Are you still trying to modify your loan with your lender? Please be careful who you hire to help you with your loan modification. You know that in California it’s against the law for anyone to charge you up front fees to help you with a loan modification. If you are going to hire a third party to do the loan modification negotiations, don’t pay anyone until you obtain your loan modification.
Be careful what you sign as well. I had a client who was defrauded by one of these so called “loan modification” companies. First they charged them a $5,000 retainer and then had my client sign a document that placed a lien on their home for $30,000. Well, when they tried to short sell their home, the sale could not close because of that $30,000 lien.
The fraudsters are long gone and now my clients have to file for bankruptcy to remove that lien. I am not sure how the bankruptcy helps in this case because I am not an attorney and this is not legal advise. But it seems to me that these fraudsters just added more wood to the fire and dug a deeper hole for these folks. Because now they will have a bankruptcy on their credit. A bankruptcy will stay on their record for 10 years.
Thank you for taking time to read my blog and for your comments. I am a real estate broker who has been in real estate field for over 20 years and specialize in helping both sellers and buyers with all their real estate needs. If you have any questions regarding the sale of your home or investment property or you wish to buy in the Los Angeles county area, please feel to call her me (562) 916-3237.
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