On Monday a new foreclosure moratorium on Monday in California was implemented. The idea is to encourage banks to modify mortgages to struggling homeowners.
In my opinion this will help many of the homeowners out there as well as the local real estate market by limited the number of distressed properties on the market that have helped to drive the real estate market down.
In the article in the SFGate on Monday Assembylman Ted Lieu, D-Torrance stated, “The goal is to compel banks to do systematic loan modifications across California to reduce our foreclosure rate, which is the highest in the nation. Until we slow that down, the California economy cannot recover.”
This law is most useful as a stick to supplement the Obama administration’s carrots to get loan servicers to adopt a much more systematic framework for doing loan modifications,” said Paul Leonard, director of the California office in Oakland for the Center for Responsible Lending. “It is a useful nudge to get more servicers to sign contracts to adopt the Obama modification plan.”
To read the complete article go to: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/16/BUIH187NE7.DTL