Feldman Law Center – Congress Modifies HOPE for Homeowners; CA Senate passes SB 94
The Federal bill HOPE for Homeowners was passed in the summer of 2008 to help prevent foreclosures on the more than 400,000 homes that were facing it. In the first seven months that the law was enacted, the law helped exactly one family stay in their home. That’s right, one. Recently (May, 2009), Congress passed a bill that augments the original HOPE for Homeowners legislation to make it more effective.
In April 2009, in California, State Bill 94 cleared the Senate Judiciary Committee and awaits approval by the Senate Appropriations Committee. State Bill 94 was proposed by Senator Calderon (D-Montebello) and was designed to crackdown on some of the dishonest, disreputable, and predatory firms that are popping up hoping to profit from the misfortune of others. The main focus of the bill is to prevent loan modification firms from requiring payment up front for their services.
While it is possible to negotiate with the lender yourself or to hire a non-profit agencies, when it comes to staying in your home you should look for the most effective and efficient means possible. Hiring a loan modification attorney to help negotiate new terms on your loan can mean the difference between avoiding bankruptcy, foreclosure and a short sale and…not avoiding them. The important thing is that you are able to get out of your financial mess and stay in your home.
Truth is, thousands of loan modifications are successfully negotiated by private sector firms in California and throughout the country. This is important to remember when considering your options. It would be foolish to trust someone who promises something they can’t deliver. It would also be foolish to ignore help from someone who is willing and able to assist. If you are drowning, and someone that has been standing on the bank pulling people out offers you a hand, shouldn’t you take it?
We will continue to hear grumbling about the economy, and what “got us into this mess.” We will continue to hear proposed legislation to regulate, modify and change rules and regulations in the various industries directly linked to this financial crisis. And we will continue to hear pleas from senators, congressmen, banks, loan modification “experts,” and any number of people whose direct interests are involved.