it is still illegal for anyone to accept payment in advance for loan modifications!

By
Real Estate Broker/Owner with Independent Real Estate Broker DRE#00972295

In California, it is still illegal for anyone to accept payment in advance for loan modifications: “Senate Bill 94 (SB 94), which took effect Oct. 11, 2009 and prohibits attorneys from charging or collecting legal fees for loan modification services prior to the completion of those services…” 

“California Civil Code, section 2944.7(a)(1) providing that it shall be unlawful for any person who offers to negotiate, arrange or perform a mortgage loan modification or forbearance in exchange for a fee paid by the borrower, to claim, demand, charge, collect or receive any compensation until after the person has fully performed each and every service the person contracted to perform or represented that he or she would perform.”

Below are two links to help you understand this law. 

http://www.calbar.ca.gov/Public/ConsumerInformation/LoanModificationFraud.aspx

http://www.dre.ca.gov/files/pdf/faqs/FAQsSB94.pdf

No matter what anyone tells you, it is illegal for ANYONE to charge you before they provide you service.  You pay them when they complete the loan modification. I’m writing this note on this subject because I still get calls from people who have been defrauded by “someone” who charge them an outrageous fee and did not perform as they promised. 

If you have exhausted all avenues and still have not been able to get your “toxic loan” modified and can no longer keep up with the payments, consider your option to short sale.  Please call me if I can help you short sell your home.  I can be reached at any time at 562-884-6196. 

If you have any questions regarding the sale of your home, please call or email me at: PintoRealty@outlook.com

 

Thank you for reading my blog.  

 

Posted by

Aida Pinto (562) 884-6196
Los Angeles County
Real Estate Broker



The Real Estate Maven : https://www.facebook.com/aRealEstateMaven?ref=hl

 

Short Sale, Probate and standard real estate expert.

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