Effective today banks in California cannot foreclose a mortgage without either renegotiating the loan or giving the homeowner three months notice.  This is a good thing because it will encourage lenders to either cut rates or rewrite loans to affordable levels, which may allow many Californian’s to keep their homes.  Lenders will have to demonstrate that they have tried to renegotiate the loan.

There have been more than 365,000 foreclosures in California since 2007, with many more already scheduled.