Help for Homeowners?

On Friday, a 90-day moratorium on home foreclosures in California was signed into law. Sounds great for struggling homeowners in this state, where foreclosure rates are among the highest in the nation, but is it everything it's cracked up to be?

According a San Francisco Chronicle story, it might not be. Under the new law, loan servicers can be exempted if they have mortgage modification programs in place that meet certain criteria. An example of one of the criteria includes "a deferral of a portion of the principal, lowered interest rates for at least five years or an extension of loan terms." Bottom line: There are still ways they can take advantage of loopholes in the law in order to foreclose.

The law is also more lax for lenders than federal programs. The California law says "a lender's modification program would have to include an adjustment in monthly mortgage payments 'targeted' at 38 percent of a borrower's income." President Obama put forward a plan that seeks to lower payments  to 31 percent of income.

Still, the bill, though flawed, is better than none at all.