New Proposal Attempts to Stave Off Future Foreclosures

On Wednesday, Gov. Schwarzenegger made a proposal that will instate a 90-day freeze period for homeowners on the brink of foreclosure--basically, once a notice of default has been posted against them, their mortgages companies have to halt proceedings until they can prove that they have modified their loan processes to make it easier for people to stay in their homes. The goal is to inspire "aggressive modification programs" that will hopefully benefit both homeowners and lenders. The proposal still has to be passed by legislature.

Click here for the full story, published in Mercury News and written by Sue McAllister.