Posted on 06/15/2009 7:07:21 PM PDT by TexAsia
SACRAMENTO, Calif.—California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday.
The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.
But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.
The bill passed in February is similar to the Obama administration's Making Home Affordable Program that began in March.
Both encourages lenders to cut interest rates or rewrite loans to affordable levels.
(Excerpt) Read more at mercurynews.com ...
I predict a record # of people in California will now not pay their mortgage for the next 90 days.
Followed closely by the largest mass of forclosers on record.
Great for Kaleeefornians - now they can go 3 more months without having to make a mortgage payment!
Foreclosures = affordable housing.
This will give the lender’s time to catch up on processing all the foreclosures they have in the pipeline already.
Lenders, please “try harder” to not take the property that is rightfully yours.
Just kicking the can a little farther down the road. BTW, a company that cannot book a foreclosure cannot book the loss... so that means that CA gets another quarter of higher corporate taxes than they are actually entitled to...
Why? - If the borrower never made a single payment what does the bank owe them? A huge (in the 80's) percentage of NINJa loans never made a single payment.
” A huge (in the 80’s) percentage of NINJa loans never made a single payment.”
No Income
No Job
no Assets.
And with those excellent qualifications in California you were able to get a loan for $700,000. No recipe for fraud there, noooo.
This delay will merely intensify the MASSIVE “second wave” of housing price collapses that are coming next year. My revised estimate is Q4 2010 to Q2 2011.
betcha it’s gonna be very difficult to get a home lone in california
Honestly, I don’t agree with the government doing this, and I am sure there will be some dandy impacts. However, right now, in a lot of areas, the mortgage lenders are stupid to take the houses. My ex-MIL is facing foreclosure (and yes, her bad choices played a part) in the Phoenix area. They have so many foreclosed houses with pools, that they are scared of West Nile problems, as the pools are neglected. Right now, she is taking care of her house (probably an exception), her yard, and keeping the pool maintained.
She has tried to modify the terms (even temporarily until she gets a new job) a few times, and they wouldn’t let her. She is waiting for them to give her a final date, but until then, she is better than a squatter.
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