Foreclosure Lawyers of California recently announced expansion of their loan modification program for homeowners facing foreclosure for their California homes.  The number of foreclosures in California continues to explode. If you are facing foreclosure, consider the Foreclosure Lawyers of California because they have a record of proven results for homeowners seeking foreclosure prevention, mortgage restructuring and debt settlement.

According to loan modifier, Jeff Morris, “Homeowners need advice and affordable mortgage payments.”  Morris continued, “Borrowers are starting to realize that there are significant benefits that come with working with a law firm that specializes in defending families and their homes.”  Unforntunately, not all loan modification companies are looking out for the best interest of their client’s.  Attorney Matt McCormick added, “When you sign a retainer with a law firm like Foreclosure Lawyers of America you have unlimited foreclosure fighting resources, because we will do what it takes to keep the family in their house.”

The Foreclosure Lawyers’ foreclosure relief department has dedicated a team of loan modification professionals, attorneys and underwriters who boast of significant mortgage industry experience. Their team pledges to work diligently with your lender and/or invoke Federal Court Remedies to facilitate a solution that fits your budget and goals.

With California impacted more than any other state by the national home foreclosure crisis, Governor Arnold Schwarzenegger worked with loan servicers from Countrywide, GMAC, Litton and HomEq to agree to streamline “fast-track” procedures with loan modification solutions that could help stop foreclosures with sub-prime borrowers.  Together these four enterprises service more than 25 percent of issued subprime mortgage loans.

“With this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists. This common-sense approach does not involve a government subsidy or bailout,” said Governor Schwarzenegger. “Borrowers need to do their part too.  If these lenders are willing to meet more than halfway, it’s important that consumers don’t run when they reach out. It was a two-way street that got us into this mess and it will be a two-way street that gets us out.”

The agreement the Governor negotiated with lenders builds off a proposal put forward by Federal Deposit Insurance Corporation Chair Sheila Bair that encourages lending agencies to keep subprime mortgage borrowers at their initial interest rate if they are living in their home, making timely payments, but can’t afford the loan “re-set”–or jump to a higher rate. A half million Californians have sub-prime mortgages that will jump to higher rates in the next two years. Bair’s proposal has been endorsed by the newspapers including the Wall Street Journal and New York Times as well as public and community leaders. Governor Schwarzenegger is the first to spur servicers to publicly commit to modifying loans in a streamlined and scalable manner.

Schwarzenegger also announced additional steps the state is taking to help homeowners avoid foreclosure.  Through a statewide outreach campaign, which will include public service announcements, the Governor will help reinforce the importance for consumers to reach out to their lender if they are at risk of foreclosure.  The Governor will also continue to lobby Congress to raise federal loan limits so that more California families can take advantage of these secure products, rather than relying on subprime loans.  “Losing your home in a foreclosure is an emotional crash that can take years to recover from, but we don’t have to sit idly by and watch the American dream turn into the American nightmare. We must take steps at both the state and federal level to make sure future mortgages are on more sound economic footing.  In the meantime, by working together, we can protect the American dream and our economy without hurting the American taxpayer,” said Governor Schwarzenegger.

Seven of the top sixteen metropolitan areas with the highest rates of foreclosures in the nation are in California, according to the latest data from RealtyTrac. In the Stockton, Riverside/San Bernardino, Sacramento, Bakersfield, Oakland, Fresno and San Diego metropolitan areas, there was an average rate of approximately one foreclosure filing for every sixty households in the last quarter. The Governor made his announcement this morning at a meeting with San Joaquin Valley elected, business and community leaders in Fresno, which ranked 13 on the list.

This year, Governor Schwarzenegger signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities.  The Governor has also pledged to work with lawmakers in the coming year to take additional steps to protect homebuyers.   Earlier this year, the Governor directed his Cabinet to form the Interdepartmental Task Force on Non-Traditional Mortgages. California was one of the first states in the nation to form a task force to examine the alarming developments in the non-traditional mortgage market.  The task force consists of leadership from two agencies and seven departments responsible for all aspects of this complex issue.

Run by the California Housing Finance Agency, a state agency that finances safe, affordable loans for first-time homebuyers, the program will be available in ZIP codes identified as the most impacted by foreclosures in California including Riverside, Stanislaus, San Joaquin and Merced counties. Areas in Los Angeles, Contra Costa and Alameda counties are also included.  Several mortgage lenders have agreed to partner in the program and offer sales prices on bank-owned properties at least 12 percent below estimated value in the identified ZIP codes.

The $200 million bond fund allocation is provided by the California Debt Limit Allocation Committee to fund the program at no cost to the state’s General Fund.  “This mortgage relief package will give many first time home buyers the opportunity to attain the American dream while also helping areas of the state that have been hit hardest by the mortgage crisis,” said State Treasurer Bill Lockyer, who chairs the Committee.  “I commend the Governor and CalHFA for their leadership and am pleased to work with them to help address California’s housing crisis.”

• Signed legislation to help protect homeowners by requiring a mortgage holder to provide a 30-day notice to a borrower prior to filing any default notice leading to the foreclosure. The new law also provides tenants of foreclosed properties a minimum of 60 days notice to move and requires holders of foreclosed properties to maintain the property.
• Awarded $73 million for affordable housing projects in Proposition 1C and Proposition 46 funds to help more than 1,600 California families rent or purchase affordable housing.
• Announced $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds to jumpstart 14 affordable multi-family projects up and down the state, helping more than 1,000 California families and individuals realize the dream of an affordable rental home.
• Announced $5.6 million to help mortgage and banking industry workers laid off as a result of the subprime crisis make career transitions to high-demand jobs in other industries.
• Announced more than $72 million in federal HOME Investment Partnerships Program funds to provide assistance to first-time homebuyers, reduce the number of bank owned homes and increase the number of rental properties.
• Led a town hall meeting with U.S. Treasury Secretary Paulson in Stockton to discuss help for homeowners facing foreclosure.
• Joined the OneCalifornia Foundation to announce a bridge loan fund for homeowners facing foreclosure in Oakland.
• Awarded $8 million to community based mortgage counseling providers around the state to help avoid foreclosures.
• Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
• Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.          
• Established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.
• Signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities. 

Over 100 million households have learned about where to go for help if they’re experiencing mortgage trouble that might lead to foreclosure through a national public service advertising campaign led by NeighborWorks(R) America in partnership with the Ad Council.  Launching with material financial support from the home loan and financial services industries in June 2007, the television, radio, Internet and outdoor ad campaign is the third most active Ad Council campaign, trailing only the organization’s effort to promote broadcast TV parental controls and the long-running drunk driving prevention campaign.

In all, the mortgage and financial services industry supported public service advertising campaign has generated nearly $74 million in donated ad time.  As a result of this and other outreach efforts by participating non-profit organizations, mortgage lenders and thousands of homeowners who faced possible home foreclosure have contacted non-profit housing counselors around the county and received information regarding loan modifications that can help families avoid foreclosure.

“The advertising campaign continues to show progress and success,” said Kenneth D. Wade, CEO of NeighborWorks America. “With more than 100 million broadcast, Internet and outdoor media impressions since the campaign’s launch a year ago, we know that many people who would have been foreclosed upon have prevented foreclosure and remain in their homes.”

“The current financial crisis has its beginnings in the weakness of the housing market,” explained Wade. “We believe that an important step in reversing the current decline in the housing market involves continued outreach to homeowners with the right information they need to help them save their homes or get into a more sustainable housing situation. That’s why this effort will continue into 2009 and NeighborWorks America is working on additional tactics to help strengthen homeownership and stabilize communities.”