California Mortgage Modification Company Helping Diffuse Ticking Time-Bomb

Online, November 10, 2009 (Newswire.com) - The attorney general of California has contacted ten of the major banks in the state to indicate how they plan to handle the "ticking time bombs" of homeowners facing tremendous increases in their payments when option adjustable rate mortgages are recast.

California AG, Jerry Brown, sent written requests to banks including: Bank of America Corp , GMAC, Goldman Sachs, JPMorgan Chase & Co, and Wells Fargo, among others. Responses are expected on or before November 23rd.

Many California homeowners have option ARMs because they offered very low initial rates that change after the specified ARM duration or if the house has too much negative equity - a double-whammy for many homeowners.

There are hundreds of thousands of these loans about to be recast with payments spiking causing great concern for state officials, banks, and homeowners.

RA Law Group, a California law firm and mortgage modification company, recently announced a special program to assist homeowners in obtaining mortgage modifications in light of this potential disaster.

"As residents of California, we know the importance of getting through this crisis," Daniel Jaimes, RA Law Group, explains. "Our goal is to help as many homeowners as we can and that is why we are offering special rates for homeowners seeking a mortgage modification on their option ARM mortgages," Jaimes states.

With hundreds of thousands of option ARM borrowers owing more than their homes are worth, the potential time-bomb has many homeowners scrambling.

Recent legislation to protect California homeowners from scam artists came at an opportune time, forcing many unscrupulous businesses out of the market before the next wave of mortgage modifications hit.

"The legislation was needed," Jaimes explains. "Homeowners should make sure that the mortgage modification company they use is in compliance with the law and do not charge upfront fees. Law firms can, of course, use retainer agreements as we do with other practice areas, and consumers should check with the Bar Association and Better Business Bureau before choosing a law firm or mortgage modification company," Jaimes concludes.

For more information on mortgage modifications please visit www.modificationpros.com or call 888-550-3004.