On February 20, 2009, Governor Schwarzenegger signed ABX2 7 and SBX2 7, the "California Foreclosure Prevention Act" which modifies the foreclosure process to provide additional time for borrowers to work out loan modifications while providing an exemption for mortgage loan servicers that have implemented a comprehensive loan modification program. Civil Code Section 2923.52 requires an additional 90-day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section.
A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52. Approval of this application provides the mortgage loan servicer an exemption from the additional 90-day period before filing the Notice of Sale when foreclosing on real property as designated by this Section.
Below is a timeline for the adoption of regulations under this new law. The new law will be operative 14 days after the issuance of regulations. As set forth in this timeline, the anticipated operative date of the law is June 15, 2009.
The Application for Order of Exemption from Civil Code Sction 2923.52(a) California Foreclosure Prevention Act is available on the DOC website.
Real estate licensees may file this application with the DRE at the following address:
Foreclosure Exemptions - Department of Real Estate
P.O. Box 187007
Sacramento, CA 95818-7007
Applications may also be submitted by e-mail to foreclosures@dre.ca.gov.
On June 15, 2009, the law will become operative.
find the article at: http://www.car.org/tools/smart/new/foreclosurepreventionca/
