What Does the Moratorium Mean for Orange County?


Foreclosure Moratorium Orange County
The
OC Register asks, “Will the
moratorium ending impact south coastal O.C. in any way?” The 90-Day Moratorium was pushed into law by the state of California to help slow the flood of
foreclosures hitting the market and encourage lenders to work with families to keep homeowners in their homes longer.   The Moratorium ends in September.

The OC Register turned to radio host and lender Norm Bour to answer their question, “Like many other  legislative mandates meant to put “pressure” on lenders to cooperate fully with troubled homeowners, I don’t think this carries a lot of weight.  Interestingly enough, many lenders are willingly now trying to cooperate and negotiate something with the homeowner that ‘makes sense.’” One of the things lenders are opening up to that ‘make sense’ are short sales.   According to the Real Estate Blog, short sales make sense for
investors because they “
are not paying off the existing loan nor making up the back payments” and are an equally good move for people wishing to live in their newly purchased home because “Sellers don’t need to be in default for a short sale to occur.” Which means the home is likely to be better cared for than a foreclosure.

Minda
Reves is a freelance blogger for SHORTsense.com

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