Loan modification in California can be an unusual and tricky process. A California loan modification really works no differently than loan modification anywhere else, but California borrowers tend to have unique challenges including: larger loan amounts, second mortgages, other properties and greater amounts of other debt.
Loan Modification California Issue 1: Larger Loan Amounts
California homeowners are concentrated largely in its many urban centers including San Diego, Orange County, Los Angeles, San Jose, Oakland, San Francisco and Sacramento. Most states have one or two large urban areas or cities, California consists of many of these running together with home prices within those urban centers much higher than the median US home price. The higher home prices and larger loan amounts takes many borrowers out of the “conforming” loan range and requires special handling by lenders. Additionally, to finance these larger amounts, many California properties have both a first and a second further complicating the CA California loan modification process.
Loan Modification California Issue 2: Other Properties
Additionally, many California homeowners bought more than one property during the real estate boom, leaving them with not one, but multiple loan modification or short sale situations. Additional properties can complicate the loan modification process as the lender will be concerned the homeowner will either move into that other property, or the other property or properties will be a draw on the homeowner’s resources. A California loan modification where there are multiple properties involved complicates matters, but certainly can be overcome.
Loan Modification California Issue 3: Credit Cards and Other Debt
Many California homeowners requesting a loan modification have high amounts of other debt including credit card debt and bank loans. This complicates the loan modification process because, again, the lender may view credit card debt as a draw on consumer resources and decline the loan modification on that basis. The good news is, there are ways to overcome each of these challenges and complete a loan modification in California. Although California issues are unique, they have solutions.
California Loan Modification Attorneys
McFarlin LLP attorneys handle all aspects of loan modification for borrowers in San Diego, Orange County, Anaheim, Costa Mesa, Los Angeles, Huntington Beach, Oakland, San Francisco, Sacramento and throughout California. Our attorneys are available to provide you with honest reliable advice at our Irvine office or over the phone. With a matter as important as loan modification and foreclosure, it is a very good idea to consider hiring a qualified California loan modification attorney to represent you and protect your interests. Call us today at (888) 728-0044.