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Foreclosure freeze prods banks to modify loans
California implemented a new foreclosure moratorium on Monday to goad banks into modifying mortgages for struggling homeowners.
The California Foreclosure Prevention Act, signed by Gov. Schwarzenegger in February, adds 90 days onto the time period between when homeowners default on a loan and when their home can be repossessed in foreclosure. Banks can avoid the 90-day holdup by having a comprehensive program in place to make mortgages more affordable by reducing the interest rate, extending the loan term, or reducing or deferring some of the principal. Such programs must be approved by regulators.
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Some banks are certainly easier to deal with than others…Wachovia for example has actually reached out to borrowers and help Many with loan Mod’s….let’s hope other banks like B of A ,Wells etc follow suit to help keep people in their homes!
Regards
Rick Goates
ECO Broker
Redding Ca
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Government needs to leave the private sector alone. A bad loan today will be a bad loan 90 to 120 days out. Banks and their investors loose, while dead beats get 90+ additional days of free rent.
Only the socialists in the legislature & arnold would approve such a plan.
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Truth is, most banks already have loan modification programs so the headlines are sending out an inaccurate message. See my blog post: http://saratogavoice.com/wordpress/2009/06/19/little-practical-impact-from-california-foreclosure-prevention-act/
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