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California Homeowners Can Stop Foreclosure with Loan Modifications, Forensic Loan Audits and Negotiated Mortgage Loan Modification Terms.
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14 Aug 10 Obama Mortgage Relief Success Challenged in California

California Lawmaker Challenges the Obama Administration’s Claim of Successful Mortgage Relief

Underwater mortgages, short sales and home foreclosures have taken their toll on the California housing crisis.  Ask the struggling local homeowners how the California loan modification process is going.  Yet the Obama Administration continues to  act as if property values are rebounding and we are out of the woods economically.  I’m not sure where the President is getting his news from, but California has not turned the corner yet on the housing crisis.

Most distressed homeowners will tell you that get approved for a mortgage modification is almost as difficult as it is to be approved for a California mortgage refinance.  Foreclosures have become a serious problem in most of California and the Federal loan relief simply has not been attainable for most homeowners in the state.

Qualifying for California Loan Modification Programs

A Democratic congressman has issued a letter to President Obama slamming Housing Urban Development Secretary Shaun Donovan for claiming in an editorial that California’s Central Valley has seen an improvement from the height of the subprime mortgage crisis.

California Loan Relief is in High Demand!

The scathing letter is a rare on-the-record criticism of the Obama administration’s policies from a Democratic lawmaker and reflects the frustration many in Washington are feeling over the federal government’s pace of efforts in providing mortgage relief struggling homeowners.

Rep. Dennis Cardoza, D-Calif., noted that the three biggest cities in his district are ranked in the top 10 of RealtyTrac’s foreclosure list and claims Donovan has a “fundamental disconnect” between the reality on the ground and the fairy dust the administration is spreading.”  Cardoza says that Donovan failed to note the delinquency rate in his district has risen to more than 16% when he touted the decline in foreclosure rates in the Central Valley.  “In most simple terms: things are not getting better in the Central Valley, they are getting worse,” he wrote.  “We’re not going beyond the comments the secretary made in his editorial,” HUD spokesman Jerry Brown told FoxNews.com.  The White House did not respond to a request for comment.

In the opinion article, published Wednesday in the Fresno Bee, Donovan declared that “thanks to comprehensive efforts of the Obama administration and local leaders, we see strong evidence that the region’s housing market is improving.”  Donovan held up Central Valley as an example where the administration’s efforts have led to a decline in foreclosures. He noted that nearly every part of the Central Valley “has seen a substantial decline in foreclosures since this time a year ago.”  “This improvement is the result of, in large part, the array of targeted tools the Obama administration has provided to communities in this region, to the state and to homeowners to begin stabilizing the housing market,” he wrote.  But Cardoza argued that the administration’s primary housing programs – the Home Affordable Modification Program (HAMP) and the Neighborhood Stabilization Program (NSP) – “have not been effective in delivering aid to the hardest-hit communities.”  “Instead of taking ownership for these failures and taking decisive action to correct their obvious flaws, the secretary’s column is just another example by the administration to defend the existing programs while turning a blind-eye to the magnitude to this crisis.”

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19 Jun 10 Are California Loan Modification Plans Working for Lenders?

Thousands of struggling California homeowners have been screaming for years to get additional mortgage relief. Did you know that banks holding mortgage notes foreclosed on nearly 200,000 homes in California last year? Worse yet, it looks like the California loan modification plans are not working because 2010 toll looks like it will increase last year’s totals for loan defaults. California state lawmakers continue to try and plead with the lending banks to do extend more loan workouts that help both sides. Yet homeowner advocates say a serious problem remains. SB 1275 would prevent mortgage lenders and banks from foreclosing on borrowers who are seeking to modify their loans.

According to the LA Times, Many mortgage lenders are “overwhelmed and disorganized but they continue to foreclose on borrowers who are actually in the process of finalizing a home loan modification that would ensure more affordable monthly payments. At a time when the housing market is flooded with foreclosed homes, this doesn’t help anyone. The federal government rolled their attempt to stem the foreclosure crisis with the Home Affordable Modification Program that was created to stop lenders from foreclosing while a modification is pending, but other initiatives don’t.

California Senators Mark Leno and Darrell Steinberg are proposing to extend the same protection to all Californians seeking loan modifications. The California loan modification bill (SB 1275) would stop a home loan lender or mortgage service company from initiating the foreclosure process until after a mortgage loan modification application was denied. It’s a modest change that wouldn’t require mortgage lenders to change the terms of any loan modification program. Nor would it require lenders to do more to reach borrowers before foreclosing than state law already requires or to slow down foreclosures on borrowers who are beyond help. The law would require mortgage lenders to notify borrowers who get behind on their home loan payments about the foreclosure process and the availability of home refinancing or loan modification options, if any. And if borrowers applied unsuccessfully for a loan workout, the mortgage company would have to send them a letter explaining why they were denied and how they can appeal the decision before filing a notice that the mortgage was in default. The purpose of the bill was not just another attempt to help homeowners avoid making their mortgage payments; but it was created to help protect lenders from themselves. A recent report revealed that Housing counselors say the No. 1 problem is poor communication between mortgage companies and distressed borrowers.

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07 Jun 10 Qualifying for the Federal Loan Modification Program

The last thing distressed homeowners need is more run around when they apply for a loan modification plan. The Obama administration has extended mortgage relief with the new federal loan modification program. One of the concerns people have is loan modification eligibility. Not every borrower will qualify so before you risk losing your house, find out if you qualify for the federal loan modification program. These home loan relief initiatives were created to help struggling homeowners, overcome financial hardships with foreclosure preventions with a loan workout.

Are You Eligible for a Government Loan Modification Plan?

Are You Eligible for Obama’s Loan Modification Program? To be eligible for mortgage loan modification options under the federal initiative, borrowers should be able to meet the following basic requirements:

o The home for which the loan being modified must be the primary residence of the applicant.

o The value of the present home mortgage cannot exceed $ 729,250 for a 1-unit property.

o The existing home loan should have been approved before 1st January, 2009.

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17 May 10 Home Affordable Modification Plans Failing?

According to CNN Money there are 637,353 distressed homeowners that remain in a trial loan modification agreement. The rate at which of borrowers entering the Home Affordable Modification Program HAMP has slowed as servicers have begun to implement new requirements to gather income documentation at the beginning of the mortgage relief process.

Is HAMP helping second mortgage lenders? New home loan modification statistics released by Treasury provide additional insight into just how well servicers are doing in converting trial mortgage modifications to permanent status. The six servicers who verified borrowers’ income before placing them in trials have transferred more than half to long-term adjustments, with HomEq Servicing and Ocwen Financial Corp leading the way with 83% converted. Those lending companies using stated income or no limited documentation approach, however, have yet to hit the halfway mark.

According to the State Department, the California loan modification program has not had much success either because borrowers still can’t afford their mortgage loan, even after the lender modifies the loan to a reduced monthly payment. The largest mortgage loan servicers are behind most of the top lending banks like, with Bank of America 25%, Wells Fargo at 25%, JPMorgan Chase at 22% and Citigroup at 21%. Homeowners also languished in trial loan modifications at certain servicers. Some 76% of those in the trial phase at Saxon Mortgage Services and 72% at JPMorgan Chase have remained at that stage for at least six months. Servicers, who met with Treasury and Housing Department officials last week, told the administration they would clear the bottle-necked process by the end of June.

According to industry insiders, major changes to the federal loan modification program are coming soon in the wake of criticism that the Obama administration must offer federal mortgage relief to struggling borrowers. Starting June 1st, homeowners will have to provide all their income verification documents before they are put into trial modifications. This will make it harder for troubled homeowners to start the process, but it should make it easier for them to qualify for permanent assistance. Refinance loans have been difficult for most homeowners to qualify for because of depleted equity and slumping credit scores, so the loan modification has become an important part of the foreclosure prevention equation.

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