The gov is already trying to take care of seconds, as was posted on this thread
Also – it would have been nice if Mr. Mortgage would have mentioned SBX2 7 Senate Bill in California (especially since I emailed him)
Excerpt:
SB 7, Corbett. Residential mortgage loans: foreclosure.
Existing law requires that, upon a breach of the obligation of a
mortgage or transfer of an interest in property, the trustee,
mortgagee, or beneficiary record a notice of default in the office of
the county recorder where the mortgaged or trust property is
situated and mail the notice of default to the mortgagor or trustor.
Existing law provides that, after not less than 3 months after the
filing of the notice of default, the parties described above may give
notice of sale, stating the time and place of the sale, as
specified.
This bill, until January 1, 2011, and only with respect to
specified loans that were recorded between January 1, 2003, to
January 1, 2008, would prohibit a mortgagee, trustee, or other person
authorized to take sale from giving a notice of sale for an
additional 90 days if the loan at issue is the first mortgage or deed
of trust that the property secures, the borrower occupied the
property as his or her principal residence at the time the loan
became delinquent, and the notice of default has been filed
So in conclusion, though I know there’s a tsunami of foreclosures on the horizon and we’re already thrashing about in the surf, it remains to be seen. I’ll just keep monitoring my little corner of the world.
Edit – I was trying to find the thread here on Piggington about this bill.
Other excertps:
Lowers rates AND
(D) Reduction of principal.
This section shall remain in effect only until January 1, 2011, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2011, deletes or extends that date.
The saving grace:
Nothing in this section or Section 2923.52 shall require a servicer to violate contractual agreements for investor-owned loans
or provide a modification to a borrower who is not willing or able to pay under the modification.
As if someone won’t lie and say they are not investors – and who the heck won’t be able to pay if their principle and interest is reduced.
