This bill give lawyers a reason to talk lenders into substantial loan modifications  - if you are looking to negotiate more than the typical lender loan mod, you may wish to leverage this new California Loan Modification law.   

Here is a critical piece of Senate Bill SB 1137 -

(b) High foreclosure rates have adversely affected property values

in California, and will have even greater adverse consequences as

foreclosure rates continue to rise. According to statistics released

by the HOPE NOW Alliance, the number of completed California

foreclosure sales in 2007 increased almost threefold from 1,902 in

the first quarter to 5,574 in the fourth quarter of that year. Those

same statistics report that 10,556 foreclosure sales, almost double

the number for the prior quarter, were completed just in the month of

January 2008. More foreclosures means less money for schools, public

safety, and other key services.

   (c) Under specified circumstances, mortgage lenders and servicers

are authorized under their pooling and servicing agreements to modify

mortgage loans when the modification is in the best interest of

investors. Generally, that modification may be deemed to be in the

best interest of investors when the net present value of the income

stream of the modified loan is greater than the amount that would be

recovered through the disposition of the real property security

through a foreclosure sale.

   (d) It is essential to the economic health of California for the

state to ameliorate the deleterious effects on the state economy and

local economies and the California housing market that will result

from the continued foreclosures of residential properties in

unprecedented numbers by modifying the foreclosure process to require

mortgagees, beneficiaries, or authorized agents to contact borrowers

and explore options that could avoid foreclosure. These changes in

accessing the state's foreclosure process are essential to ensure

that the process does not exacerbate the current crisis by adding

more foreclosures to the glut of foreclosed properties already on the

market when a foreclosure could have been avoided. Those additional

foreclosures will further destabilize the housing market with

significant, corresponding deleterious effects on the local and state

economy.

If you have California Real Estate you may wish to speak with an attorney about leveraging this bill (which recently became law).  You may be able to negotiate a principle reduction.

See if you Qualify for Negotiations *First Name *Last Name *Email Phone Please List One Property at a time State of Subject Property Zip Code of subject Property Purchase Price Amt of senior Loan approx Amt of junior Loan approx Amt of third Loan approx Do you live in property  yes   no About when did you take out 1st Loan When did you take out 2nd When did you take out 3rd When did you purchase property Did you move in when purchased Which loans are at leaset 60 days past due  1st   2nd   Both Have you suffered a loss in income -- Please select --yes no Are you still earning income -- Please select --yes no What type of Modificatin are you seeking  1-5 year payment reduction   Permanent Payment Reduction   Principle and Payment Reduction Percentage Payment Reduction Sort -- Please select --%5 %10 %15 %20 %25 %30 %40 more Question / Comments Please send Loan Mod Client Intake Package and List of Fees  yes   not yet Enter the code: