A special note to those who are located in the state of California:

The California state legislature passed the Homeowner Bill of Rights this month.  I was present for the vote on both the Assembly and Senate floors, and could not help but participate in the banned applause which erupted from the viewing balcony after the vote was counted. This legislation does not fix many serious issues borrowers face in attempting to negotiate a modification with their lenders, but it will make the mortgage modification/foreclosure process more fair and transparent, which anyone who has ever tried to seek any cooperation from their lenders in the past can attest, has been sorely lacking.

Unfortunately, the legislature did not insert an urgency clause before taking the bills to vote, so the protections don't go into effect until January 1, 2013. There are a few groups of activists who are requesting the governor declare a foreclosure moratorium until January 1^st to allow those currently in the foreclosure process an opportunity to seek relief under the legislation. Occupy Sacramento's Foreclosure Committee is planning to hold a vigil at the Governor's residence beginning in August when the legislative session reconvenes.

I know this comes as too little/too late for thousands of homeowners who have already lost their homes, of questionable value to those in foreclosure now, and seemingly of no help to those living in other states, but it isn’t as if the lender’s internal procedures are likely to be differentiated by the location of the property, and I’d think they would begin implementing procedures now in order to be in compliance come January.  I'd like to believe there will be consequential benefits to groups not technically covered by the legislation.