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Happy Thanksgiving! There may be some good news for those facing Foreclosure in Real Estate for the Sacramento area and all over California for that matter.
This week, Governor Schwarzenegger met with 4 of the largest loan servicers who are servicing subprime loans. The Governor asked these loan servicers to voluntarily agree to NOT adjust mortgage rates on their subprime loans which constitute 25% of their real estate loans. California rates twice the National Average in Forecosures. This is having quite an impact on our economy here in California.
The four lending loan servicers that Gov. Schwarzenegger met with are:
- Countrywide Financial Corp.
- GMAC Mortgage
- Litton Loan Servicing
- Home Eq Servicing
Sad to say that this does not come in time for many who have lost their homes. Governor Schwarzenegger had this to said, with this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists.
In March 2008, it was predicted that the peak of Foreclousre was to hit California due to loans adjusting to a much higher rate, but now with Gov. Schwarnenegger stepping in, this may save many of those homeowners who have a subprime loan that will be adjusting. There have been 24,000 foreclosures in California alone, so far with Stockton being #1 in Foreclosures with 1 out of 31 homes foreclosed upon and Sacramento second, with 1 out of every 48 homes foreclosed.
There are a half million Californians who have subprime loans that will jump to higher interest rates. Our Governor, Gov. Schwarnenegger is the first to step up to the plate to protect the homeowners of California.
Its important not to simply wait and do nothing. The Governor has asked, borrowers to do their part meet the lenders half way. Homeowners facing foreclosure MUST contact the bank at the very 1st sign of a problem. This is a horrendous time for a homeowner, but you need to put aside the emotions and solve the problem. Dont just walk away, step up, call the place that you pay your loan each month and talk to them. There is help but you need to be pro-active.
Help for Sacramento homeowners losing their houses has been accomplished by the Federal Deposit Insurance Corporation Chair Sheila Blair where she encouraged the lenders to keep subprime mortgage borrowers at their initial interest rate if their are living in their home, making timely payments but cant afford the loan to reset to the higher interest rate.
Many have said that the Sacramento homeowners in foreclosure should take responsibility and not receive any bail-out help Federally. Its time that everyone realize that this doesnt just effect those homeowners losing their homes, it effects ALL of US. New laws need to be enacted where this type of lending practice is not to be readily used for the masses. More regulation and protection for the home buyer needs to be established in the lending field.
I for one, am pleased that something is FINALLY being done to reverse this horror in real estate and with the American Dream of home ownership. This is truly a thankful, Thanksgiving just wish it had come sooner for so many other homeowners.
What are your thoughts on Foreclosure and the effects of foreclosure on the homeowner as well as the country as a whole?
Here are some helpful websites for those Sacramento homeowners in CA having difficulty or having questions about their mortgages:
CA Consumer Home Mortgage Information
Look for ads on television and with your local city government offices for more help with Stopping Foreclosure and stopping your adjustable rate from going up. The Governor will be running ads soon…there is hope but you MUST act.
Happy Thanksgiving!
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Gena- great Thanksgiving post…we so need leadership from our government here…and once again Arnold S is leading the country, since there is a leadership vacuum at the Federal level. Sacramento real estate will benefit, California will benefit, and hopefully the country will too. Terry McDonald
Governor Schwarzenegger is doing a good thing trying to protect the American dream and the economy without hurting the American taxpayer!!!The Governor is proactive in working with lawmakers to protect homebuyers.
Gena – This is great news and definately a cause for thanks for sacramento and California. Maybe the state can escape some the dreaded 2008 predictions.
Terry, I certainly hope that this news brings other service providers on board to work with the homeowner. We could use some good news.
Port Orange, yes we need some changes and laws enacted to protect the home buyer. I think the Gov. will be the one to make that happen.
Paula, hope so. Otherwise we are all in for a shock. But one of the things that a lot of people don’t seem to realize is what CA goes through will effect the rest of the country, as well…not pretty picture. So, here’s hoping that this Thanksgiving brings a new and brighter future for us all.
Gena – Does that mean what happens in California, doesn’t stay in California?