State of California to delay housing recovery and trap homeowners in a prison of debt

By | California, States

Clearly our legislators didn’t set out with the intent to delay the housing recovery and trap homeowners inside prison of debt, but that is the likely outcome of the “California Foreclosure Prevention Act” that was signed into law last Friday.

This law imposes an additional 90-day delay on the filing of a Notice of Trustee Sale unless the lender gets an exemption by implementing a loan modification program that meets the state’s requirements. You’d think that after the complete failure of SB1137 to do anything but delay the inevitable, the legislature would have learned that incentivizing loan mods through changes to the foreclosure process doesn’t work and would instead spend their time and energy focusing on things that might actually help.

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