Legislation attached to the long delayed California budget halts foreclosures on family homes in a move designed to accommodate loan modifications.

According to the Legislative Analyst, the bill

• prevents issuance of a notice of sale under CA foreclosure law for an additional 90 days beyond the statutory reinstatement period
• applies only to first mortgages on homes that are the primary residence of the borrower when the default occurs
• covers only loans recorded between 2003 and Jan. 2008
• exempts servicers who have a qualifying loan modification program in place

From my perspective, the standards in the bill for a qualifying modification program are not very high and there is no requirement that  they are applied in a way calculated to actually modify the loan.

But half a loaf is better than where we are today.