Mitchell Joins Governor, Attorney General to Announce Homeowner's Bill of Rights

July 11, 2012

At press conferences held July 11 in Los Angeles and San Francisco, the Governor,  Attorney General Kamala Harris and Assemblymember Holly J. Mitchell (D-Culver City) announced that the Homeowner's Bill of Rights will become California state law with the Governor's signature January 1st.

AB 278 and SB 900, codifying much of the Homeowner's Bill of Rights negotiated earlier this year with major banks by Attorney General Kamala Harris and offering potential relief to many of the nearly 700,000 Californians now in delinquency or foreclosure on home mortgages, includes key provisions from AB 2425, introduced earlier this year by Assemblymember Holly J. Mitchell (D-Culver City).

These bills give homeowners facing foreclosure a clear, fair process for saving their most valuable asset, said the Assemblywoman, a joint author of AB 278 and a co-author of SB 900. Too many of those losing their homes are subjected to bewildering and arbitrary procedures that block them from re-negotiating mortgages on terms they are able and willing to pay.

Requiring time to complete loan modification (no dual tracking), an established point of contact, explanation for denial and the right to sue for unfair foreclosure, the law contains protections expected to come as particularly welcome relief to homeowners of modest means.

80% of those who get loan modifications stay out of foreclosure, Mitchell added. One in 10 of minority homeowners need them, but approvals lag. The Homeowner's Bill of Rights will help keep people in their homes.

Contact: Charles Stewart, (310) 342-1070