90-Day Foreclosure Moratorium in California

SACRAMENTO, Calif. (AP) - California is imposing a 90-day

moratorium on housing foreclosures under a new law that takes

effect Monday.

The law is expected to make lenders try harder to keep borrowers

in their homes. Loan companies must prove they tried to modify the

delinquent loans before they can begin foreclosing.

But supporters acknowledge the California Foreclosure Prevention

Act won't stop thousands of foreclosures from eventually happening.

There have been more than 365,000 foreclosures in California since

early 2007, with many more already scheduled.

The bill passed in February is similar to the Obama

administration's Making Home Affordable Program that began in

March.

Both encourages lenders to cut interest rates or rewrite loans

to affordable levels.

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Information from: The Sacramento Bee, http://www.sacbee.com

(Copyright 2009 by The Associated Press. All Rights Reserved.)

AP-NY-06-13-09 1952EDT