“Many distressed homeowners in California are underwater by more than 5% on their home loan, which makes them ineligible to apply for refinance assistance,” said Lieu, author of a state foreclosure moratorium law that Gov. Arnold Schwarzenegger signed last week.
What is the The California Foreclosure Prevention Act?
The California Foreclosure Prevention Act, known as SB 1137 is the first law in the nation to impose a foreclosure moratorium and encourage quality loan modifications. SB 1137, the new California foreclosure prevention act became fully effective on September 6, 2008. This legislation only applies to foreclosures on loans made between January 1, 2003 and December 31, 2007. It sunsets December 31, 2013.
Who’s money is paying for all this?
