California Puts 90-Day Hold on Foreclosures

June 16th, 2009

The Titanic is sinking, start bailing water with your martini glasses.

Via: Los Angeles Times:

California is imposing a 90-day moratorium on housing foreclosures under a new law that took effect Monday.

The law is expected to make lenders try harder to keep borrowers in their homes. Lenders must prove they tried to modify the delinquent loans before they can begin foreclosing.

But supporters acknowledge the California Foreclosure Prevention Act won’t stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.

The bill passed in February is similar to the Obama administration’s Making Home Affordable program that began in March.

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