Did you know that California lenders must accept loan modifications? A law that was enacted in July of 2008 required lenders of residential loans in California to accept loan modifications in most foreclosure situations. This law assists consumers and homeowners quite a bit, making a California home loan modification much easier to achieve. This law applies to all mortgage loans made from January 2003 through December 2007; obviously these are the years that the most people signed up for subprime mortgages. Subprime mortgages have adjustable interest rates which cause the monthly payments to change, which has caused many foreclosures throughout the country. The monthly payments double and sometimes triple, crippling the borrower’s ability to pay. What many folks are just now discovering is that mortgage loans were designed in such a way that people were comfortable with risk. In the past, California home loans were designed to limit risk as much as possible. What has made California home loan modifications a necessity for most people is that mortgage companies grew more comfortable with risk. The subprime mortgages were packaged into larger securities sold to investors, hoping that tying risky mortgages to less risky investments would minimize the total risk. Unfortunately, now the entire economy is poisoned by these subprime mortgages.
All is not lost, however. California home loan modifications can help homeowners stay in their houses, giving them an opportunity to avoid foreclosure. The law that was passed, California Civil Code 2823.6 puts the onus on lenders, requiring servicers to accept loan modifications with borrowers. Having a qualified California loan modification attorney on your side can help you navigate the challenges and difficulties of keeping your home.
If you were to attempt to negotiate with lenders without the help of a California home loan modification attorney, you’d be like a lamb in a lion’s den. Lenders obviously aren’t going to tell you the truth; they aren’t going to tell you that they’re bound by the law to negotiate with you, or that you have multiple options open to you for keeping your home. A California loan modification company can represent you, using their knowledge and experience to negotiate a new mortgage loan that sets a new interest rate, adjusts the length of time for paying off the mortgage, changes the loan amount or alters some other aspect of the loan that will ultimately lower your monthly payment. Affordable monthly payments are the ultimate goal of a home loan modification, and a loan modification specialist can help you achieve that.
The law that was passed allows homeowners to have a weapon for keeping their homes as well as a shield from foreclosure. In fact, if the lender is unwilling to accept the home loan modification, the borrower has the right to sue for specific performance or wrongful foreclosure in State Court.
California civil code 2823.6, in addition to federal government loan modification programs, could mean the difference between owning your home and having to walk away from it. These laws could help you avoid foreclosure, but only if you know about them and take advantage. A California home loan modification attorney will know and understand the laws, and a California home loan modification company can defend your rights and fight for your home. The Loan Modification Help Center is a great resource for knowing what laws can help you keep your home and how a California home loan modification company can be of service.
Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
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