California’s real estate market had good news in January — the rate of foreclosures dropped by a whopping 39.5% (as compared to December). Although foreclosure rates were down in the nation overall, California’s drop was far greater than that of any other state.
Experts are attributing this drastic change in foreclosure rates to California’s new Homeowner Bill of Rights, which went into effect on January 1, 2013. The new law forbids dual tracking (when a mortgage servicer proceeds with foreclosure while it’s also considering a homeowner’s application for a loan modification) and requires servicers to provide homeowners with a single point of contact, among other things. (To learn more about the new law, see Nolo’s article California Foreclosure Protection: The Homeowner Bill of Rights.)