CA announces 3 months free rent for defaulters

No they didn't actually word it that way, but that's what the new law will amount to in most cases where it applies. From the Sacramento Bee:

After more than 365,000 California foreclosures since early 2007, the state's long-awaited 90-day foreclosure moratorium law goes into effect Monday. But it doesn't mean foreclosures will stop. The law goes into effect as lenders are ramping up repossessions following expiration of earlier moratoriums, according to housing trackers.

Lenders can exempt themselves from the delay by complying with the Making Home Affordable Program a loan modification program that includes the eligibility requirement "You have income sufficient to support the new mortgage payments", so it's unlikely to benefit anyone who has either lost a job or relied on an unrealistic stated income to qualify for the original mortgage.