It's no secret that many troubled California homeowners are either going through the foreclosure process once they receive a NOD (Notice of Default) or will soon be facing foreclosure once their ARM (Adjustable Rate Mortgage) resets. There are numerous foreclosure stories about lenders not providing adequate assistance to homeowners and delays taking months until a final decision is made, which usually ends up with the request for a loan modification being denied.

Other sources commonly used to help avoid California foreclosure are Loan Modification Services, government help to stop foreclosure with bailout programs, mortgage broker or real estate agent, attorney, and forensic loan auditing services. Intentional or not, loan violations did occur (example: large or unexplained loan fees, non receipt of HOEPA disclosures within the right time line, Stated Income, Stated Assets, No Documentation, Option Arms, or Negative Amortization loans) on the part of mortgage brokers and funding lenders during the housing boom. Along with these violations, there was a rush to approve and close mortgage applications before the rate lock periods expired; this "boom period", combined with today's economy and investor hesitation in purchasing pools in the secondary market has created our situation as of this moment.

There are many ways to stop California foreclosure, the question becomes which option will best fit your needs. It's important to not just base a decision solely on cost but to also look into the benefits offered; keep in mind, once you sign any loan modification agreement (which is always created by the lender's legal department), you are effectively waiving all rights to any future litigation based on the current loan's mortgage violations.

One of the most under utilized options in order to prevent foreclosure in California, would be to have your mortgage loan documents reviewed for Federal, State, or Predatory Lending violations (by reviewing the Truth-in-Lending statement and HUD-1 for starters); completing a forensic loan audit would accomplish this task. If the Truth-in-Lending statement (TIL) provided by the lender doesn't match up with the HUD-1 closing statement, or the Annual Percentage Rate (APR) calculated is slightly different, or the RESPA has errors, this could be cause for legal action which could persuade better communication with the lender as you work through these financial difficulties.

Traditionally, a forensic loan audit would be ordered by real estate investors as a means to determine what legal liabilities they face in the pools of loan packages they have or are about to purchase. More homeowners are beginning to realize that the combination of having legal assistance combined with a forensic loan audit is providing them with more leverage when negotiating with the lender; unfortunately, there are millions of homeowners who are not aware of this type of assistance and are giving up on maintaining their most valuable asset. Eric Halpren, Director of the Center For Responsible Lending in Washington, DC suggests "You should use the services of a lawyer to help save your home".

Loans with illegal terms or conditions, and foreclosures resulting from illegal loans are not enforecable; the foreclosure process can be stopped once litigation has begun on a questionable loan.

Most of the foreclosure auctions that are occurring in California are related to procrastination. Whether it's not answering the phone when caller ID shows a finance company name or number, receiving legal notices through the mail without taking action, or not researching to gather information about their options, the process will not stop until action is taken. Don't wait until a sale auction is within 3 days before you finally decide on doing something, because your options are limited and the cost factor will probably be higher; which is money you could have saved by acting earlier.

Typically, cost is one of the main deciding factors when a homeowner is looking for foreclosure help or avoidance, so their first step is trying to work with the lender directly without much success. The next option used is a government program to help stop foreclosure, these are also free but come with many strict requirements. The remaining options to help prevent foreclosure all require some sort of initial investment for their services and this is where the procrastination begins because most homeowners don't take the time to determine which program would best benefit their situation.

There are many "How To Save My Home" websites promoting various options to homeowners, but proper research should be advised before establishing any business relationships. If a homeowner has a variable interest mortgage loan that was originated between the periods of 2001 to early 2007 (with loan programs like Pick-A-Pay, Option Arm) that were not Fannie Mae or Freddie Mac backed, they should consider the benefits of using a forensic loan audit.

The California Foreclosure Prevention Act was recently enacted as a tool to help slow down the foreclosure filings and give homeowners more time receive assistance.  Basically, the plan requires a lender to provide the state with evidence that they have a loan modification programs available to offer homeowners facing foreclosure, if not, then they will have to add 90 more days to their preferred sale date.  Make note, if the sale date has already been scheduled, then the prevention act does not apply.

The lenders are promoting this prevent act as a "workout program" where the homeowner will have an additional "3 months" of reduced payments at a set amount; once that period expires, they will re-evaluate the loan.  So basically, a short term agreement is reached and then the same slow process you were experiencing before this "workout program" began will be continued; leading eventually to a possible notification of decline.  If the homeowner is currently doing a forensic loan audit and has an attorney representing them, it's suggested that they continue with their process and not get swayed into accepting a temporary solution to a major problem.

Get a mortgage loan audit and help stop, prevent, or avoid a California foreclosure auction  within these surrounding communities:

San Ramon, Dublin, Danville, Diablo, Pleasanton, Castro Valley, Alamo, Hayward, San Leandro, Walnut Creek, Moraga, San Lorenzo, Livermore, Oakland, Clayton, Sunol, Union City, Lafayette, Fremont, Canyon, Concord, Pleasant Hill, Orinda, Alameda, Piedmont, Newark, Berkeley, Antioch, Brentwood, Pittsburg, Emeryville, Martinez, Mountain View, Byron, Albany, Oakley, Knightsen, El Cerrito, Redwood City, San Mateo, Milpitas, Alviso, San Francisco, Palo Alto, Port Costa, El Sobrante, San Jose, Hercules, Richmond, Menlo Park, Benicia, Sunnyvale, San Carlos, Atherton, Belmont, Pinole, Santa Clara, Crockett, Brisbane, Rodeo, Burlingame, Stanford, San Pablo, Bethel Island, South San Francisco, Millbrae, San Bruno, Vallejo, Daly City, Los Altos, Tracy,Birds Landing, Portola Valley, Belvedere Tiburon, Sausalito, Rio Vista, Pacifica, Mount Hamilton, Cupertino, Holt, Strawberry, San Quentin, Campbell, American Canyon, Corte Madera, Half Moon Bay, Suisun City, El Granada, Mill Valley, Saratoga, Isleton, Montara, Larkspur, San Rafael, Moss Beach, Stockton, Greenbrae, Fairfield, Kentfield, La Honda, Los Gatos, Ross, Ryde, Mountain House, Modesto, Lathrop, San Anselmo, French Camp, San Gregorio, Loma Mar, Fairfax, Novato, Holy City, Redwood Estates, Lyoth, Vernalis, Manteca, New Almaden, Stinson Beach, Walnut Grove, Coyote, Napa, Woodacre, Westley, San Geronimo, Thornton, Lodi, Pescadero, Nicasio, Woodbridge, Courtland, Sonoma, El Verano, Vineburg, Boyes Hot Springs, Petaluma, Acampo, Galt, and Penngrove