California is currently in the middle of a foreclosure epidemic, it has the highest number of foreclosed properties in the US. The Federal and California government are now urging banks and other mortgage holders to perform loan modifications.
The government of California now requires lenders to contact delinquent mortgage holders 30 days before filing the Notice of Delinquency. California Civil Code 2923.6 was enacted in July 2008 and requires lenders to help homeowners and accept California loan modifications in most foreclosure situations. The benefits of a loan modification can include lowering the interest rate, reducing the principle balance, extending the length of the loan and ultimately stopping the foreclosure process.
Experts agree that the California Loan bill and efforts at the federal level with Barack Obama’s Homeowner Affordability and Stability, $75billion dollar bailout, plan will help homeowners. By providing financial incentives to both the lender and the homeowner, up to $5000 worth, the new legislation has made now a better time than ever to pursue a loan modification in California.
What Californians need now is an understanding of what these all important laws will mean to them, if they are facing foreclosure. One often misunderstand point is that a homeowner does not need to be behind on their mortgage to pursue a loan modification.
How To Get A California Loan Modification:
There are many attorneys and loan modification companies who are willing, for a large fee, to help homeowners fill out forms and communicate with their lenders. These companies can charge from $1500-$10000 to perform often questionable work. Some are professional while some are simply scam artists preying on people in an unfortunate situation.
The easiest and fastest way to receive a loan modification in California whether your mortgage is held by Countrwide, Wachovia, Wells Fargo or anyone else is to do a loan modification yourself. There are excellent loan modification kits that provide you with everything you need to fill out the critical documentation required and walk you through the process 1 step at a time.