Dick Durbin, D-Ill., and Sen. Kirsten Gillibrand, D-N.Y., and cosponsored by Sen. Dianne Feinstein, D-Calif., Sen. Sheldon Whitehouse, D-R.I., and Sen. Patrick Leahy, D-Vt., seeks to protect homeowners. The mortgage foreclosure bill, which was introduced by Sen. Dick Durbin, D-Ill., and Sen. Kirsten Gillibrand, D-N.Y., and cosponsored by Sen. Dianne Feinstein, D-Calif., Sen. Sheldon Whitehouse, D-R.I., and Sen. Patrick Leahy, D-Vt., seeks to protect homeowners from foreclosure by giving them more time to negotiate with their lender. Ellen Corbett, a Democrat from San Leandro, was involved in the creation of California’s budget. 1, 2009 and Dec. 31, 2016 The moratorium will cover homes where the first loan was recorded between Jan. 1, 2009 and Dec. 31, 2016 1, 2004 The dates December 31, 2003 and January 1, 2004 represent the transition from one year to the next. This sentence states that something happened in 2008.
This law allows state regulators to exempt loan servicers from the foreclosure process if the lender has a mortgage modification program that meets certain criteria. This means that if you qualify, you can either have a portion of your loan’s principal deferred, or have your interest rates lowered for at least five years, or have your loan’s terms extended.
A lender’s modification program needs to adjust monthly mortgage payments to be “targeted” at 38 percent of a borrower’s income in order to earn an exemption to the new 90 day moratorium. This is not as strict as the standards that have already been set by some federal programs, like the Homeowner Affordability and Stability Plan that was announced by the Obama Administration last week. The assistance plan was created to help lower mortgage payments to 31 percent of income.
Ensure you have a moratorium in place
To receive the moratorium, you need to contact your mortgage service and inquire about the program. = You can also choose or contact a housing counseling agency that has been approved by HUD in California.
The law does not require lenders to grant loan modifications, even though they have a mortgage loan modification program.
Some people think that a moratorium is not needed because struggling homeowners and their lenders already have enough time to search for mutual solutions to help stop a foreclosure. This means that a family has 141 days from the first notification to the final sale of their home. There is no negative consequence to lengthening the amount of time involved.
This new California mortgage foreclosure moratorium will begin in late May 2009.