California Calls for 90 Day Moratorium on Pending Foreclosures - Will it Work?
By Veena Grover, Fremont Realtor: Homes for Sale in Fremont & Union City
(Re/Max)
As part of a proposed economic stimulus package, Gov. Schwarzenegger proposed a 90-day freeze on pending foreclosures in California. According to MDA DataQuick, California had 80,000 foreclosures in Q3 2008, so the proposal by Gov. Schwarzenegger is meant to slow down the pace and provide homeowners with more time to find and re-finance with other, more affordable loans. However, as an incentive to provide more affordable loans, lenders can avoid the 90-day freeze under the plan if they proved they were actively rewriting loans so that homeowners could afford to make lower payments and avoid foreclosure. From a Bay Area perspective, while I applaud the government’s effort to call for a “cooling off” period from the time a homeowner receives a default notice from a bank, in terms of actu...
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