Could One Phone Call Prevent Most Foreclosures?: 'We are prepared to stand by consumers to provide assistance.'.

SACREMENTO, CA -- As increasing foreclosure rates continue to cause panic, industry experts strongly believe the mortgage havoc is avoidable for most homeowners in distress.

Earlier this year the California Association of Mortgage Brokers urged homeowners, lenders and brokers to look for early signs of default and take action. CAMB's immediate past president, Jack Williams, told NMN he thinks "a high number" can be worked out even though California tops the national foreclosure chart.

Back in February, he said, "Nearly 80% of foreclosures can be avoided if the borrower recognizes the warning signs and contacts their broker or lender immediately to help resolve the problem." Asked whether his prediction has changed, he said, "I'd still say it's pretty high at 70% to 75%, if customers get hold of the lender in time.

"The problem they have is the workouts. If they wait until the last minute to call the lender, then there's not much a lender can do." The main reason why foreclosure is highly preventable right now, he added, "is because the lenders are bending over backwards trying to do workouts." The only drawback to that is time. "Lenders are geared up, but there's all this volume all of a sudden. Therefore it may take from four to six weeks to get it all done."

He is optimistic it can be done. "Not everybody will qualify for a mortgage workout, but if they keep their mortgage current and still have a fairly decent financial situation, lenders will be able to work with them."

He believes having the right perspective can help change the current default and foreclosure risk nightmare into a workable challenge.

"The one thing I would like to stress to the lenders is to make sure they know who they have in their pool of high risk," Mr. Williams said. "Who's got the 2/28s, who's got the 3/27s, who's got the two-year or three-year prepay? And they can tell if someone is starting to make a couple of payments late. They can tell if a customer's history is that they have been paying on time and now all of a sudden they're late, and then they have to deal with the late fee."