California Foreclosure Prevention

With the bi-partisan settlement that occurred in February, and while the California Board of Realtors hard at work, the California Bill of Rights has introduced a bill that will no longer allow banks to foreclose on homeowners who are actively trying to modify their home loans. According to http://www.scpr.org/news/2012/07/02/33069/california-lawmakers-ban-banks-from-foreclosing-on/, Attny Gen. Kamala Harris is trying to do more for homeowners that have fallen prey to lenders who are taking homes when attempting to get a loan modification. Hopefully this will set things into motion for other states as well as this is known in the industry as a "bait and switch", a practice that mortgage lenders use to make as much money as possible by agreeing to modify the loan, but foreclosing on the property before the modification is complete. With the foreclosure rates being higher in the first quarter of 2012 than the first quarter of 2011, and with California being the state with the 2nd highest rate of foreclosure in the U.S. at this time, this should turn the cards more favorably in homeowners favor. Way to go California!