It is now illegal in California for anyone or any company to charge homeowners an upfront fee to assist with a loan modification or to help to rescue them from foreclosure thanks to SB 94 which was just signed into effect by Governor Schwazenegger on October 11, 2009. Although special licensing and permission was needed by the California Department of Real Estate for Real Estate Brokers and Licensed Attorneys to charge these fees, many, many companies exploited the fact that if done properly, it was legal. That is no longer the case, it is simply just Illegal now. It was too easy for these scam artists to prey on troubled homeowners. And let me tell you, they did. I know far too many people who paid thousands of dollars only to lose everything.
Here are some tips for homeowners in trouble-
•1. DO NOT PAY UPFRONT FEES- This is illegal- Report them to Attorney General's Office at 1-800-952-5225 or www.ag.ca.gov/consumers/general.php
•2. Don't ignore the lender-talk to them, if they say you can't do that, keep calling back until you talk to a representative who is helpful, they seem to say "No" a lot, when, in reality, you can, don't get discouraged, just keep trying. They do not want to foreclose, despite their attitudes with you sometimes. You just have to get through to that person who will help you. Try to always be nice.
•3. Talk to your Realtor!!! Don't be embarrassed, this is what they do, they will be more than happy to help you with your options and to guide you through the process.
•4. Don't pay your mortgage payments to anyone but your lender or loan servicer.
•5. Don't sign anything without someone looking it over first,-your trusted loan officer, your trusted Realtor, your attorney, consult someone-don't be desperate and embarrassed, seek guidance.
•6. Don't transfer title or sell your house to someone claiming to be saving you from foreclosure. Many bad things can happen. Don't trust these people, they almost always have motives that benefit them, not you.
•7. Call The U.S. Department of Housing and Urban Development, also known as HUD which offers FREE Foreclosure Avoidance Counseling through different non-profit agencies, the number is 800-569-4287.
•8. Try HOPE NOW at www.hopenow.com or 888-995-HOPE.
•9. Be Careful. Although it may be hard to talk to someone you know because of embarrassment, these are usually people who have your best interest at heart and who will be supportive. You would be surprised how many people, successful people, who are in your same situation.
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