Foreclosure Vs Short Sale California

Loan modification southern California

It's not surprising that loan modification is the first preference of those in financial distress.

In theory, loan modification should be a straightforward process, facilitated by the government's HAMP loan modification scheme. However, loan modification in California can be arduous and the loan modification process can be drawn out and frustrating.

Loan modification Los angeles

What is the prospect for loan modification in LA county? Home values in LA County collapsed from a median of $550k in 07 to $330k at the end of 2009.  With many owing more than the value of their homes, loan modification in Los Angeles does not wipe out negative equity. Loan modification does not address the issue of mortgages that exceed the value of a property.

Loan modification San Diego

House values in San Diego, CA recovered somewhat at the end of 2009, after following the general CA trend. Loan modification in San Diego should in theory be more viable than loan modification in southern California in general because of this, but many people are still facing negative equity.

Loan modification Riverside

Loan modification in Riverside CA has to be viewed against the background of home valuations that have reduced in Riverside from a median high in the mid-400k's to sub-$200k at the end of 2009, with no recovery in sight. As with loan modifications in LA (in particular) the high degree of negative equity means that loan modification does not fix the problem for many mortgagees. Loan modification in Riverside effectively locks in a mortgage that is higher than the property value.

Loan modification Orange County

The prospect of loan modification in Orange County mirrors that of LA county, since there has been a similar collapse in property values. Loan modification in Orange still may mean locking into a mortgage above the property's value, and praying for a recovery in prices in time.

Loan modification Irvine

Loan modification in Irvine may be more viable given that more residents are likely to have a large equity stake in this more upscale district. Loan modification in Irvine for those with big mortgages and low equity will be a challenge, with median property values crashing $200k from the 2007 peak. For these people, loan modification will not deal with their negative equity problem.

California loan modification laws - articles