laws that now await Governor Brown’s signature. These laws would provide the toughest protections for consumers facing problems with the mortgage.
“The legislation would make California the first state to prohibit lenders from “dual tracking,” the practice of negotiating with clients to modify a mortgage so that payments become more affordable while simultaneously pursuing foreclosure. In such cases, homeowners can wind up being evicted even though they had been working with the bank to modify their loans.
The measures would outlaw so-called robo-signing — the improper or faulty processing of foreclosure documents— and would allow state agencies and private citizens to sue financial institutions, under limited conditions, for economic compensation and for additional civil damages of up to $50,000 if lenders willfully, intentionally or recklessly violate the law. No lawsuit could go forward if the bank or servicer first fixes the problem with documentation or procedures, according to the bills.”
Nice to have some good news to help protect homeowners. Way to go California.

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This doesn’t “protect homeowners”. It protects “some” homeowners at the expense of others: primarily renters and new, esp 1st time, homebuyers.
Why? Because many of the people now in default are the same irresponsible people who knowingly & willingly LIED on their loan application (stated income) to take on debt they couldn’t pay back even if it was fixed 0% for 30 years. They have lived mtg payment/rent free (or skimming rent from tenants on the property) for 2-4 years… and now they get to keep the free pony. 50% principal reduction loan mods for all! Sue the banks for “wrongful” foreclosure!
Be careful what you wish for – this just subsidizes the irresponsible (or stupid) folks who gleefully participated in the mtg/housing bubble and now are crying foul cuz they can’t deal with the hangover… at the expense of renters and new buyers who are looking to own a home in a much more rational environment (and have to prove their income; what a concept).
GREAT … BUT SADLY, TOO MUCH TOO LATE FOR MANY MILLIONS!
If these “dual tracking” really become laws that may protect struggling homeowners from being scammed by those big lenders, I am fully supportive and thrilled.
Too bad, though, these kind of consumer protection laws often come too late for many millions victims already suffered … I can tell you this because I am one of those victims in 2010 when our home was put on the foreclosure auction sale to the public while awaiting in the process for our HAMP application “being approved.” What a screwup nightmare it was, not only did I face losing my home and had to pay our lender unfair fines and their ridiculous attorney fees, but also in all those dark years I lost my job, was severely depressed, disabled, family abandoned me, FICO scores ruined (from 800+ to really bad, low scores), credit cards suing us and ended up I filed bankruptcy for protection from those hungry creditors.
Now we all wonder why such a “dual tracking” thing can be allowed to happen in America for years with seemingly no one really cares to take remedy actions and/or protective measures for consumers in the first place? What happens with America which once in my dream was a great country?