SAN JOSE -- A 90-day state moratorium on housing foreclosures that goes into effect Monday could have a big impact on Santa Clara County. The California Foreclosure Prevention Act is expected to make lenders put more effort to keep borrowers in their homes.
In Santa Clara County, there were more than 1,300 notices of default filed during the month of April, according to Foreclosure Radar.
Under the law, the loan companies will be required to prove that they worked to make changes to the loan conditions before they can begin foreclosure procedures. The Act is similar to the Obama administration's Making Home Affordable Program, which began in March, in that they both encourage lenders to cut interest rates or rewrite the terms of the loans.
However, supporters of the law say the 90-day freeze won't actually stop thousands of foreclosures across the state from eventually taking place.
