Distressed California Homeowners: Help is on the way!

12 September 2008

Author: admin Posted under Foreclosure Filings

When the subprime mortgage mess erupted, one of the states hardest hit was California. To date, the state remains to be have one of the highest foreclosure rates in the nation. if you check the local real estate market, you will find hundreds of thousands of California foreclosures for sale.

Because of the negative impact of such a large inventory of foreclosure, it is not surprising that local government officials and private organizations are trying to extend assistance in the form of foreclosure counseling centers.

Such is the case in Riverside County where the Housing Resource Center was recently opened to the public. The said foreclosure counseling center will provide free counseling to distressed homeowners who are looking for a way to avoid losing their home to foreclosure.

Most foreclosure counselors act as mediators between the troubled borrower and the mortgage lender, helping them reach an understanding that will both be beneficial for the two parties. Contrary to popular belief, most lenders are not keen on foreclosing on a property since it will mean additional costs for them. In addition, they will have to worry about holding costs if the ownership of the foreclosed home is reverted to them.

Nationwide, millions of homeowners have already benefited from foreclosure counseling offered by different organizations and alliances. Most of these homeowners were able to enter into a repayment agreement with their lenders while the others were lucky enough to have their loan modified entirely.

Most housing advocates are pushing for lenders to agree to loan modification versus repayment since this will provide a long-term solution for most struggling homeowners.

As always, foreclosure experts encourage homeowners to speak with their lenders regarding their mortgage problems in order to avoid losing their homes to foreclosure. it is better to face these financial difficulties head on than hide in one corner, hoping that the foreclosure problem will go away.