Loan Modification Requests Imploding in California

by admin ~ June 24th, 2009.

California loan modification requests continue to be reported with increasing volumes.  Many California homeowners need jumbo mortgage refinance loans, but they do not qualify as the jumbo lending has tightened significantly. Governor Schwarzenegger implemented another California foreclosure moratorium to help distressed homeowners in his state, but is it helping?

Many Wall Street analysts covering the home-builder sector remain skeptical of talk of a sustained recovery. “Overall, the California construction companies we met with echoed what we have been hearing throughout the U.S.: that there was clear momentum in sales in the spring, but concerns still remain around the sustainability of the improvement we have seen,” said Barclays Capital analyst Megan McGrath in a note recapping a recent industry conference.   “The availability of credit, to both builders themselves and to borrowers seeking home loans, continues to be challenging,” McGrath wrote. “While it appears that banks and mortgage lenders are willing to do some construction-only loans to builders, land-related financing appears to be relatively non-existent.”  Read the original article California Housing Recovery Slow as Loan Modifications Mount online.

Category: Foreclosure news, Mortgage News, Published Loan Relief Articles, foreclosure prevention | Tags: , , ,

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