Foreclosure moratorium
Many states, including California, have introduced a so called “Foreclosure moratorium”. This is basically where no foreclosure activity is allowed to take place for a specified period of time. California gave it a 90 day moratorium period back starting in June.
This has its ups and its downs. Obviously this will reduce the number of foreclosures for a short period of time, but all this really does is put a temporary band-aid on the problem. Homeowners and lenders could also use these 90 days to talk, negotiate, and come to agreements that do not end in foreclosure.
There will likely be no more moratorium’s for foreclosure’s anywhere in the U.S. anytime soon because the economy and the real estate seems to be coming back, slowly but surely.
The best way to fix the foreclosure problem that we have is not to put a temporary band-aid on any problem, it is to face the problem head on. It is for all sides to be reasonable and up front and get a deal done that benefits everyone.