New homeowner protection
The feds are providing more protections for homeowners struggling to stay in their homes. It's all thanks to new rules issued by the Consumer Financial Protection Bureau.
They're designed to protect mortgage borrowers from costly surprises and runarounds by their servicers. One of the biggest new protections involves restricted dual-tracking. That's when the servicer moves forward with foreclosure, while at the same time working with the borrower to avoid foreclosure. Under the new rules, that's now restricted.
Under the new protection rules, servicers must also provide information to homeowners on alternatives to foreclosure. And the servicer must give the borrower time to accept any alternative offer, before moving forward with a foreclosure sale.