California foreclosure moratorium- creating wavesJune 16th, 2009 - 12:46 am ICT by GD
Will the lenders lose their borrowers or will the borrowers lose their homes? The California foreclosure moratorium is making a conscious effort to support the house owners who have bought houses on loans and have been unable to make timely payments which results to losing of their homes. Now thats a situation seen very often in the US. The loan companies are therefore trying to help borrowers stay in their homes.
The bill was passed in February in the presence of Governor Arnold Schwarzenegger , who approved the California Foreclosure Prevention Act. This act is similar to Obama’s administration’s of Making Home Affordable Program that began in March. The methods incorporated to hold back borrowers are offering lower rate of interest, redefining loan contracts which make payments affordable and at times increasing the time span of repayment of the loan.
The President is bringing new plans but are they being implemented or not is a question. As found from sources, “The Obama plan has not been implemented by the banks,” stated by Yvonne Maria Jimenez of the nonprofit coalition One LA-IAF. In California the foreclosure rate is the second highest and people are losing homes while trying to manage their financial needs.
An point to note about this modification of payment is that the monthly payments might increase as it would incorporate payments missed prior to the modification so it is not always possible that the payments get lowered with the foreclosure. At times, borrowers are also forgiven on a part of their loan.
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