California Governor, Arnold Schwarzenegger signed into law a 90-day moratorium on home foreclosures on Tuesday. The foreclosure freeze bill will impose a 90-day moratorium on foreclosures in the state of California. The bill exempts lenders who have a loan modification program in place meeting the standards set forth in the bill.
One such mortgage servicing standard including the Homeowner Affordability and Stability Plan laid out by the Obama Administration last week, which sought to lower payments to 38% of a borrower’s income (higher than the 31% DTI standard in the Obama Administration’s plan.)
The California Legislature, as part of the recently-passed budget package, approved Friday, legislation SB2X-7 and AB2X-7, which provide for a 90-day foreclosure moratorium. The bill, introduced by Sen. Ellen Corbett, D-San Leandro, as a trailer to the California budget package, covers owner-occupied homes where the first loan was recorded between Jan. 1, 2003 and Jan. 1, 2008.
Mortgage bankers are naturally opposed to the bill. A letter of opposition from the California Bankers Association, and other financial trade groups said a foreclosure moratorium will create uncertainty, delay economic recovery and stifle home sales.
Beth Mills, spokeswoman for the California Bankers Association, said struggling borrowers and their lenders already have more than enough time to search for mutual solutions. A state law passed last year increased the required period from first notification to final sale by 30 days, to a total of 141. More time is not the silver bullet to every troubled loan, she said.
The foreclosure moratorium law will go into effect in late May.
[...] New Friends Chat! Freeze on California Foreclosures February 27, 2009 · Moe Bedard · Jump to comments California Governor, Arnold Schwarzenegger signed into law a 90-day moratorium on home foreclosures [...]
I have taken into my home a fire victim family rente out the room inorder to survive since being laid off from work in 9/08 and putting into my lender for a modification my my property value has dropped 200K and also put into the county of San diego for tax releif as being taxed over 200K more than value. Country wide lost my paperwork 3 times now and can’t get an answer out of them, asking for a 3% modification on my loan and it coud work to keep my home. all CWide does is run you around the bush and does nothing. I have 3800 to pay monthly for my mortage, taxes, and 70.00 a month Assn dues. the property value is 649K the original loan was 778. It has been since 9/08 that it was submitted for mod. They have lost my paperwork 2 of 3 times now. I was also taken advantage of bya Ca. contractors board a suite by a licnesed contractor New Season to the tune of 42K over a yr. ago and still waiting for the outcome on that, it has been determine that the contractor is liaable to repay. My assn want the work completed and we are tapped. Someone needs to stand up to these banks, and officials as they just donot adhere to the law. We have our live savings in this new home, and need an answer, what we are asking for is dueable. 3% for a fixed amount of time.
I have experienced the same run around the person above has. Lost papers no answers. Im 2 years into this now. I finally got an offer. However with all the late fees tagged on its 62,000 more on the loan. At that rate if I were to accept I have 134000 negative equity. It would take years of my life to even be in a postion to sell and I would walk away with 0.
So what happened to reassing the value of our homes? That would drop payments dramaticaly and give us power again. The ability to move at some point in the future if needed etc. In 30 years a bank makes about 3 times the purchase price of a home. They are not really losing much.
My wife and I were scammed by New Leaf Modifications to the cost of $3,500 with no results .
I appears they are out of business now and all the phone numbers we have for their people are no good.
Needless to say I feel pretty stupid.