California SB 94 on Loan Modifications Passes Assembly 62-10

Lori at 06:15 2009-09-14 said:

I've been in the mortgage industry for many years, managed a mortgage company. I also disagree with this law, SB 94...I am also a negotiator, the company I work for is registered with the DRE a well. There are many mortgages that are Alt A and Option Arms resetting. From my experience most homeowners have tried calling a non profit organization, tried modifying with their lender or tried doing it themselves and they have been turned down and they come to Attorney or Loan Modification companies to help them. Lenders are in business to make money, if they were willing to help the borrower to get out of their problem, they would of helped them prior to going into foreclousre proceedings. Since the banks are receiving money from the government to participate in the making home affordable program, for Obama plan..this is the only way to get banks to help homeowners. Most collection departments in mortgage companies treat the borrower badly..they make a comission on bringing in funds to for the borrower to catch up..they put a borrower in a forbearance plan that is more than what they could afford and therefore; the house goes back into foreclousure. Most non profit organizations are so busy sometime up to a few months..for a borrower to wait to get his home modified while he or she in forclosure is a scary feeling...the collection activity and the foreclousre prceedings do not stop while the modification process is being processed. Its only when the bank approves the homeowner for a loan modification or a trial period modification. Most people work a regular job from 8 to 5...they do not have time to stay on the phone more than an hour. Some banks have a 40 miniute intereview to go over financials with the borrower. My personal opinion is that if this law is passed, their will be more litigations from attorney's and borrowers. Permalink