Help for Homeowner with a "Notice Of Default"

Real Estate Agent with Coldwell Banker

In California the Department of Real Estate put out an article that homeowners facing pre foreclosure/Notice of Default need to be made aware that they are easy targets by third party companies who ask for advanced payment to help the homeowner workout loan modification with their lender.  California Civil Code Section 2945, regulates "foreclosure consultants", which would be anyone who considers themselves to be defined as a "foreclosure consultant", including a real estate licensee.  The code forbids them from collecting any fees in advance for services they may offer Homeowners if a Notice of Default has been recorded against their property. With a Notice of Default issued by a lender, Homeowner should be warned to not pay advance fees for help offered by third party companies.

Homeowners should be advised to seek out the non-profit agencies that can assist these homeowners without charging a fee and real estate brokers who can represent the homeowner for a fee paid after they have completed their work.  There are programs that will go in effect the middle of October - There is Hope


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