California Loans News

California mortgage modifications have been in the news for the last several months as millions of homeowners faced or face uncertainty about their ability to continue paying their mortgages.

Nose-diving home values, skyrocketing unemployment, increased taxes and ballooning payments have led many homeowners to the brink or past the brink of foreclosure and bankruptcy.  Many California homeowners were saved by getting a mortgage modification and many more will.  But is a mortgage modification your only option?

As with any major financial and legal decision it is important to consider both your short-term and long-term goals before knowing whether or not a California mortgage modification is right for you.  For some homeowners there may be better decisions ranging from: foreclosure defense, bankruptcy, deed in lieu of foreclosure, refinance, reverse mortgage or short sale.

A licensed attorney in California can explain these options to you and review with you the pros and cons as they relate to both your short-term and long-germ goals.  Some homeowners have legitimate foreclosure defenses.  Others may find that their best course of action is to sign the deed of their home over to the lender rather than fight a foreclosure or seek a mortgage modification.

Bankruptcy may be a viable option but again this will depend on both your short-term and long-term goals.  A reverse mortgage for seniors may be a viable option where you start pulling equity out of your home rather than try to make payments for it.  A short sale is when the bank agrees to let you sell the property for less than its value and wipe out the rest of the debt owed.

It is important to know all of your options.  Lenders will not present to you your full options because their primary object is doing what is best for the bank, not for you.  Typically the only person that will look out for your interests, aside from yourself, is your attorney.

If you have questions or want to know alternatives to a California mortgage modification you should find a licensed attorney in California.

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