Loan changes lag CA foreclosures

July 2, 2008 2:50:11 PM PDT
A survey of nonprofit mortgage counseling agencies in California suggests more homeowners are losing their homes to foreclosure than receiving loan modifications and other payment workarounds from lenders.

The California Reinvestment Coalition says in its survey released Wednesday that loan servicing companies are not doing enough to help homeowners at risk of foreclosure stay in their homes.

The coalition, a group of nonprofit community advocacy groups, surveyed 42 of the 80 or so independent counseling agencies in the state in April.

The California Mortgage Bankers Association did not immediately respond to a phone message seeking comment.

The coalition wants lenders to lower the principal amount owed by borrowers and be more aggressive in modifying loan terms.


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