90-Day Foreclosure Moratorium – Will It Do Us Any Good?
June 16th, 2009 categories: Foreclosures
The 90 Day California Foreclosure Moratorium Started Yesterday! What does this mean for us? Only time will tell!
The California Foreclosure Moratorium Bill was passed in February. The purpose of the bill is to encourage lenders to rewrite loans and cut interest rates for consumers with the idea of making loans more affordable. This also means that consumers will have the opportunity to modify their loans and try to keep their homes or figure out other possibilities.
Will The Foreclosure Moratorium Do Us Good?
Will The Foreclosure Moratorium Do The Banks Any Good?
Will The Foreclosure Moratorium Do The Government Any Good?
Ultimately, we will have to wait and see what the effects of the California Foreclosure Moratorium Bill are. Here are some things to keep in mind.
- Housing inventory for market sales will decrease.
- Housing inventory for unpaid mortgages with banks will increase.
- The increase of housing inventory will make lending a challenge for them, as it will inhibit their ability to lend out money.
- Lenders will be encouraged to rewrite loans to make them more affordable and cut interest rates????
This California Foreclosure Moratorium Bill is supposed to make lenders cooperate more with consumers. Try calling your lenders and see if they cooperate with you. Most times you will find that the staff you are dealing with have no clue what they are doing and usually your phone conversation will last 1 – 2 hours minimum, you will be bounced around to 7-10 different people and will find that you will repeat the same story 7 – 10 different times. All this and you end up with an UN-modified mortgage and 2 wasted hours and a very stressed demeanor.
This may sound pessimistic but it is simply relaying the facts. Some people think that this new California Foreclosure Moratorium Bill will just delay the process of foreclosing and bundle up a lot more houses for the lenders to buy back at auction only to sell back on the real estate market at a 30 – 60%+ loss.
Time is money and the more time wasted will mean the more money lost for lenders.
How does this affect Sonoma County Real Estate? The same way it affects the rest of California…and unfortunately it is about as clear as mud at this point. the ultimate goal is a good one…to keep homeowners in their homes, help families, and help curb the slide of California home prices.
We have until September 15th, 2009 to await the blessed outcome and see if this experiment works. What the future holds we shall see.
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