Will Homeowners Bill of Rights Spur Litigation?
A recent San Francisco Daily Journal story noted that with the [forthcoming] passage of the Homeowners Bill of Rights, “all eyes will be on the courts to see whether the new laws spur litigation.”
Consumer advocates are unhappy with limits upon homeowners who can sue to stay in their homes, while lenders are concerned with frivolous lawsuits by plaintiffs’ attorneys.
The article noted that ‘lenders are concerned with uncertainties around how many times a borrower can request a loan modification and what qualifies as “material” violation of the foreclosure process.
UTA Vice President, Martin T. McGuinn, Esq., of Kirby & McGuinn, was quoted in the article: “It’s going to be an onslaught of litigation. There’s every incentive to file suit, there’s every incentive to default.”