The housing crisis has hammered California: Although mortgage delinquencies and home repossessions have eased, more than 362,000 California homes were in foreclosure or seriously delinquent as of March 31, Mortgage Bankers Assn. data show. About 30% of all California homes with mortgages would not be able to command a sales price high enough to pay off the mortgage, according to research firm CoreLogic.
If the bills had been law a few years ago, they would have saved many homeowners much time, anxiety and heartache, said Rose Gudiel, who knows the problems all too well. The state worker from La Puente ran into unexpected financial difficulties in 2009 and fell slightly behind on her mortgage payments.
For three years, Gudiel said, she tried to get a loan modification but couldn't get a straight answer about her status. She received a foreclosure notice in early 2011 but refused to vacate her home. The bank granted new terms only after Gudiel, backed by activists with the Alliance of Californians for Community Empowerment, made the news by getting arrested during a protest.
Gudiel, 35, said she can afford to stay in her three-bedroom house, where she lives with her parents and brother, now that her monthly mortgage payment has dropped to $1,800 from $2,400.