Struggling Californian homeowners can breath a sigh of relief -- if only for three months.
A 90-day foreclosure moratorium is underway in the Golden State.
The law, effective June 15, 2009, is designed to get lenders to try harder to keep borrowers in their homes.
The Golden State is ground zero in sheer foreclosure numbers -- up to 90,000 combined default notices, scheduled auctions and bank repossessions are filed every month, more than any other state. The number represents nearly one in three foreclosure filings nationwide.
The moratorium applies to owner-occupied households; first mortgages or deeds of trust; loans recorded between Jan. 1, 2003 to Jan. 1, 2008; and mortgages that have no Notice of Default (NOD) recorded against the property.
Under the new law, loan companies have to prove they tried to modify loans of struggling homeowners before they can begin foreclosing. Otherwise, lenders must give homeowners the three month reprieve before they begin foreclosure.
In California, a loan modification program is one that modifies a borrower's loan terms by changing the interest rate, amortization schedule, principal loan amount, or other appropriate factors that results in achieving a 38 percent debt-to-income ratio for the borrower.
The California Foreclosure Prevention Act is somewhat compatible with efforts under the Obama Administration's MakingHomeAffordable.gov effort. The federal effort does, however, have provisions for modifying second mortgages.
Unfortunately for some homeowners, the law also comes with many exemptions, including:
• Lenders who have a mortgage modification program in place that meets state requirements for modifications aren't required to comply with the law.
• Lenders who can document that a modification will result in a greater loss than a foreclosure don't have to apply the moratorium to such loans.
• Loans purchased, serviced, or used as collateral by California Housing Finance Agency (CalHFA) aren't qualified for the moratorium.
• Loans where the borrower has surrendered the property, contracted with an organization to extend the foreclosure process, or has an open bankruptcy case are not eligible for the moratorium.
Perkins is the National
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Comments
I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I'm looking to sell because i am engaged and will be moving into my fiancee's home. Check www.obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.
It is estimated that Obama's plan could benefit 8 to 9 million homeowners from the new modification procedures. So how do you know you qualify for the Mortgage Modification? Check the website www.obamamortgage2009.blogspot.com
to see if you qualify. I was also in trouble and I am glad I did check it before I talk to my mortgage company and it helped - howardamin, California
Mr. President why are the banking,and loan company not making loans as you promised they would do for the american people we are all hurting and not getting any help. Time for them to answer to you for not helping us the little people that keep them in business, maybe we should boycott their business. Check www.obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html#comments
Check out www.obamamortgage2009.blogspot.com or obamamortgage2009.blogspot.com There needs to be a program for the elderly but not quite to retirement age for mortgage modification when the have lost their job during this particular recession. I made a decent wage because I put my time into a company and now have no job. I am looking at $10 - to $12 hr jobs after working all my life. You can't make a mortgage payment on that kind of money. I will eventually lose my home.
If anyone has had any luck with any of these companies, could you please post it for the ones that cannot find one to work with you. We've almost lost once and just got a second chance that want last long so I need to get something done now, so if anyone knows the right number to call, i am sure a lot of people that hasn't found them would appreciate it but check out www.obamamortgage2009.blogspot.com or obamamortgage2009.blogspot.com
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