Starting on the 15th of June 2009 California has a new 90 day foreclosure moratorium law take effect. Similiar to the bill, “Making Home Affordable”, Obama passed back in March.
This bill was passed to make lenders try harder to keep boorrowers (you) in their homes. The lenders must prove that they tried to modify any delinquent loans before starting the foreclosure process.
What this law does, in practical purposes, is add 90 days from the time that the Notice of Default (NOD) is sent to when they are allowed to file a Notice of Trustee Sale (NTS). In the past lenders are allowed to file the NTS 90 days after the NOD was filed, and now with the new bill there is an extra 90 days tacked on giving the homeowners 180 days after NOD before the NTS. There are a couple of provisions to qualify for this extra 90 days:
- the loan was recorded from Jan 1 2003 to Jan 1 2008
- this was the original loan used to purchase the property (not a refinance)
- the home is your primary residence (or was if you receive the NOD while you lived there)
The news is not all roses and cream however, some may even say that this bill is a joke. The lenders can petition for exemption from the bill, from what I can tell all they have to prove that they have a loan modification program in place.
Here is the list of which lenders are exempt from this legislation….. THE LIST
