bank foreclosures, stop foreclosureIf you live in California and you are currently struggling to keep up with your mortgage repayments, help may soon be at hand. According to recent news, Governor Arnold Schwarzenegger has a new plan to encourage mortgage lenders to alter the terms of their home loans in order to help overwhelmed borrowers to avoid bank foreclosures. Governor Schwarzenegger proposes enforcing a postponement of three months for the bank foreclosure process for homes that delinquent mortgage holders are still living in. Lenders could avoid this postponement by providing evidence to show that they have implemented a revision program to try to help delinquent mortgage holders to stop foreclosure. The lenders would have to ensure that their modifications allowed borrowers to make payments that were not larger than thirty eight percent of their monthly income. Lenders could do this by reducing the monthly interest rate and extending the length of the loan. Governor Schwarzenegger’s plan has to be accepted by Legislature before it can come into effect. If the plan is implemented it could provide welcome relief for struggling borrowers. Furthrmore, a reduction in the number of bank foreclosures would help the economy to recover in California.