Proposed Legislation to Curb California Foreclosure Homes

By: Joseph Smith


California legislator Ted Lieu is proposing a law that would require mortgage lenders in the state to provide a 120-day moratorium for foreclosures. Prior to this legislative proposal, Mr Lieu filed the California Prevention Act, a state law that would channel assistance to foreclosed homeowners from the Wall Street. State legislation is aiming to give homeowners breather through loan reductions and modifications. In the coming months, the impact of the proposed legislation could be observed, if the laws are ratified and enforced.

It is not surprising why California is actively seeking and implementing measures to control the rising volume of California foreclosure homes. According to data released by property tracker RealtyTrac for October 2008, California is ranked as the fourth state in the country with the highest volume of foreclosed homes. The state has exceeded foreclosures in Colorado, Georgia, Michigan and New Jersey, but has remained lower in rank than Nevada, Arizona and Florida.

Data from the California Center for Responsible Lending office show that there are about 1,300 households that are exposed or at risk to foreclosures everyday. Analysts and market observers blame loose and relaxed lending practices for the surge in California foreclosure homes. When the housing downturn and the economic slump erupted, mortgage lenders were caught off guard and households were pressured to keep on repaying home loans despite unemployment, higher inflation and lack of liquidity.

California foreclosure homes are numerous. This is why there are more prospective homebuyers and home investors who are now swooning to snap up such dwellings. The piling inventory prompted a continuous decline in tag prices. Indeed, it is the best time to buy California foreclosed homes, which are very reasonably priced.

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Joseph Smith has been educating buyers on the finer points of California Foreclosure Homes purchase at ForeclosureSupport.com for over five years. Click here to visit and find more information on our Foreclosed Homes for Sale.

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