SACRAMENTO, Calif., June 14, 2009
Calif. Imposes Foreclosure Moratorium
New Law Taking Effect Monday Blocks Housing Foreclosures For 90 Days
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(AP Photo/Nick Ut)
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In-Depth Q&A: Mortgage Help New plan to allow lenders to alter delinquent loans more quickly.
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.
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