Only in California: A Ballot Proposal to Prohibit Foreclosures and Shut Down the Mortgage Industry

Here is some of the language below from a ballot proposal in California called the "Foreclosure Modification Act," scheduled to go on the November 2012 ballot if supporters get the required minimum 800,000 voter signatures.  It was approved in late July by the California attorney general for signature collection.

• Makes home ownership a fundamental right for every Californian.


• Prohibits lenders from foreclosing on any California citizen's personal home.


• Requires lenders to assist California borrowers not making payments on home loans due to financial hardship or illness.


• Requires lenders to reduce mortgage principal to reflect any drop in local property value of more than 10 percent, and to reschedule payments, reduce interest rates, and/or refinance without new credit review.


• Requires lenders to refinance home loans at a minimum cost within 45 days of request if loan has been maintained for three years.


• Provides back property tax assistance to homeowners from local governments (counties, cities, townships, etc.)

Here's a news report in Business Law Daily about this citizen's initiative that would basically eliminate all new private mortgages in California.  

HT: Morganovich