127,516 New Listings - Last update: November, 07 2009 - 08:11 AM EST
A new foreclosure law (Foreclosure Prevention Act) introduced in California does not hold out much hope for the sufferers. It has now been stipulated that the borrowers must postpone foreclosures for 90 days in those cases where both the parties have not sat down to try and modify the terms of the mortgage. The state law came into effect from Monday 15th June 2009. But Sen. Ellen Corbett (Democrat) warned that nothing will happen overnight. The people must have patience.
The lenders and servicers who are already involved in a modification programme are not included in the conditions of this new law. These programmes modify loans by bringing down the rate of interest for a minimum of five years, reduce part of the principal or defer it to a later date and extend the repayment period to a term of even 40 years.
Chris George of CMG Mortgage Services and also of Mortgage Bankers Association (California) said, “The vast majority of them are already in compliance with some regulation or requirement, either through federal laws or voluntary efforts.”
The lenders will automatically get a stay for 30 days when they ask for an exemption. During this time the officials of the state will find out whether the lending firm has a correct loan modification plan running. George added, “If they do not have a plan in effect, they will be (subject) to that 90-day moratorium.”
The spokesperson of ForeclosureRadar, Sean O’Toole thinks that the law will not have any real impact on the foreclosure scene. “It’s a law you could drive a truck through. All you have to do is put in a loan modification program.”
The director of Center for Responsible Lending based in Oakland, California, Paul Leonard thought that the law highlighted how the state was working in tandem with the federal government. Incentives are being offered to the lenders, the servicers and even the borrowers who take part in this programme. He said, “It’s a bit of a stick that will create incentives for the lenders and services to participate in the Obama plan.”
A spokeswoman from Corbett’s that as yet there are no details about how many will benefit from this new foreclosure law. The new law is applicable to those who have taken out first mortgages from 1st January 2003 to 1st January 2008 for homes occupied by owners.
Related Posts
- Foreclosure Con Artist in Jail
- Plans Afoot For Further Extension Of Foreclosures Prevenetion Umbrella
- HUD Will Plunge in with Renewed Zest to Tackle Foreclosure Problems
- Foreclosures Can be Instructive to Children
- Refinancing Plans May Save Millions from the Jaws of Foreclosure
3 Responses
[...] foreclosure crisis has dramatically changed California from being a “model and magnet for the nation” into an “irrational and dysfunctional [...]
[...] Foreclosures are affecting the owners of mobile homes as their lots fall into trouble. Each owner has a tale to tell. Richard Carle came to know about the plight of mobile home park that he and his spouse had known to be their home for 17 years only when a notice arrived telling him about increases in monthly water bills from 1st April. Angrily Carle started making phone calls. With one thing leading to another he finally contacted his lawyers who gave him the staggering news about the foreclosure. The lawyer asked him whether he knew that the park was in foreclosure. In his mid fifties, Carle was formerly a labourer. He survives on disability benefits. He shares with his wife, dogs, cats and birds a mobile home. Initial anger has now been replaced by his fear and worry about the future. Foreclosures had been filed in Franklin County Common Pleas Court during February against Mann’s Country Estates (Pickaway County) and three other communities in Columbus. It was not mandatory to inform either Carle or any of the other residents. [...]
[...] focusing on cleaning up the mess left behind in foreclosed houses. He is employed with Platinum Real Estate Professionals – a firm that specializes in foreclosed home repair. So far the worst one he has [...]