The State of California rolled out a new foreclosure prevention Act this Monday.  This action brings into effect a ninety-day moratorium on home foreclosures.  Before implementing foreclosure, banks must prove they have tried to assist troubled homeowners modify loans. The new law is titled, "The California Foreclosure Prevention Act."  It is estimated there have been 365,000 foreclosures in California since 2007.

It is hoped some homeowners may be helped by this act via modification of their mortgages with reduced interest rates and other measures providing remedy.  However, some real estate experts suggest this act only works to delay the inevitable. For homebuyers, this development will further shrink the supply of bank owned properties, leaving "short-sales" as a primary source for home buying inventory. Click Here for a KCRA Channel 3 video report.