California Law Postpones Foreclosure Process
As of June 15, through December 31, 2010, the "California Foreclosure Prevention Act" amended the foreclosure process to provide additional time for borrowers to work out loan modifications. Civil Code Section 2923.52 now requires that an additional 90-day period, to allow the borrower and lender (mortgage loan servicer) to pursue a loan modification to prevent foreclosure of loans which meet the following criteria:
* The loan was recorded during the period of January 1, 2003, to January 1, 2008, and is secured by residential property.
* The loan is the first mortgage or deed of trust that the property secures.
* The borrower occupied the property as the borrower’s principal residence at the time the loan became delinquent.
* The notice of default has been recorded on the property.
Now for the red tape: the law also provides that a lender (mortgage loan servicer) who has implemented a comprehensive loan modification program may file an application for exemption from the requirement of adding 90 days to the foreclosure process. As most lenders have been delaying their foreclosure process, it is anticipated that most lenders (loan servicers) will apply and receive, the exemption thus ultimately the foreclosure process timeline will remain unchanged.
Categories: Foreclosures
Tags: California Foreclosure Prevention Act Another Foreclosure Postponement
I feel like what the government and Obama promised just is not happening. The whole plan was to prevent over 4 million home owners from losing their homes. I don't know where these 4 million are. There are huge neighborhoods by my house that are almost all facing foreclosures and they say that the banks just were not helping them prevent this but they were just covering their bases. Well if that is what is happening what happened to the huge bail out the government gave the banks to prevent this?
My friend was recently facing foreclosure and he went through http://www.Carrotpeel.com with an on staff attorney to help him out. He did not have any luck with the bank and he said they were able to work with the banks for him and save his home by lowering his monthly payments.
I hope there are some people out there who are having luck with the banks and that some of the stimulus money was spent like it was suppose to and not big corporate bonuses.
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you hit the nail right on the head!
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I agree. My neighborhood is the same. Just in our 50 unit complex, we have 13 of them going into or have gone to foreclosure. My good friend tried to modify her loan but she had no luck because she lost her job. Then she paid an attorney and they were not successful. Then she had an agent do a short sale. After a few months and no offer she found a group of investors that bought her house.
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Postpone the foreclosure process is amazing
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This is not actualy what we've expected from our government and president.
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I'm not surprised they are all applying. The lenders are concerned about their bottom line and probably that the problem is too massive to fix nationwide. I just don't see the reasoning behind creating an Act to help people and then give lenders a way around it. It's a great way to get people to stop taking the government seriously.
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