SACRAMENTO — In an attempt to combat foreclosures, Gov. ArnoldSchwarzenegger has called for a 90-day moratorium on foreclosures.Lenders who can prove that they have an aggressive mortgagemodification program in place would be exempted.
He also proposed loan modification guidelines of 38%debt-to-income ratios achievable through interest rate reductions,40-year loans and the deferring of unpaid principal balances to theend of the loan term so that borrowers can repay that amount uponthe refinancing or sale of the property.
California officials expect such actions to reduce homeownerpayments by as much as 30%.
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