In February the State passed a 90-day Foreclosure Moratorium that went into affect June 15. This law is intended to help those owner-occupied homes where the first loan was recorded between Jan. 1, 2003 and Jan. 1, 2008 from being foreclosed on. The law requires lenders to prove they have tried to modify the delinquent loans before they can begin foreclosing.
Under the law, however, Department of Corporations can grant loan servicers exemptions - allowing them to foreclose - if the lenders have a mortgage modification program in place that meets some combination of various criteria. Among them: a deferral of a portion of the principal, lowered interest rates for at least five years or an extension of loan terms. The exemption can take a month to complete, and during that time the lenders can continue to foreclose homes as usual.
You can read the bill in its entirety here.
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