On June 15, 2009 the California Foreclosure Prevention Act went into effect in order to help many Ventura County and California homeowners who are at the risk of losing their homes. The California Foreclosure Prevention Act adds 90 days to the existing foreclosure process to help homeowners work on a loan modification program with their lenders. This means Ventura County homeowners have an extra 90 days from the time that they have defaulted on their mortgage to the time their home is sold in a foreclosure auction. California now requires that lenders need to prove that they have worked with a homeowner on a mortgage modification before the homeowner’s property is put up for foreclosure.
“The goal is to compel banks to do systematic loan modifications across California to reduce our foreclosure rate, which is the highest in the nation,” said Assemblyman Ted Lieu, D-Torrance, who wrote the bill.
While there is no guarantee that a homeowner is eligible for a loan modification, the new law would like to see that the lenders have made an effort to help the distressed homeowner. Some lenders may choose not to participate in this program, however, in order to do so, they must apply for and receive an exemption from these provisions of the new law.
Although it’s great to see the government helping distressed homeowners, it is very important to know that this new law will not help every distressed homeowner in Ventura County, California. Those homeowners in Ventura County who can not qualify for a loan modification, will opt to short sale their home.
As Ventura County distressed home owners wait for a loan modification, our county should see a reduction in the number of bank owned/REO homes. Help from the government will assist many home owners in Ventura County, however so long as jobs are lost, governmental assistance will protect only some people from losing their homes.
If you need any help or have any question with mortgage modification in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.
