The california attorney loan modification Prevention Act, signed by Gov. Schwarzenegger, adds 90 days onto the time period between when homeowners defaulting on a note 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 mortgage more affordable by reducing the interest rate. Such programs must be approved by regulators.
The goal is to compel Banks to do systematic loan modification across California to reduce the foreclosure rate. California’s save my home rate is said to be the highest in the nation. Of course we have all read the stories of even seemingly rich celebrities losing their multi-million dollar mansions to foreclosure in recent months. The slowing down and stopping of foreclosures is seen in large part as the path back to economical stability in many states.
In the past few months, 15 lenders have agreed to implement the Obama plan, according to the Web site MakingHomeAffordable.gov. Government spokespersons have said that about 100,000 homeowners nationwide have been sent offers for trial modifications, a relatively modest number compared with the administration's goal of helping 3 million to 4 million homeowners to avoid foreclosure.
In California, the Department of Corporations will determine whether banks qualify for an exemption from the moratorium. About a dozen mortgage companies had applied as of last week, said department spokesperson Mark Leyes; they will now have a 30-day grace period while their applications are reviewed. A list of the participating banks will be posted on www.corp.ca.gov.
The department will monitor the Banks success rate regularly, to make sure that they have a program in place. Still, there is no guarantee in the law that anyone is going to get a loan workout. The hope is that http://www.callalms.com/loan-modification-news-blog/viewpost/95 will make a good-faith effort to make loans affordable and sustainable for homeowners. It is also the hope that homeowners in turn will be able to keep up with their new mortgage payments without undue financial strain. This in turn, will result in homeowners again feeling comfortable to start spending their money and pouring it back into the economy.
The California law, like the Obama plan, says that can determine whether a foreclosure or a loan workout is more cost-effective and can pick the cheaper option.
You can visit http://www.callalms.com to learn more about the laws and get free tips on how to succeed at your loan modification. If you want to get an immediate responce from an attorney backed loan modification firm based out of california please feel free to use the quick application that can be found at http://www.callalms.com/secure-online-application where you can do a secure online inquiry that will be followed up on within one hour by a professional.