It seems that legislators simply don't get it when the issue is homeowners facing foreclosures. Recent laws in California, specifically SB 1137 requires lenders to to talk with borrowers before starting the foreclosure process. Since when do we need a law requiring lenders to communicate with borrowers who are in default?
The law is obviousley an attempt to give lenders an opportunity to modify an existing loan. Or is it?
The new law prevents lenders from starting foreclosure proceedings until 45 days after contacting borrowers who are behind in payments. The first step, filings of Notices of Default dropped immediately after the law took effect, but recent figures indicate foreclosures are again on the rise. A month after the law took effect foreclosure filings in California fell by 50 percent, but that number is again starting to creep upwards. Whether this is a result of the new law or about the time lenders started adjusting the terms of the loans is still a question to be answered.
What will you do if you find yourself behind in mortgage payments?
Many people want to hide, to hang their head in shame, but that's the worst thing you can do. Call your lender and explain the circumstances that led you to be late. If the problem has been corrected, ask for time to make up the payments. Many times lenders will add the missed payments on to the back end of your mortgage.
If, however, you find that the existing payments are too difficult to make, ask for a loan modification. You'll need a Hardship Letter and we'll give you a sample for free. Go to our website for this.
You can do this yourself, but it is a very difficult process. It is emotional, confusing, and requires full financial disclosure. That means tax returns, bank statements and proof of income.
Do you ever wonder why an attorney never represents himself? Why, you ask, would an attorney hire another attorney to represent him or her? The answer is the same as trying to modify your own loan. There are experts out there who will do a much better job than you. People who are not emotionally attached to your home. People with knowledge and an understanding of what lenders are willing to do-or not do. The small fee for a loan modification is nothing compared to the savings you may save by using a qualified company. We even offer a Discount Coupon to make the process even less expensive.
