ONLY 10 PERCENT

The Contractors State License Board is alerting California consumers who are considering hiring a painter, landscaper, or any other type of construction contractor that it is illegal to ask for or accept a down payment of more than 10 percent of the total home improvement contract price or $1,000 whichever is less. 

A person should never pay for work before it is completed, or pay for materials before they are delivered to the property.  Make sure the written contract contains a progress payment schedule that outlines project phases, with all costs and estimated completion dates.

More helpful tips on hiring contractors can be found on the CSLB website: cslb.cagov.

For referrals go to Angies List

California  Homeowner  Bill of Rights  (SB 900)

The California Homeowner Bill of Rights (CHBR) is designed to protect homeowners who are trying to modify their  mortgages or sell their homes as a Short Sale. The CHBR, effective January 1, 2013, creates guidelines for most  mortgage servicers who start a foreclosure following a default on a:

• First Deed of Trust,

• Owner-occupied,

• 1 to 4 unit residential property.
Prohibits Dual-Tracking

A lender is prohibited from continuing with the foreclosure process:

• While a completed first lien loan modification application is pending, or

• A short sale has been approved.

Provides a Single Point of Contact

When a borrower requests a foreclosure prevention alternative, a mortgage servicer must:

• Establish a single point of contact, and

• Provide the borrower with one or more direct means of communication with them.

Notice of Postponement of Trustee Sales

If a Trustee Sale has been postponed, a lender must give the borrower:

• Written notice of the new sale date and time.

Approvals Binding on Successors

If a loan modification or short sale has been approved and the loan is sold to another lender:

• The subsequent mortgage servicer is required to honor any previously approved foreclosure

prevention alternative.

No Fees Allowed

While a foreclosure prevention alternative is being considered lenders may not collect :

• Application fees, or

• Late fees.

Disclosures Required

Prior to recording a Notice of Default (NOD) and within 5 days after recording a NOD, lenders must:

• Give the borrower a notice that explains their alternatives to foreclosure.

Violations of the California Homeowner Bill of Rights

Homeowners may:

• Seek an injunction and damages for violations of the CHBR

• File a complaint with the California Department of Real Estate if the violator holds a real estate license.

For more detailed information about the California Homeowner Bill

of Rights consult a real estate attorney or California’s Office of the

Attorney General’s web site: oag.ca.gov