California Foreclosure Prevention Act

On February 20, 2009, Governor Schwarzenegger signed ABX2 7 and SBX2 7, which established the California Foreclosure Prevention Act. The California Foreclosure Prevention Act modifies the foreclosure process to provide additional time for borrowers to work out loan modifications while providing an exemption for mortgage loan servicers that have implemented a comprehensive loan modification program. Civil Code Section 2923.52 requires an additional 90 day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section.

A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52. Approval of this application provides the mortgage loan servicer an exemption from the additional 90-day period before filing the Notice of Sale when foreclosing on real property as designated by this Section.

Application for Order of Exemption

Application for Order of Exemption from Civil Code Section 2923.52(a) California Foreclosure Prevention Act

Consumer Information

Mortgage Loan Servicers who have been granted an exemption

Exemptions under the Division of Corporations

Exemptions under the Department of Business Oversight

Exemptions under the Department of Real Estate


The Office of Administrative law filed the emergency regulations with the Secretary of State on June 1, 2009. The law becomes operative on June 15, 2009.