Yesterday, June 15, 2009, was the start of a new program in California called the California Foreclosure Prevention Act. The main goal of this legislation was to encourage mortgage loan servicers to be more aggressive with their loan modification efforts to try to keep people in their homes. There is an additinoal 90 day period between the Notice of Default and the Notice of Sale in which the lender and homeowner can work out a loan modification. The law was passed in February but is just going into effect now.

There's a lot of confusion in the public about the full scope of what this law really does. I found a great article by David Gibbs, an attorney in San Clemente, California explaining this bill in detail and laying out a great timetable explaining the new process. I'm reproducing his timetable here, but encourage you to visit the original article and get all the details about this new law.