01 Jun 09 California Loan Modification & Mortgage Relief Law Updates

In November 2007, Gov. Arnold Schwarzenegger and several mortgage lenders announced a voluntary agreement meant to encourage loan modifications for borrowers facing foreclosure. Mortgage relief remains a top priority for legislators from the State of California.

SB 1137: Created a 30-day waiting period before lenders could file a notice of default; required lenders to maintain foreclosed properties; notification for renters in foreclosed properties.

AB/SB 7 (Second Extraordinary Session): Enacts a 90-day foreclosure moratorium, except for mortgage lenders and loan servicers that have entered into a loan modification program.

Local Lenders from Wells Fargo and Bank of America have reported a surge in FHA refinance applications and new home purchase inquiries for short sale and bank owner REO properties.