California Adopts Moratorium On Home Foreclosures

Governor Schwarzenegger of California signed into law a 90-day moratorium on home foreclosures.  That’s great news for families struggling to keep their homes, but does it do enough?

A close examination of the law shows there are some significant loop holes for mortgage companies.  They don’t have to comply with the moratorium if they are offering modifications to home owners that meet certain criteria. .  According to some analysts, all that a lender needs to do is offer a deferment of some of the principal due until the end of the loan and a minimal interest rate decrease to qualify under the new act.  Once such a modification is offered, the lender can continue to foreclose regardless of this law.

 This may be a step in the right direction to slow the quickly rising number of foreclosures, but it’s unclear just how many houses this will save.  If you have a house in foreclosure, don’t trust this law to save you or even give you a 90 day postponement.  Consult a good consumer attorney knowledgeable in real estate and bankruptcy law.

Related posts:

1. California plan to avoid foreclosures
2. Where is Obama’s 90-day Foreclosure Moratorium?
3. Illinois Passes Foreclosure Moratorium Law