California Foreclosure Moratorium

California imposed a 90-day moratorium on housing foreclosures called the California Foreclosure Prevention Act, similar to the Obama Making Homes Affordable Plan that took affect on June 15, 2009. Unfortunately, it does not guarantee homeowners a loan modification and may do little to stop a trustee sale.

We recieve calls to our firm every day from homeowners who have tried to reach out for help under these plans and should qualify, but they are denied or turned away. In frustration, they have to hire an attorney to fight for them and their home.

Yes, the bill is definitely a ray of hope for some borrowers, but it is unlikely to stop or delay most foreclosures.

Though many lenders already have federal incentives to offer loan modifications, this new law will help delay foreclosure on some owner occupied residences, but who is watching and regulating? It seems that mortgage servicers left to their own device aren’t practicing what they preach.

According to the new law, lenders must prove that they tried to modify the delinquent loans before they can go ahead and begin foreclosing on them. If the bank does not find a resolution as to modifying the loan, the homeowner will still have 90 days until the bank can take their house. During this time, it should hopefully give homeowners a chance to figure out other options on their own.
 
But many people believe that the California Prevention Act will not be able to stop thousands of foreclosures from eventually happening, but it is one step towards a more systematic review of delinquent mortgages.
 
If you are one of thousands of homeowners facing foreclosure in California and feel like their is just no hope, please give the Fransen and Molinaro Law Firm a call at (888) 756-2652 today for a free consultation.

• July 24, 2009 -- How does a loan modification work?
• July 23, 2009 -- Foreclosure Attorney in California
• May 14, 2009 -- Slow Start to U.S. Plan for Modifying Mortgages
• May 14, 2009 -- Obama Administration’s Housing Fix
• May 13, 2009 -- Fed Casts Doubt on Govt Mod Push
• May 8, 2009 -- Fannie Mae to Tap $19 Billion in Treasury Capital
• May 8, 2009 -- Senate Passes Loan Modification Bill
• May 6, 2009 -- SC court halts thousands of home foreclosure sales
• May 1, 2009 -- Lender Requirements
• April 30, 2009 -- A Short Sale May Not Mean You’re Home Free