The California Homeowner Bill of Rights (HBOR) is a group of Civil Code provisions that set rules for how mortgage servicers handle defaults and foreclosures on owner-occupied homes. It requires contact before a notice of default, a single point of contact for people seeking help, limits on foreclosing during a pending application, and accurate foreclosure paperwork, and it lets homeowners go to court over material violations.
If you think a servicer has skipped one of these steps and you have a foreclosure notice in hand, call (415) 754-0115 to schedule a free consultation, or reach us through the contact page.
Who the California Homeowner Bill of Rights protects
HBOR took effect in 2013. Some provisions were allowed to lapse and were then restored, with changes, starting in 2019. Its core protections generally apply when:
- The loan is a first-lien mortgage or deed of trust.
- The property is residential, one to four units, and occupied by the borrower as a principal residence.
- The foreclosure is the non-judicial trustee sale process that most California lenders use.
A few duties, including the single point of contact rule, apply only to larger servicers, generally those that conducted more than 175 California foreclosures in the prior year. Smaller servicers have parallel but somewhat lighter obligations.
The protections, one at a time
Contact before a notice of default
Before recording a notice of default, the servicer generally must contact you, in person or by phone, to assess your financial situation and explore options to avoid foreclosure, then wait 30 days. If it cannot reach you, it must show it made diligent efforts, such as repeated calls and a letter. The notice of default itself must include a declaration that the servicer met these requirements.
Information after the notice of default
Soon after a notice of default is recorded, the servicer must send information about foreclosure prevention alternatives that may be available and how to apply for them.
Written acknowledgment of your documents
When you submit a loss mitigation application or documents, the servicer must acknowledge receipt in writing within a short period and tell you about deadlines and any missing items.
A single point of contact
Once you ask about a foreclosure prevention alternative, a covered servicer must give you a single point of contact: a person or team who knows your file, can tell you what is missing, and has the authority to move it toward a decision. The rule exists because homeowners used to speak with a different representative on every call.
No dual tracking
Once a complete application for a foreclosure prevention alternative is in, the servicer generally may not record a notice of default or notice of sale, or conduct a sale, until the application is decided, any appeal period has run, or you fail to perform under an approved plan. Our article on the notice of default in California explains where this fits in the timeline.
Accurate foreclosure documents
Servicers must ensure that foreclosure documents are accurate, complete and supported by competent and reliable evidence, including the servicer's right to foreclose. This responded directly to "robo-signing," where documents were signed in bulk without review.
What HBOR does not do
It is easy to overestimate the law. HBOR does not require a servicer to approve a loan modification, reduce principal, or accept a short sale offer. It sets process rules. It also does not generally cover investment properties, second homes, or junior liens such as most home equity lines. Knowing these limits helps you focus on the claims that actually fit your facts.
How violations can be raised
A written demand to the servicer
Many problems are resolved by a clear letter that identifies the violation, cites the dates and documents, and asks the servicer to postpone the sale and correct the error. Federal rules also let you send a notice of error, which the servicer must investigate and answer.
Court action before a sale
If a trustee's deed has not yet been recorded, a homeowner can ask a court for an injunction to stop a foreclosure based on a material HBOR violation. The injunction lasts until the servicer corrects the problem.
After a completed sale
Once the trustee's deed is recorded, the remedy is generally actual economic damages, with enhanced damages possible where the violation was intentional, reckless or willful. A court can also award the prevailing homeowner reasonable legal costs. Servicers are not liable for violations they corrected before the deed was recorded. The broader picture of post-sale claims is covered in wrongful foreclosure in California.
Regulatory complaints
Complaints can also be filed with state and federal regulators that oversee mortgage servicers. These do not stop a sale on their own, but they create a record and sometimes prompt a closer look.
Using HBOR alongside other foreclosure defenses
HBOR is often one tool among several. A homeowner may raise an HBOR issue while also applying for a modification, or file Chapter 13 bankruptcy if the sale date is too close for a court hearing. The Somal Law Firm handles foreclosure defense, loan modification and mortgage disputes for homeowners in Pleasanton, Dublin, Livermore, San Ramon, Danville and across Alameda and Contra Costa Counties. Attorney Bob Somal can review your notices and servicer correspondence and explain whether an HBOR claim is realistic in your situation. Call (415) 754-0115 to schedule a free consultation.
Frequently asked questions
Does HBOR apply if I rent out my home?
Generally no. The main protections cover owner-occupied homes used as the borrower's principal residence.
What if my servicer never called before the notice of default?
If the declaration in the notice of default says contact was made and it was not, that may be a violation. Keep your phone records and mail, and have an attorney review them before the sale date.
Can HBOR force my lender to modify my loan?
No. It requires fair process and timely decisions, not a particular outcome.
Is there a deadline to act on a violation?
The most effective remedy, an injunction, is available only before the trustee's deed is recorded, so speed matters.
The protections in the California Homeowner Bill of Rights are strongest before a sale. Call (415) 754-0115 to schedule a free consultation with Bob Somal, and have your notice of default, any notice of sale and your servicer letters on hand. You can also write to us through our contact form. We will tell you plainly which protections apply and what can be done next.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.