Governor Dayton will soon be signing a new bill that includes new protections for homeowners facing foreclosures. This new law is known as the Homeowners Bill of Rights.
Some of the ways that it protects homeowners are as follows:
- Loan servicers are required to communicate all options to homeowners.
- Loan servicers are required to offer loan modifications to all eligible homeowners.
- “Dual tracking” is banned. Dual tracking is when servicers foreclose without a clear yes or no on loan modification.
- Servicers are required to assist homeowners in submitting documentation regarding the foreclosure process.
- Homeowners are allowed to take the servicer to court to stop a foreclosure if the servicer fails to comply with any aspect of the law.