The California Homeowner Bill of Rights was designed to prevent wrongful foreclosures and ensure lenders treat borrowers fairly. If you’re facing foreclosure, understanding these protections can make all the difference.
1. What Is the Homeowner Bill of Rights (HBOR)?
Enacted in 2013 and updated several times since, California’s Homeowner Bill of Rights (HBOR) is a series of state laws that require mortgage servicers to treat homeowners fairly during the foreclosure process.
These statutes, found mainly in Cal. Civ. Code §§ 2923.5–2924.12, were created after the 2008 housing crisis to stop banks from foreclosing without meaningful communication or review of homeowner assistance requests.
In short, HBOR ensures that you—the homeowner—have the chance to be heard and helped before losing your property.
2. Key Protections Under HBOR
• Single Point of Contact (SPOC)
Lenders must assign a dedicated contact person or team to your case once you request foreclosure prevention options. This SPOC must communicate consistently, provide accurate information, and help you complete documents—reducing the risk of lost paperwork or confusion.
• No “Dual Tracking”
Servicers cannot continue with foreclosure while a complete loan modification application is under review (Cal. Civ. Code § 2923.6). This rule prevents lenders from pursuing a foreclosure sale while simultaneously pretending to process your request for help.
• Mandatory Contact Before Foreclosure
Before recording a Notice of Default (NOD), lenders must make a good-faith effort to contact you by phone or mail to discuss options to avoid foreclosure (Cal. Civ. Code § 2923.55).
Failure to make this contact can temporarily stop the foreclosure until compliance is proven.
• Verification and Documentation Rights
You have the right to request and receive documentation verifying the debt and ownership of your loan. Servicers must respond promptly and provide accurate information about who owns or manages the mortgage.
• Protection from Fraud and Abuse
HBOR prohibits “robo-signing” and requires servicers to review verified, accurate documents before taking foreclosure actions.
3. How These Rights Help You
These laws were written to protect California homeowners from rushed or wrongful foreclosures.
If your lender violates any HBOR rule, you may have the right to:
– Demand a pause in foreclosure proceedings until the violation is corrected.
– File a complaint or lawsuit to enforce compliance.
– Recover attorney’s fees if you prevail in court.
Even without litigation, simply referencing HBOR protections in writing can encourage lenders to cooperate faster and take your case more seriously.
4. Practical Steps to Use Your HBOR Rights
1) Keep detailed records of every call, letter, and email with your lender.
2) Submit all requests in writing and keep copies.
3) Ask for your SPOC’s contact info and insist that all updates go through them.
4) Remind the servicer in writing that you are protected under HBOR if foreclosure moves forward while an application is pending.
5) Seek legal advice if you believe your rights have been violated—many housing counselors and legal aid offices can assist for free or low cost.
The Homeowner Bill of Rights exists to level the playing field between lenders and borrowers. By knowing your rights, you can hold your servicer accountable and keep control of your home’s future.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
