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What Happens When Mortgage Servicers Fail to Assign a Single Point of Contact.

What Happens When Mortgage Servicers Fail to Assign a Single Point of Contact

Section 2923.7 of California’s Homeowner Bill of Rights (HBOR) requires mortgage servicers to assign a single point of contact to borrowers in the foreclosure process. The stakes are particularly high when the property in question is one’s childhood home, a repository of memories and emotional significance. What occurs when mortgage servicers fail to adhere to this provision? This article delves into a hypothetical scenario in which a homeowner risks losing their childhood home due to foreclosure, while being denied the assignment of a single point of contact as mandated by law.

Hypothetical Situation

Meet Jane, a homeowner grappling with the harsh reality of unemployment and subsequent financial hardship. Facing mortgage delinquency, she has received a notice of default from her mortgage servicer, BigBank, initiating the foreclosure process. This situation is especially distressing for Jane, as the property in question is not just any house—it’s her childhood home where her parents also reside. Despite her proactive efforts to explore foreclosure prevention alternatives and engage in loss mitigation with BigBank, she has been met with bureaucratic hurdles and inconsistencies, largely due to the servicer’s failure to assign her a single point of contact as required by Section 2923.7. This lack of a centralized communication channel exacerbates the complexity and stress of the foreclosure proceedings, making it difficult for her to navigate the legal landscape effectively.

Legal Consequences for the Servicer

Failure to comply with Section 2923.7 can expose mortgage servicers to legal repercussions:

  • Injunctive Relief: Prior to a trustee sale, the borrower may seek an injunction to halt the process.
  • Economic Damages: After a trustee sale, borrowers can recover actual economic damages incurred due to non-compliance.
  • Statutory Damages: Intentional, reckless, or willful violation can result in the greater of treble actual damages or $50,000.

Steps Jane Could Take

  • Document All Interactions: Jane should keep a record of all correspondence and communication attempts with BigBank.
  • Consult a Foreclosure Attorney: Legal advice is crucial for understanding rights and possible remedies.
  • File for Injunctive Relief: If she is still in the pre-trustee’s sale stage, Jane can seek to halt the foreclosure process.
  • Claim for Damages: If foreclosure is completed, Jane can file a lawsuit for actual economic damages and wrongful foreclosure.


Section 2923.7 serves as a critical protection for homeowners facing foreclosure. In our hypothetical case, the mortgage servicer’s failure to provide a single point of contact could result in legal consequences, including the possibility of saving her home and obtaining economic damages and an injunctive relief for Jane.

This article is intended for informational purposes only and does not constitute legal advice. For any questions regarding Section 2923.7 or other foreclosure-related concerns, consult a qualified foreclosure attorney.