California bill ABX2 7

[jberry]

I just heard of this bill passing in California I tried to understand it but am not sure.

Does this bill say that once the NOD is filed that their will be an additional 90 day (90 days more than the normal required) before a trustee sale?

California Legislation: ABX2 7 (Lieu): Residential mortgage loans: foreclosure.

Any clairification on this is greatly appreciated.

Jberry

[The Professor]

I don't see it as having reached the point of being a law (completed its way through the legislative process). I'll check with my daughter on its status (she is a legislative aid in one of the senator's office), and give you more information.

Daniel

[cdmosaic]

According to this site it was signed into law on the 20th.

Schwarzenegger Signs 32 Bills Into Law

Schwarzenegger Signs 32 Bills Into Law - Politics News Story - KCRA Sacramento

[cdmosaic]

Found this -

ANALYSIS : California's non-judicial foreclosure process
requires a mortgage loan servicer to wait at least three
months between filing a notice of default and issuing a
notice of sale. As amended, this bill extends that time
period by 90 days for owner-occupied homes where the first
loan was recorded between January 1, 2003 and January 2,
1008. A mortgage loan servicer may seek an exemption from
the additional 90-day time period if the servicer has a comprehensive loan modification program.

So as there is always a loop hole - what if you got a loan mod but it sucks and you default anyway? Does that mean you are exempt from this extension? Do you feel that they right this stuff so you are forced to get a lawyer to interpt it????

[jberry]

Originally Posted by cdmosaic

Found this -

ANALYSIS : California's non-judicial foreclosure process
requires a mortgage loan servicer to wait at least three
months between filing a notice of default and issuing a
notice of sale. As amended, this bill extends that time
period by 90 days for owner-occupied homes where the first
loan was recorded between January 1, 2003 and January 2,
1008. A mortgage loan servicer may seek an exemption from
the additional 90-day time period if the servicer has a comprehensive loan modification program.

So as there is always a loop hole - what if you got a loan mod but it sucks and you default anyway? Does that mean you are exempt from this extension? Do you feel that they right this stuff so you are forced to get a lawyer to interpt it????

It also makes you wonder what they consider a comprehensive loan modification program?

Juls

[dedwards]

Wow this is a new one on me. I sure hope it means that I get another 3 months. I will be following this one and doing some research .

[Catherine]

Am I understanding this correctly? There will be an additional three months on top of the three months and twenty days I heard was the timeframe once you receive your NOD? My loan servicer are lying snakes that want to foreclose. If there is not a third party that has the power to force them to do right by the customer I would bet my last dollar they will figure out a way to pretend to follow the loop hole's long before they will modify my loan to be affordable. I saw our Govenor on TV this morning. He made mention of an agreement he made with subprime lenders to streamline loans in California before they adjust. That was in Nov. 2007. My lender agreed, however they ignored that and for the life of me I have yet to see consequences in place when they don't follow agreements. Thank you for letting me vent here, Catherine

[The Professor]

Here is the email discussion between me and my daughter about this legislation (note that we have lively discussions relating to our political views).


Daniel:

What is the status of this bill? I don't understand in reading this what is going on. I do understand that it is an attempt to delay foreclosure on residential property an additional 90 days. Frankly it doesn't make a lot of sense to me. It is sort of like crapping in the toilet and then deciding not to flush it for an hour longer than you normally would. Yeah, I know a fat *** Republican view. Oh well.......

http://www.aroundthecapitol.com/Bills/ABX2_7/

Daniel's Daughter:

It is a token bill, essentially. Whatever provisions included will later have to be amended to conform with the the federal mortgage program the Obama Admin is creating. Most of the "good" lenders, by the way (credit unions, etc.) already have loan modification prgrams on the books and won't be subject to the 90 day extension. Your take isn't a fat *** Reep view, it's a rational one. Reeps, by the way, aren't doing such a good job on the "rational" these days (http://sacbee.com/latest/story/1644400.html).

The bill (AB 7), passed in the 2nd extraordinary session--some of the 40 budget bills passed this week were in the the 3rd extraordinary session--was signed by the Gov and b/c it was an urgency bill, it took effect immediately. You've got yourself a bill you don't like, congratulations.

Hope this answers your questions on this piece of legislation. Sorry if my metaphor offended anyone. But these high level discussions between a father and daughter sometimes require this sort of graphic presentation.

Daniel

[Catherine]

Thank you Daniel!!! This kind of talk I understand

[jberry]

Thank you Daniel,
One question is Aurora considered a good lender by standards? I am just asking because my loan is with Aurora and from what I can tell they have not been good about loan modifications.

Thank you,
Jberry

[The Professor]

Who knows. This is one of those wonderful pieces of legislation where there just isn't an answer. Good lender/Bad lender. Who decides?

Daniel

[cdmosaic]

Well, since I have long sense given up the hope that real help is forthcoming, I will take the extra 3 months, pocket the savings and say "thank you very much". However, Countrywide will probably request the exemption since they have a loan mod program (said with tongue in cheek) so we will have to fight for our extra 90 days or just be statisfied with the original 90.

Does anyone in the goverment actaully know how to do something helpful and meaningful? Who voted for these fools? - oh, right we all did.

Sorry I'm just disgruntled and disgusted. We'd be better off if they would just go away and let things sort themselves out.

[tryingtostay]

I saw this on another website, that Feb 20,2009, Assembly Bill #7 was passed (must have been in the budget?) and it gives an extra 90 days for homeowners in owner occupied houses to not pay. Any insight on this, Professor? Does this really give us non-payers an extra 3 months in our home? Or were they reading it wrong?

"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. The bill would exempt certain loans from this prohibition, including, upon order of the Commissioner of Corporations, the Commissioner of Financial Institutions, or the Real Estate Commissioner, as applicable, the loans of a mortgage
loan servicer, as defined, if the mortgage loan servicer applies to the commissioner for an exemption indicating that it has implemented a loan modification program with specified features and the commissioner concludes that the program meets specified requirements. The bill would permit a mortgage loan servicer to submit a revised application if its application is denied, and would permit the commissioner to revoke an exemption under certain circumstances. The bill would require the
commissioners to adopt regulations in this regard, as specified. The bill would require the Secretary of Business, Transportation and Housing to report to the Legislature 3 months after the first exemption is granted regarding the details of the actions on exemption of loans serviced by a mortgage loan servicer under a loan modification program and to submit subsequent reports every 6 months thereafter. The bill would require the
secretary to post specified information on the exemption program on the agency�s Internet Web site."

[The Professor]

Already discussed at California bill ABX2 7

Daniel

[tryingtostay]

somehow I missed that thread. Thanks Professor.
Maybe the mods can merge this into the other thread?

[sroseg]

I'm sorry Professor Shay, I'm new to forum/blogging protocol and I'm trying to contact you specifically with this question: if you accept a loan modification (not that I'm even close with Chase) do your loans then lose their "purchase money status" and become 'recourse.' I'm in California with an $650K first, 186K second used to purchase the home. Current estimated value of house $650K to $700K (LOL), if that.

[The Professor]

Originally Posted by sroseg

I'm sorry Professor Shay, I'm new to forum/blogging protocol and I'm trying to contact you specifically with this question: if you accept a loan modification (not that I'm even close with Chase) do your loans then lose their "purchase money status" and become 'recourse.' I'm in California with an $650K first, 186K second used to purchase the home. Current estimated value of house $650K to $700K (LOL), if that.

The short answer is no. To safeguard yourself be sure that you do not sign a new promissory note and deed of trust, but simply enter into a "modification" of the existing promissory note.

Daniel

[sroseg]

Thank you so much. We've been in the 'run-around' nightmare now for 3 months with Chase so nothing is imminent. I was extremely worried that about that detail in case yet more disaster befalls us in the future.

[jberry]

I found this article regarding the california bill ABX2 7.

State foreclosure moratorium has wide loopholes

I have not heard anything else on this bill. Has anyone else heard anything?

Thank you,
Juls