Will the latest Foreclosure Moratorium make much of a difference in the long run? Will it give more options to Sacramento Area Homeowners?
With another highly publicized foreclosure moratorium starting here in California on June 15th; many buyers, sellers, and real estate professionals have wondered how big the impact will be on the housing inventory here in the Sacramento area.
It seems the impact has already been felt and dealt with.
Lenders and loan services that already have a comprehensive loan modification program in place are exempt from the law. So most banks, lenders and servicing companies, even if they did not have one in place originally, have put one in place since the law was written in February when The California Foreclosure Prevention Act was included in legislation was passed that approved the state budget. The moratorium started on June 15.
The law calls for specific programs and loans to be modified by lowering interest rates for at least five years, deferring or reducing part of the principal, or providing for up to 40 years to repay the loan.
“The vast majority of them are already in compliance with some regulation or requirement, either through federal laws or voluntary efforts,” said Chris George, president of San Ramon-based CMG Mortgage Services and a board member of the California Mortgage Bankers Association.