In recent months, we have seen an increase in government efforts at both the State and Federal levels to aid homeowners in their fight against foreclosure. First there was President Obama’s Making Home Affordable plan, which offers to assist homeowners who are looking to refinance or modify their mortgages.
In recent months, we have seen an increase in government efforts at both the State and Federal levels to aid homeowners in their fight against foreclosure. First there was President Obama’s Making Home Affordable plan, which offers to assist homeowners who are looking to refinance or modify their mortgages. Then, in June, the California legislature passed The California Foreclosure Prevention Act, thereby enacting a 90-day moratorium on foreclosures in the state of California.
Despite both of these government programs, many Los Angeles homeowners are waiting for loan modification. In the first six months of the Making Home Affordable Plan, only 12 percent of eligible mortgage loans nationwide have been modified. Meanwhile, the term of the California Foreclosure Prevention Act was June 15th through September 15th, leading many analysts to speculate about the potential post-program fallout.
Now, the Los Angeles City Council is getting in on the action. There is a motion currently before the Los Angeles City Council focused on the city government’s ability to influence banks and lenders by strategic divestment and investment of the city’s funds.
Earlier this year, Los Angeles City Council member Richard Alacorn introduced the motion to divest city funds from banks that are not actively working with Los Angeles homeowners in need of loan modification. He suggests that the city take into account not only the dollars and cents when choosing banking partners, but also a range of social factors. The City Council’s aim in this policy would be to send the message that government investment is a privilege that will only be granted to financial institutions who are actively and responsibly serving the community.
These two bills are part of a larger view of the future relations between cities and banks. At a recent meeting, the City Councils Jobs and Business Development Committee considered all the aspects of this proposed rating system. In a system like this, banks that demonstrate a record of dedication to social responsibility would be rewarded. For example: if a bank opens a new branch in a neighborhood that has been previously overlooked, that bank would receive a higher rating and, consequently, be given more government business.
The City Council is making positive steps towards preventing future foreclosures in Los Angeles; however, the best option for homeowners in need of a quicker solution to their foreclosure crises may be to contact a Los Angeles loan modification attorney directly. Government programs can take months, and sometimes years, to get going; homeowner who are waiting for the government to agree on a plan might find themselves waiting for too long. A California loan modification attorney can begin helping you today by reviewing your financial situation and recommend whether or not a loan modification is right for your situation.
A loan modification is a way to lower your monthly mortgage payments by lowering your interest rate, eliminating late fees and penalties, lengthening the term of your loan and more. The ultimate goal is to renegotiate your loan so that your monthly mortgage payment is more affordable, allowing you to stay in your home for the long term.
The Feldman Law Center is one of California’s top loan modification companies, providing excellent loan modifications service to our clients. Call us at 800-588-0425 to stop foreclosure.
