To slow the foreclosure process down in California, last February Governor Schwarzenegger signed ABx2 7 (Lieu) also known as the Foreclosure Prevention Act which went into effect on Monday 5/15/09.

The Act adds 90 days onto the time period between when homeowners default on a loan and when their home can be repossessed in foreclosure. Banks can avoid the 90-day holdup by having a comprehensive program in place to make mortgages more affordable by reducing the interest rate, extending the loan term, or reducing or deferring some of the principal.

Foreclosure freeze prods banks to modify loans [SF Gate]
Governor Signs Lieu Foreclosure Prevention Act [Ted Lieu]