In February of 2009 as part of the California budget package, California State Senator Ellen Corbett a Democrat from San Leandon with good intentions added a 90 day foreclosure moratorium to the bill. This will effect owner occupied mortgages that went in place from January 2003 and January 2008.
I have read this information and it seems like there is lots of wiggle room in the bill that makes it so the lender can ignore the intent of the law if they wish. All they need to do is prove that they have a “Loan Modification Program” in place.
As a Realtor my job is to aid people buy and sell property. When I look at the new California Moratorium and try and reconcile it with President Obama’s “Foreclosure Alternative Program” I see a possible avenue of communication to demonstrate to the lender a Short Sale with Marketing time is the correct way forward. After all the Presidents Plan has incentives that the California Plan does not. I guess the simple approach here is most of my client’s would find the Federal Plan more to their liking, so way not request the Federal Plan. The Federal Plan came out after the California Plan did.
No one and I mean no one benefits from empty properties, swimming pools turning green and angry homeowners taking their frustration out on the property. Calm heads need to prevail, good can be found in almost everything. This is a time when someone (a Realtor) aware of the entire picture needs to be consulted. I hope Californians quickly come to know about the Presidents plan and focus on getting relief under that program.
I have talked to lenders who are so busy trying to do things the old way they do not even know of the incentives the President has offered to the lenders to attempt a “Short Sale”. Again I will say talk to a Realtor, ask me for a referral to someone if your out of the San Diego County Area. But above all else stay calm, your family and loved ones are counting on your sound judgment.
The author of this article is George Kenner, he is a Broker Associate with 19 years of Real Estate Experience in Southern California. You can contact him at Short Sale Nurse. Com George believes that it is not the books in the Library but what you do with all the information.