Two Lenders Have Forestalled Foreclosures

by Sally Lawrence

It’s nice to start this site with a positive post!  Tehachapi homeowners facing foreclosure may benefit from the fact that two of the largest lenders have decided to stop foreclosure proceedings.

JP Morgan Chase announced yesterday that it will stop foreclosure proceedings pending review of loan docs for possible errors.

The California Attorney General wants GMAC Mortgage LLC to stop foreclosures in the state.  Apparently, Attorney General Jerry Brown says he wants them to prove that they are complying with a state law aimed at preventing foreclosures.

For mortgages made between January 1, 2003 and December 31, 2007, lenders are required to attempt to contact a borrower to determine if they are eligible for a loan modification.  This must be done before a lender can issue a Notice of Default on the property, the first step in the foreclosure process.

Interestingly, statistics show that the majority of loans that are modified still wind up in default since the underlying hardship that necessitated the modification is not changed.  So, for most people, a loan modification may only delay the foreclosure process.

Although we doubt that this will be a long-term change, it does offer some relief for folks who are facing foreclosure.

If you know someone who has already started the foreclosure process, let them know that there are options available.    For more information fill out the form on the Home page, or call us today at 661.375.REAL (7325) to schedule a no-cost, no-obligation discussion of available options. 

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