California Loan Modifications

Loan-Modification411.com’s Partnership with CA Law Firms

Because of the SB 94 law in California it is very important to choose the right option for assistance in Loan Modification and Loss Mitigation services.  Because of the high demand for help in the hard hit state of California , Loan-Modification411.com has partnered up with the most ethical, high quality, compliant law firms in the state to assist clients.  Contact us today to speak directly with a law firm about your specific situation.  Our attorney partners are the best in the business and can give you a wealth of information in a very short amount of time.  The consultation is always free and is always confidential.

What is SB 94?

Senate Bill 94 is an important law for all California homeowners in need of modification services to know and understand.  It was passed specifically to protect homeowners and it prohibits any type of foreclosure consultant or assistance company or law firm from collecting any advanced or upfront fees.  All the attorney partners for Loan Modification 411 are SB 94 compliant and charge no advanced or upfront fees.

What other loss mitigation options are possible?

Forbearance Agreement - In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower in order to delay a foreclosure.
Loan borrowers sometimes have problems with their payments due to unexpected circumstances. This may cause the lender to start the foreclosure process. To avoid this situation, the lender and the borrower have the option to make an agreement called "forbearance". According to this agreement, the lender delays his right to exercise foreclosure if the borrower could catch-up his payment schedule in a certain amount of time. This time-period and the payment plan depend on the details of the agreement which are accepted by both of the parties involved.
Note that forbearance is just for "temporary" financial problems. If the borrower has more serious problems, for example if it is a variable-rate mortgage and the interest rate become high enough so that the borrower cannot afford the payments anymore, then forbearance is usually not a solution.

Deed in Lieu of Foreclosure: This is a process whereby the lender releases the homeowner from the obligations of the mortgage in exchange for the Deed to the home.

Cash For Keys Negotiation: This is a variation of the Deed in Lieu of Foreclosure. The difference is that the lender will actually pay the homeowner to vacate the home in a timely fashion without destroying the property. The lender does this to avoid incurring the additional expenses involved in evicting such homeowners.

Short Sale: This is a process whereby a lender reduces the principal balance of a homeowner's mortgage in order to permit the homeowner to sell the home for the actual market value of the home.  This specifically applies to homeowners that owe more on their mortgage than the property is worth. Without such a principal reduction the homeowner would not be able to sell the home.
Reinstatement: You pay the loan servicer the entire past-due amount, plus any late fees or penalties, by a date you both agree to. This option may be appropriate if your problem paying your mortgage is temporary.
Repayment plan: Your servicer gives you a fixed amount of time to repay the amount you are behind, by adding a portion of what is past due to your regular payment. This option may be appropriate if you’ve missed only a small number of payments.

Selling your home: Depending on the real estate market in your area, selling your home may provide the funds you need to pay off your current mortgage debt, in full.

Personal bankruptcy: Generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy another home, get life insurance, or sometimes, even get a job. Still, it is a legal procedure that can offer a fresh start for people who can’t satisfy their debts.
If you and your loan servicer cannot agree on a repayment plan or other remedy, you may want to investigate filing Chapter 13 bankruptcy.  If you have a regular income, Chapter 13 may allow you to keep property, like a mortgaged house or car, which you might otherwise lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income toward payment of your debts during a three-to-five-year period, rather than surrender the property. After you have made all the payments under the plan, you receive a discharge of certain debts.