Recent headlines may be causing confusion about the new California Foreclosure Prevention Act as a “90-day moratorium” and not telling the complete story.

In truth, the foreclosure process for certain owner-occupied residential first trust deeds has been extended by 90 days, effective June 15, but an exemption is available for lenders with comprehensive loan modification programs.

Under pre-existing law that went into effect in February, a lender must wait three months after filing a notice of default before it can file a notice of sale. The new California Foreclosure Prevention Act extended that time frame by another 90 days but may just be delaying the inevitable.

Read the complete story in the Mercury News