Search CA Foreclosure Knowledge-base:

« 15 Options to Prevent Mortgage Foreclosure California - #15 File for Bankruptcy (Video) | Main
Wednesday
Jun232010

California Short Sale Process Assisting California Loan Modification Process (With Video)

California Loan Modification Laws and California Short Sales Laws

The California loan modification laws and the California short sales laws are scattered throughout the Civil Code within the California foreclosure laws.  To succeed in the loan modification (California) process or the short sales process (California), it is important to have at least a basic understanding of the California loan modification laws and the California short sale laws.  Real estate professionals assisting homeowners also need to change their focus and look for ways to leverage the California short sales process to create results in the California loan modification process.

California Loan Modification Process and California Short Sale Process in Disarray

Right now, the banking industry seems to be in disarray.  Fear and greed are the operative terms I would use to describe what is going on.  Not only are they fighting with the homeowners, they are also fighting amongst themselves.  A significant effort is underway to sue the loan originators who created all these over-leveraged loans.  You see, the banks know it is not your fault even though they are attempting to saddle you with these excessive debts.  But they are also attempting to make you pay all the related late fees, interest, and other (legal) costs.

California Loan Modification Process vs. California Short Sale Process

In the California loan modification process, banks are very reluctant to waive the fees, interest, or reduce the principal balance on loan, at least initially.  In contrast, these same banks will negotiate huge losses as a part of the California short sale process, in a last ditch effort to stop foreclosure California.  (Banks also want to stop foreclosure California.  This is because a foreclosure would result in even higher bank losses compared to the California short sale process or the California loan modification process.) 

Major Issue Overlooked in Loan Modification California Process

This is an important issue that most loan modification companies overlook.  Even though they may be fully engaged in the California loan modification process, their negotiations are not leveraging the higher bank costs associated with the California short sale process.  Most loan modification California companies focus primarily on legal issues in a misguided effort to get their California loan modifications approved.  However, it is this simple financial comparison that can dramatically change their results, demonstrating how important it is for homeowners to have the right people helping them.  Otherwise it is unlikely that these basic issues will be managed correctly.

Using California Short Sale Process To Help California Loan Modification Process

You see, it’s like the lender and homeowner are at a fork in the road.  If it is clear and well-documented that the homeowner can almost afford the property, then the lender will opt to approve a loan modification (for the least amount necessary to get the loan performing again).  If the homeowner cannot afford the property, then the lender will opt to approve a short sale, and will absorb the losses based on a negotiated sales price.  When the lender is determined to avoid the losses associated with the California short sale process, that is when they are likely to make generous concession during the loan modification California.

It is absolutely essential that all the pieces to this puzzle be presented to the lender in a very precise manner, or the lender, in their infinite “hurriedness”, will come to the wrong answers.  Unfortunately, most loan modification California companies are screwing this up, which explains why the vast majority of loan modification requests end in failure.

Sometimes the banks “put two and two together” all by themselves, and sometimes we might need to point them in the right direction.  For the banks, the smart thing would be to make a more generous loan modification offer.  But this often does not happen by itself because many banks have separate departments for the California short sale process and for California loan modification process, and their internal communications are sometimes not very good. 

Loan Modifications Calififornia frustrating for Congresswoman Maxine Waters

The California loan modification process and the California short sale process are definitely frustrating to navigate, and they require inside knowledge to get directly to the bank’s negotiating department.  For example, check-out the video of Congresswoman Maxine Waters.  As a Los Angeles "local" who has also served in government, I have seen Congresswoman Waters in action over the last few decades, and she has always fought hard to resolve important issues for her constituents.  In this  video, Waters becomes frustrated in her attempts to help her constituents, and is unable despite the substantial clout that she holds in our government.  

Reader Comments (2)

The banks in california do not help the homeowners at all also there appraisal it way to high they want sales price that is higher then the value of the property

October 19, 2010 | Unregistered Commentercari

California Short sale experts also providing consultation for loan modifications and deeds in lieu.

December 9, 2010 | Unregistered Commenternoequity88

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>