The Sacramento mortgage industry will be convening at the Sacramento Convention Center on Friday, February 26. Lenders hope to attract Sacramento-area borrowers who want to explore their options for a more affordable repayment plan. The event offers an eight-hour foreclosure prevention workshop that will hope to inform borrowers of their options, including Making Home Affordable, a federal program that helps borrowers work out modifications or refinance their mortgages.
The event will attempt to improve upon a similar session held in December 2008 that attracted 1,000 borrowers and 19 lenders. At that event, many borrowers received help on the spot, but others received promises of help that never came to fruition. At the end of 2008, the country was paralyzed by recession and lenders were slow to respond to the housing crisis. More than a year later, lenders have a better understanding of how to work with borrowers and rewrite loan terms so that the borrower is set up for success.
The latest numbers from the Treasury Department provide reason for borrowers to attend Friday's event with optimism. California leads the nation in securing permanent loan modifications through Making Home Affordable. And, 20,000 more California homes received trial modifications in January than in December. Lenders such as Bank of America and Wells Fargo approved thousands more permanent modifications in January than December, likely reflecting the pressure the federal government has applied to banks.
Still, not all borrowers will find a permanent solution. Unemployment remains high in the Sacramento area and a modification requires monthly income. And many who receive trial modifications, do not receive an offer for a permanent modification even if they successfully complete the trial period without missing a payment.
Friday's free workshop will be from 1 p.m. to 9 p.m. at 1400 J St. Mortgage lenders and nonprofit home loan counselors will be available for borrowers to speak with. If you would like to discuss your options after the session, you may contact a specialist who has worked with many borrowers to achieve lower mortgage payments.
