On Monday, California legislators passed a new bill barring banks from going ahead with foreclosures while still negotiating loan modification with homeowners.
The practice is known as “dual-tracking”.
Also, it would allow homeowners to file lawsuits against banks involved in “robo-signing”. Just a few of the banks accused of robo-signing that were under review were: Bank of America, Chase, Citibank, MetLife and Wells Fargo.
The laws are opposed by banks not only in California, but across the nation. Many mortgage service believe that the new laws will not prevent foreclosures, but only delay them for a time.
The new amendments will only apply to first mortgages and homeowners who currently occupy their property.
Governor Jerry Brown is expected to sign the bill in the coming days.
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