"GlobeSt.com asks, "Why do you think California's foreclosure policy was so effective?"
Stuart A. Gabriel, a professor of finance and director at the UCLA Ziman Center for Real Estate, says, "It was effective because it did not require the borrower and the lender to agree on anything or even to negotiate with one another. It simply imposed delays on lender foreclosure activity, it made foreclosures more onerous to lenders and it also imposed moratoria on those lenders that failed to enact comprehensive and broad-based mortgage modification programs. Rather than getting into the mortgage-by-mortgage negotiation that was associated with the federal program, the California program sort of treated everyone. It set up a whole bunch of restrictions that in essence incented mortgage modifications and reduced foreclosures..."
[GS: 4/19/17]
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