Education program targets homeowners who are heading for foreclosure.

California’s new 90 Days of Hope program is an educational program designed to inform homeowners of the steps they should take to avoid having their homes taken through the foreclosure process.

The program is based on the following issues:

• A lender may start foreclosure proceedings when a homeowner is 90 days late on their mortgage payments.
• 90 days is the average time that a homeowner has to take action before their rates are scheduled to increase.
• 90 days is the time it could take to work out an alternate payment program with your lender before any payments are missed.

Governor Schwarzenegger has worked out agreements with several lenders that states that the lenders will proactively work with borrowers before their loans reset, as well as streamlining the process for evaluating their ability to pay. The program also keeps payments at the starter interest rate for a period of time for those who can afford the starter rate but not the reset rate.

Lenders who have agreed to participate in this program are as follows:

1. Carrington Mortgage Services
2. Countrywide Home Loans
3. HSBC Mortgage Services
4. GMAC Mortgage, LLC
5. Home Loan Services, Inc.
6. Homeq Servicing
7. Litton Loan Servicing
8. OCWEN Loan Servicing, LLC
9. Option One Mortgage
10. Wilshire Credit

This is certainly not a big list, but many of these are the companies that your loan has likely been sold to after your financing was complete.

While the 90 Days of Hope program doesn’t offer any concrete steps for avoiding foreclosure, it does serve to educate Californians on how to avoid the foreclosure process. Is it just a lot of political hot air? Maybe! But visit the website anyways - it does provide some important information regarding the foreclosure process and how to avoid foreclosure.

How does this affect Santa Clarita homeowners? Be sure to contact your lender when you see that your financial situation may make it difficult to make your loan payments. Contacting the lender before you miss a payment may make it easier to work out a reasonable compromise with your lender.

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