Ed Hardy Wholesale4Preventing California Foreclosu

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California, one missed mortgage payment can cause technical default. But in most cases, it is not until the third missed payment when lenders consider it as a California foreclosure of the home. This means that within three months, the homeowner could loose the home because of delinquency in payment. And surely, no resident would ever want this to happen. As much as possible, residents want to save their home. However, there are times when payment is really difficult to obtain.
An Uncontrollable Circumstance
There are situations that make it hard for the borrower to pay the mortgage. Common reasons for payment default are accidents, being laid off from job, sickness, and other personal reasons. If borrowers do not act on the default immediately, there is the tendency that lenders will have to consider foreclosures. It is then important that borrowers approach the lenders and make arrangements to save their homes.
Preventing California Foreclosure
California foreclosure is actually the last resort. There are many ways to save the home. Homeowners should understand that there is what is called the Emergency Loan Modification Act that considers homeowners who are having financial difficulty or unable to keep up the mortgage payment.
Before allowing the lender to process a California foreclosure, homeowners can apply for loan modification plan. Loan modification is the process of restructuring the mortgage contract between lender and borrower, taking into consideration the reason for the payment default. This is only one of the many possible solutions to prevent California foreclosure and not all homeowners are even qualified. Those who are qualified for loan modification are as follows:
Having high income-to-loan ratio. This means that the borrowers income do not suffice payment of the loan.
Having high loan-to-value ratio. This means that the loan is higher than the value of the home.
Having adjustable rate. This means that the mortgage is under adjustable rate, and the interest becomes so high that borrower cannot make payment.
Help through Loan Modification
Before homeowners are entitled for loan modification, the mortgages and the subsequent expenses are scrutinized to see if they qualify. This then requires documentation on the part of homeowners. Once they are proven to be qualified, they will undergo the process of negotiation with lenders to lower the interest rate, having a principal amount with longer payment period, and establishing fixed interest rate. With such an arrangement, there will be manageable mortgage payment thereby preventing California foreclosure on the home.
Of course, the homeowner can go through the loan modification procedure by himself. He can readily approach the lender and accomplish what is required. He can make the new arrangement with the lender and ask to hold the foreclosure and do all the hard work.
However for some people, the qualification process and the negotiation could be a daunting job. Besides [link widoczny dla zalogowanych], there must be enough knowledge on how to go about this process. Most people just find it exhausting to do more research. In such cases, they rely on the services of firms who work to prevent California foreclosure and save home.
With firms like Keep My House Law, homeowners can just sit around, let the firms do the hard work, and see their homes saved. This firm exists to save home by providing services to homeowners who are on the brink of loosing their home.