In light of California leading the country in foreclosures with the Top 5 Cities, lawmakers have decided to put an end to the madness that has caused the state fall to an all time low due to foreclosures. Yahoo News, just released an article addressing some concerns residents of California been having for years.
There have been a countless number of homeowners that felt and are still feeling the effects of foreclosures due to professionals pushing loan paperwork through to get a commission. As a result, homeowners dreams have been shattered and I’m sure a lot of marital problems have stemmed from the greed of culprits in the housing industry. The new bill that was passed in California was a huge step in the right direction to help owners stay in their homes longer due to overwhelmed lenders with under staffed offices.
One thing I like about the new bill is that it requires lenders to actually check homeowners files to see if they qualify for a loan modification before they are allowed to pursue the foreclosure process. Before, lenders were able to file notice of default without giving homeowners a fair chance to work out their loan problems. Only a handful of people will qualify for the loan mod but now lenders must send the owners a reason why they can’t qualify for a modification before they can go ahead to take the property from owners. Most of the time, lenders promise homeowners that lender is leaning towards a loan modification while at the same time, moving forward with the foreclosure proceedings.
If lenders fail to go through the proper steps stated in the bill, homeowners can sue their lenders for at least $50,000. With that type of bounty hanging over the heads of lenders will quickly get them in line. The only downfall is that fewer buyers will qualify for loans which means homes may sit on the market longer but the buyers that will qualify will be in a solid position to keep up with their home mortgages.