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California, land of sunshine, Democrats, The Golden Gate Bridge and perfect weather is experiencing a few flies in the ointment this year. The Golden state has the same economy that the rest of us do, and for that reason, they’ve come into second place for the most frequent foreclosures in the United States.
One out of every 216 people received a foreclosure notice or pre-foreclosure notices, the statistics in April according to RealtyTrac. That’s definitely not a great average. So what can you do if you’re among those 200 odd people who got one?
The Foreclosure Prevention act, enacted in June of 2009 brings relief for many in California just when they need it most.The law was meant to promote the loan modifications that President Obama had hoped for, and to stem the rapidly rising tide of foreclosures in the state, second only to that of Nevada nation-wide.
“I proposed the California Foreclosure Prevention Act to further help families at risk of losing their homes to foreclosure,” said Governor Schwarzenegger. “Foreclosures not only devastate families, they hurt neighborhoods and depress the California economy and budget. The implementation of this Act paired with previous actions taken here in California and federally will go a long way in helping mitigate the housing crisis.”
More specifically, the California Mortgage Foreclosure Prevention Act halts a lender or mortgage service company from filing a notice to put the property up for sale for an extra ninety days, unless the lender has a comprehensive loan modification program in place that has been approved by regulators of the act.
What can you do to prevent California mortgage foreclosure? What help does California government mortgage assistance offer to you?
Some brief explanations and some assistance can be found here
In the terms of this new legislation, a comprehensive loan modification is one that will give you better terms, change the interest rate, amend your amortization, change your loan amount principle or give you other changes that will amount to your debt to income ratio being under the 38 percent that the Obama adminstration has prescribed as the best income to debt ratio.
“Loan Modifications are the best outcome for homeowners seeking to make their mortgage payments affordable,” said Department of Corporations Commissioner Preston DuFauchard. “There have been other resolutions to mortgage issues, including short term forbearance plans, but the modifications of terms that result in an affordable, sustainable payment is most likely to prevent foreclosure and preserve home ownership for tens of thousands of families in California.”
The Department of Corporations began tracking loan modifications in California in 2007 by surveying major mortgage lenders and servicers in the State. The monthly survey has shown an increasing trend toward more loan modifications, especially since the announcement of the Governor’s Subprime Mortgage Loan Agreement in November 2007. To view the latest loan modification survey results or find more information on the Governor’s Subprime Mortgage Loan Agreement, visit http://www.corp.ca.gov/press/news/SubprimeLending.asp.
If you are facing a California mortgage foreclosure, then its time for you to take some action now. The Federal Reserve Education site can also assist you in finding the programs that you need in the state of California, as well as California mortgage counselors.
The California Foreclosure Prevention Act also includes the following other changes in California, designed to offer you California government mortgage assistance.
$1.2 million public awareness campaign to provide assistance and education about all of the programs and the options that can help them to avoid foreclosure in California.
Established the Interdepartmental Task Force on Non-traditional Mortgages
Announced $5.6 million to help mortgage and banking industry workers laid off
Awarded $8 million to community based mortgage counseling providers around the state of California to help the residents of California avoid foreclosures.
In addition to the legislation that California has enacted, there are loan and mortgage counselors available to you in the state of California, that will offer help to you.
Counseling involved getting the right debt to income ratio, along with assisting you in gaining the cooperation of your bank. The state of California government help to avoid foreclosure is in place. If you’re facing a mortgage foreclosure or a pre-foreclosure, maybe it’s time to take a hard look at California government mortgage foreclosure assistance programs in your state. To find a counselor near you in California:
Don’t wait until you are past help. Get your chance at Government HuD approved mortgage counselors, or Government mortgage assistance now.
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