Mortgage lenders including Merrill Lynch, Wells Fargo Bank, Countrywide Financial Corp., and five other have pledged $4.6 million to hire mortgage counselors to help homeowners facing foreclosure in the state. The San Francisco Foundation and the California Community Foundation have also made pledges towards the fund.
The mortgage counselors’ main responsibilities are to negotiate with mortgage lenders on the behalf of borrowers to help avoid foreclosure. This includes working out a loan modification program, in the form of loan terms and adjusting payment schedules, which are beneficial to both the homeowner and the mortgage lender.
California lawmakers are also pushing for debt forgiveness on homes that have been foreclosed on. Currently a Federal law allows tax relief to homeowners who have recently lost their home due to foreclosure. Unfortunately for Californians, California does not follow federal guidelines.
The funds that have been pledged should add another 45 counselors to the 300 already throughout the state of California.
Although loan modification has been a hot topic as of late, shopping around for a mortgage is always in your best interest. Loan modification programs are a temporary fix and your interest rate or payment may adjust after 5 to 7 years. Fixed rate mortgage are on a downward trend and may be a better option over a loan modification program.
America’s Mortgage Source is a good place to find the information you need before accepting any loan modification program or refinancing your mortgage. America’s Mortgage Source offers the latest breaking mortgage news, live streaming mortgage rates and advice on how different types of mortgage programs work.
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