By Noe Rodriguez
(Victor Valley) –Recent media reports have disclosed documentation errors in the foreclosure proceedings at certain financial institutions. That affects families fighting to keep their homes in this down economy.
The Department of Corporations in California has issued a request to all licensees to review the foreclosure process and comply with all related civil codes.
To the average consumer, news of this move are important because not enough people know their rights when facing foreclosure proceedings.
The Commissioner’s office is reminding the importance of applying California Civil Code Section 2923.5, subdivision (a) (1), which prohibits lenders and loan servicers from starting foreclosure proceedings until 30 days after having contacted borrowers. This law arose because borrowers asserted that some lenders were sending default notices without first trying to communicate with homeowners.
Stories of corporations not following the law when initiating foreclosure proceedings are unfortunately far too common these days and have quickly caused concern among consumer right advocates.
In a move to regulate itself as well, California’s Department of Corporations is conducting an internal review of its foreclosure process. The move has already made an impact with a decrease on the homes in California going to foreclosure.
The new system is designed to inform the Department of compliance shortfalls.
All companies in the business of foreclosure are now required to document all contacts with subjects of foreclosure and keep a log of communications records regarding procedures.
The new changes have positively impacted the industry because more families are facing a more transparent procedure when exposed to the possibility of loosing their homes.
It is never easy to cope with the possibility of foreclosure, but at least the state is making sure companies do not fold or overpass the law designed to protect the consumer.
For more information about your rights during foreclosure, you can visit the California Department of Corporations at http://www.corp.ca.gov/FSD/CFP/default.asp
How is this affecting the sales of homes by lenders in the Inland Empire? Here are some numbers from sales in recent months:
*Riverside County in the month of August 2010 a total of 2,074 homes went to sale, from that, 462 homes went to the highest bidder other than the same lender (third party).
*In the month of September 2010, a total of 2,097 homes went to sale. From these 394 were purchased by a third party.
*In San Bernardino County in the month of August a total of 1,692 homes went to sale, from these 301 homes were purchased by a third party.
* In the month of September 2010 a total of 1,633 homes went to sale and from that 283 homes were purchased by a third party (according to foreclosure radar).
*This month of October looks like the Inland Empire will register between 20% and 25% less sales than previous months.
HOW AM I IMPACTED?
What is the relation between a reduction of foreclosures and slower sales? Simple: less foreclosures equals less repossessed homes available to sell.
From what I see, once these lenders adjust their foreclosure proceedings in the next month, all those homes that were put on hold will be showing at the steps of the court house and savvy, well funded investors will be able to grab all these good deals.
Keep an eye on this market, it is changing fast and whether you are a hopeful buyer or somebody trying to keep his/her home, the more informed you are, the best advantage you will have in this game we call real estate.
Editors note: Noe Rodriguez is an emerging real estate expert. He has been a guest on numerous radio shows and conferences in the industry. Rodriguez heads IK Investment an Inland Empire company dedicated to purchasing and restoring homes.
For more information, please call him at (909) 483-2696 or Noe9595@gmail.com.