SB 1275: Borrower Stories
Three California homeowners.
Three avoidable foreclosures.
Three ways SB 1275 would help stop the foreclosures that can be stopped.
Patricia and Manuel Mondoy, Hayward, Calif.
Under SB 1275, GMAC would have been required to complete its evaluation of Patricia and Manuel M.'s loan modification before recording a Notice of Default. If GMAC had completed the evaluation process before initiating foreclosure, the borrowers would have received a modification without having to go through both a foreclosure and an eviction proceeding and over six months of uncertainty about whether or not they would be able to keep their home.
Erika Flores, Napa, Calif.
Under SB 1275, Wells Fargo would have been required to evaluate Erika F. for a loan modification and provide her with a written notice explaining the basis for a denial at least 30 days before recording a Notice of Sale. If Ericka had received notice that Wells Fargo was canceling the trial plan she had been told she was on, she could have pursued other options – like the modification she ultimately got – without going through both a foreclosure and an eviction proceeding.
Pamela and James Conner, Vallejo, Calif.
Under SB 1275, First Horizon would have been required to complete its evaluation of Pamela and James C.'s loan modification and provide them with a written denial notice explaining the basis for the denial before recording a Notice of Default. If the family had received such a notice, they would have been able to either contest the denial if—as appears to be the case—it was a mistake, or request review for other foreclosure avoidance options. Instead, they have lost their home in foreclosure and may not be able to get it back.
Support SB 1275.
Make servicers play fair. It makes a difference.
Published: June 2, 2010