California Foreclosure Prevention Act goes into effect tomorrow

The state of California is imposing a 90-day moratorium on all foreclosures as part of the new California Foreclosure Prevention Act that goes into effect tomorrow.  The law requires that lenders prove they tried to modify a borrower's loan before initiating foreclosure proceedings. From the San Jose Mercury News: The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing. But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled. The highlights of the law are (from California As