On October 11, 2009, Governor Schwarzenegger signed Senate Bill 94 (Calderon), and the legislation took effect immediately upon his signature. Thus, California law now prohibits any person, including real estate licensees and attorneys, from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services affecting I – 4 unit residential dwellings.
Agreements entered into and advance fees collected prior to October 11, 2009 are not affected. Advance fees inadvertently collected after October 11, 2009 must be fully refunded.
One of the main reasons for this bill was to protect the consumer from scams whereby homeowners gave money “up front” for these services, and these services were NEVER provided. Many homeowners, trying to modify their existing loans, were contacted by these lenders claiming they could modify the homeowners loan, but needed funds in order to provide this service. After the homeowner gave these companies their funds, the companies magically disappeared and were never heard from again.
If you know of someone who is thinking of modifying their existing loan, please forward this article to them. You will be doing them a huge service.
Would you like to make a comment on this article? At the end of each of these weekly messages, there’s a place at the end of each article for you to add comments. Just Click on “No Comment,” it will open up and you can write your comments here. It’s a great place for you to “let YOUR thoughts be known on the various articles written. Be My Guest………I‘d love to hear from you! Others would too!
Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com
October 27, 2009 at 3:48 am |
Is there a place to report real estate agents and lawyers who are asking for 3,500 up front: First Financial in San Diego working with “Law Centre for Wealth Management in Corona, CA. (2280 Wardlow Circle, suite 205, Corona 92880) (951) 582-3510.
October 28, 2009 at 2:35 am |
Nancy:
Please take this to your local Board of Realtors and ask for assistance. This is definately against the law adn needs to be reported.
October 30, 2009 at 12:19 am |
What about clients that went to their (Calif) attorney in March of this year, paid $4000 up front and now have heard very litte! Even after requesting a copy of my file FIVE times, he refuses to do so.
Thoughts?
October 30, 2009 at 3:17 am |
Sue:
That is what the Bar Association is for. Report this to the California Bar Association and make sure to send them all documents, and an account of who you spoke with and when you spoke with them. Whenever I call a company, I keep a conversation log, so I can always refer back to it.
Keep me posted.
October 30, 2009 at 4:39 pm |
That’s what I thought as well. We’re filing in small claims today for $4K and $1K in punative citing profes rules of conduct violations as well as he’s fee-splitting in giving a large portoin of those fees to a non-lawyer for ‘consulting’ or a referral fee etc. There’s much more ie they didn’t tell us the mod was declined by the bank but wanted more $ to do a fornsic audit etc… but we’re also told that there are other clients that were referred to him having the same issue; i’ll let you know the outcome when we have one. Have a safe/egg-free Halloween!
November 2, 2009 at 12:57 am |
Yes, keep me posted and I’m glad you are going after them.
November 14, 2009 at 2:36 pm |
What about homeowners outside of calif who retain a calif attorney to mod there outside of calif home. Does this law pertain to them or only ca residents??
Don’t see anything that mentions that. I know a lot of these mod shops advertise all over the country to get clients. Anyone know the answer???
Thanks
November 15, 2009 at 4:55 am |
I don’t believe California attorneys can pratice law in states they are not licenced to practice in.