California Loan Modification

Archive for the ‘California Law SB 94’ Category

Loan Modification Help Center – SB94 Details

Governor Schwarzenegger recently signed a bill into law known as SB94. This bill, authored by California State Senator Ron Calderon, the Chair of the Senate Banking Committee, is designed to help homeowners protect their best interests. The bill forbids California loan modification attorneys from accepting “advanced upfront fees.” This bill, which is intended to help protect homeowners from loan modification scam artists, could have the unintended consequence of prohibiting legitimate attorneys from helping people on the brink of foreclosure.

SB94 Details

SB94 will have the following affect on California loan modification attorneys, law firms and companies (including real estate companies and real estate brokers):

• California loan modification law firms, and all other entities, would no longer be allowed to accept upfront fees for their services.

• All California loan modification attorney teams must inform the consumer that they can do the loan modification on their own or with the assistance of a government approved nonprofit.

• The relationships between real estate brokers and attorneys will be severely diminished.

The Loan Modification Help Center
has done a great deal already to protect consumers and homeowners alike, and this law will simply alter how the Loan Modification Help Center accepts fees. For many shady or underhanded loan modification operations, this will surely shut them down, or risk jail time and fines for the violators.

Challenge for Homeowners?

California homeowners have had a difficult few years; between the difficult financial crisis, the loss of equity in many homes and the overall state of unemployment, people are struggling to keep their homes. In the past, many homeowners who were in trouble could turn to a California loan modification attorney because there were only a few out there and very few scams. Using a qualified California loan modification attorney can help any homeowner keep their home, avoid foreclosure and get their monthly mortgage payments far lower. However, when the economy turned sour, homeowners were turning everywhere for help and many were taken advantage of. These scams led the general public to distrust every California loan modification attorney, regardless of their background.

For homeowners, the challenge will be to find a qualified, experienced and legitimate California loan modification attorney who can turn their situation around. Finding a competent, effective California loan modification attorney became difficult because people were almost assuming that anyone who could help with a loan modification was a thief. Fortunately for homeowners in California homeowners, there are law firms which can help them get a loan modification. At the The Loan Modification Help Center, our California loan modification attorney team has a long track record of protecting people’s homes. In addition to the numerous testimonials on their website, there is a long line of people who are grateful for the Loan Modification Help Center’s assistance.

If you are a homeowner who is facing a difficult financial challenge, you should contact a qualified California loan modification attorney today. Keeping your home should be your top priority, and so should be finding highly skilled people to help you in this endeavor.

Visit us at The Loan Modification Help Center
or call 800-486-9836.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

More California Lawyers in Trouble for Foreclosure Activities

The State Bar’s loan modification task force obtained the resignations of three more California attorneys as a result of misconduct related to their loan modification activities. It also placed another attorney on inactive status, charging his work poses a substantial threat to the public, and has undertaken similar efforts against two other lawyers.

In addition, JAMES PARSA [#153389], a southern California lawyer who advertised his loan modification work on television throughout the state, resigned Oct. 21. He faced interim suspension from practice as a result of a 2001 misdemeanor conviction for sex with a child under 18 that he never reported to the bar.

Parsa, 44, advertised heavily throughout California for the past several months, offering to help homeowners facing foreclosure. Although he provided evidence to the bar that he was in fact working on cases, an investigator uncovered two 2001 misdemeanor convictions for sex with an underage girl. The bar court ordered that Parsa be placed on interim suspension Oct. 16, but his resignation made the suspension moot.

The State Bar created a 10-person loan modification task force in March after receiving thousands of calls from homeowners complaining that lawyers have done no work after taking fees purportedly to help avoid foreclosure. The task force had 738 active investigations underway last month.

It earlier released the names of 16 attorneys it was investigating for possible misconduct related to loan modification. Four of the six who resigned or face inactive enrollment were on that list.

“We are very pleased that we have been able to remove these practitioners from the practice of law quickly in order to protect the public,” said Interim Chief Trial Counsel Russell Weiner.

Until last month, attorneys were able to legally accept advance fees from borrowers for residential loan modification work and other forms of mortgage loan forbearance services. Lawyers’ services were in demand by foreclosure relief companies and operators that could not otherwise receive payment until contracted or promised loan modification work was completed. However, on Oct. 11, Gov. Schwarzenegger signed SB 94, which prohibits attorneys and any other persons from collecting an advance fee for residential loan modification and mortgage loan forbearance services. The measure took effect immediately. Details about the new law are at the Department of Real Estate home page, www.dre.ca.gov.

New law prohibits advance fees for lawyers doing foreclosure work

Gov. Schwarzenegger signed Senate Bill 94 Oct. 11, immediately prohibiting any person, including attorneys and real estate licensees, from collecting an advance fee to perform foreclosure relief services. The new law, adopted as an emergency measure, closes a loophole that permitted foreclosure scam artists to exploit the ability to charge advance fees.

It is now unlawful for any licensed attorney or real estate agent “who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation paid by the borrower … to claim, demand, charge, collect, or receive any compensation until after the [attorney or agent] has fully performed each and every service the licensee contracted to perform or represented that he, she, or it would perform.”

The advance fee prohibition for loan modification and forbearance services applies to residential property containing four or fewer dwelling units.

The new law also requires the following written disclosure in at least 14 point bold type regarding loan modification and/or loan forbearance services prior to entering into any fee agreement with a borrower:

“It is not necessary to pay a third party to arrange for a loan modification or other form of forbearance from your mortgage lender or servicer. You may call your lender directly to ask for a change in your loan terms. Nonprofit housing counseling agencies also offer these and other forms of borrower assistance free of charge. A list of nonprofit housing counseling agencies approved by the United States Department of Housing and Urban Development (HUD) is available from your local HUD office or by visiting www.hud.gov.”

If loan modification or other loan forbearance services are offered in Spanish, Chinese, Tagalog, Vietnamese or Korean, a translated copy of the disclosure above must be given to the borrower in that language.

A violation of the law can result in fines and up to a year in jail.

The text of SB 94 is available at leginfo.ca.gov; click on “bill information.” Information is also available from the California Department of Real Estate at dre.ca.gov.

Loan Modification Law – California State Senate passes Bill 94

The California State Senate has passed Senate Bill 94 (”SB 94?), legislation proposed by Sen. Ron S. Calderon (D-Montebello), Chairman of the Banking, Finance & Insurance Committee. The senate passed the bill on May 21, 2009, by a vote of 21 to 14. It is now in the state assembly where it has been read once and “held at desk,” which means that it’s awaiting referral to a committee.

Senate Bill 94 is intended to protect California homeowners from scam loan modification companies.

In my view, the problems with SB 94, as written include:

1. It was created to protect consumers from loan modification “scammers” who charge distressed homeowners up front fees and deliver nothing in return, but it was written without the benefit of accurate data on the contribution being made by the legitimate loan modification industry in California. Without knowing how many homeowners the private sector loan modification firms save each month, or the sustainability of the modifications obtained by the private sector, it would not be possible to design a solution in the best interests of homeowners and the state’s economy.

2. The SB 94 bill, as written, is based on a fundamental misconception. As stated in the in bill’s narrative:

“It is not necessary to pay a third party to arrange for a loan modification or other form of forbearance from your mortgage lender or servicer. You may call your lender directly to ask for a change in your loan terms. Nonprofit housing counseling agencies also offer these and other forms of borrower assistance free of charge.”

While both of these statements are technically true, this language ignores the fact that there are also reputable private sector firms that homeowners may choose to hire to help them negotiate with their banks when seeking a modification of their mortgages. Private sector firms, including those licensed by the state’s Department of Real Estate and/or law firms offering that such services, have helped tens of thousands of California homeowners get their mortgages modified. With the number of foreclosures continuing to increase each month, it would seem clear that the state’s homeowners would not benefit from any legitimate avenue being overlooked or unfairly maligned.

3. Defrauding a homeowner has always been against California law, so in that sense, SB 94 is redundant. When you consider that “scammers” who did in fact defraud consumers in conjunction with the promise of a loan modification, did so in violation of existing law, it would seem that a new law making it illegal to charge an advance fee when offering to assist a homeowner with a loan modification would be unlikely to prevent future scammers from attempting to do the same.

4. Legitimate firms offering to assist troubled homeowners could be regulated and monitored, without requiring these firms to operate at a financial disadvantage by disallowing advance fees. The process of obtaining a loan modification is not similar to other real estate transactions in several key ways:

A. The process can take six weeks, or six months… and in some cases even longer. The lenders and servicers are not consistent in how loan modifications are handled or on what basis they are granted.

B. There is no escrow, or objective standard for “satisfaction,” in conjunction with a loan modification transaction, and therefore there is no assurance that a company would receive payment from the homeowner once the mortgage has been modified.

These are just a few of the issues with SB 94. The law is attempting to protect homeowners, but is actually protecting the lender guaranteeing that homeowners will not be adequately represented when dealing with the lender. The lenders will take advantage of this and will offer homeowners loan modifications that do not help their situation.

More California Law SB 94 Articles

California Abolishes Advance Fees for Loan Modifications

California Governor Arnold Schwarzenegger approved Senate Bill 94 today hereby abolishing the practice of advance fees for loan modifications in the state.

At the same time, a similar measure – Assembly Bill 764 – was rejected with the following statement from the governor:

“To the Members of the California State Assembly:

I am returning Assembly Bill 764 without my signature.

Although I support the prohibition of individuals charging advance fees for mortgage loan modifications, I do not agree with the provision of this bill that will only allow fees to be collected if a modification is successful. This could adversely affect legitimate businesses that provide loan modification services. As such, I am signing SB 94 that accomplishes this prohibition against advance fees without unnecessarily harming legitimate companies.

For these reasons, I am unable to sign this bill.”

It is a victory for the loan modification industry and homeowners alike in that SB 764 would have virtually ensured the collapse of all third party assistance.

SB 94, like AB 764, abolishes advance fees but has a more liberal approach as it allows for the work and payments to be completed in stages of the loan modification process. This gives protection to consumers while also allowing mitigation companies to be fairly compensated for their work.

Still, some companies will not survive SB 94 as the abolishment of advance fees is counter to what most in the industry are doing. But for companies such as American Mitigation Law Group, the passage of SB 94 simply means business as usual.

The Del Mar-based company has had a system in place for months now that closely mirrors the concept of SB 94. While the company says it will need to make some minor changes to full comply with the newly-passed bill, their decision long ago to not charge advance fees makes them one of the few companies ready for the effects of SB 94.

Above all, the bill marks a significant victory for the state’s homeowners. Requiring advance fees was a common practice by fraudulent companies and it was often difficult for those in need of help to distinguish the good from the bad.

It’s also a victory in the sense that there are still hundreds of thousands of foreclosures that could hit the market in the coming years. A legitimized system of third party assistance will prove critical to the long-term ability of homeowners to avoid foreclosure.

Related California Law SB 94 Articles

Feldman Law Center – Congress Modifies HOPE for Homeowners; CA Senate passes SB 94

Feldman Law Center – Loan Modification

The U.S. Senate, as well as the California State Senate, are both at work to help homeowners staÿ solvent and foreclosure. The U.S. Senate and the California State Senate are also both at work to make banks happÿ, balance budgets, and do anÿ quantitÿ of things that might or might not serve ÿour best interests as a house owner.

What do ÿou need to know? Whÿ should ÿou care?

The Fed bill HOPE for Homeowners was passed in the summertime of 2008 to help prevent repos on the more than four hundred thousand houses that were facing it. in the 1st 7 months the law was passed, the law helped preciselÿ one familÿ staÿ in their home. That is’s right, one. Latelÿ ( Maÿ, 2009 ), Congress passed a bill that augments the original HOPE for Homeowners legislation to make it better.

In April 2009, in California, State Bill 94 cleared the Senate Judiciarÿ council and awaits approval bÿ the Senate Appropriations Committee. State Bill 94 was proposed bÿ Senator Calderon ( D-Montebello ) and was engineered to crackdown on some of the deceptive, dodgÿ, and predatorÿ firms that are turning up hoping to benefit from the setback of others. The target of the bill is to prevent loan alteration firms from requiring paÿment up front for their services.

Feldman Law Center – Foreclosure Assistance

while it is possible to debate terms with the lender ÿourself or to hire a non-profit agencies, when it comes to staÿing in ÿour home ÿou need to look for the most efficient and effective means possible. Hiring a loan alteration lawÿer to help barter new terms on ÿour loan can implÿ the difference between avoiding bankruptcÿ, foreclosure and a short sale andnot avoiding them. The critical thing is that ÿou’re able to get out of ÿour financial mess and staÿ in ÿour house.

Truth is, thousands of loan alterations are successfullÿ negotiated bÿ personal sector firms in California and across the countrÿ. This is important to remember when thinking about ÿour options. it might be sillÿ to trust someone who promises something that theÿ can’t deliver. it might also be sillÿ to blank help from someone who is prepared and readÿ to help. if ÿou’re drowning, and somebodÿ which has been standing on the bank pulling people out offers ÿou a hand, shouldn’t ÿou take it?

we will continue to hear grumbling about the economÿ, and what’got us into this mess.’ we are going to continue to hear proposed legislation to control, change and change rules and rules in the various industries directlÿ linked to this fiscal crisis. And we are going to continue to hear pleas from senators, flesh pressers, banks, loan modification’experts,’ and anÿ quantitÿ of folk whose direct interests are concerned.

Think about what is best for ÿou. Are ÿou readÿ to arrange a loan alteration without delaÿ with ÿour lender? The Feldman Law Center is reliable, reputable, and readÿ to help ÿou staÿ in ÿour house. We specialize in loan modifications and have lawÿers on staff who know the business. Call the Feldman Law Center todaÿ.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

legal waiver

The data contained herein is provided for general information and advertising uses onlÿ and is not planned to conveÿ a legal option nor legal help for anÿ special case or situation. Nothing in this article shall create an attorneÿ-client relationship. Nothing sent to this law office through email shall represent an attorneÿ-client relationship. Nothing contained in this article shall be interpreted to be a guarantee or prophecÿ of result. Previous results are supplied for general information purposes onlÿ and do not guarantÿ, warrantÿ or forecast a similar end result regarding anÿ future matter. Results achieved relÿ on individual circumstances and not everÿbodÿ will qualifÿ or achieve success in restructuring their mortgage.
.

Find More California Law SB 94 Articles

Feldman Law Center – Congress Modifies HOPE for Homeowners; CA Senate passes SB 94

Feldman Law Center – News by Feldman Law Center — The U.S. Senate, as well as the California State Senate, are both at work to help homeowners avoid bankruptcy and foreclosure. The U.S. Senate and the California State Senate are also both at work to make lenders happy, balance budgets, and do any number of things that may or may not serve your best interests as a homeowner.

What do you need to know? Why should you care?

The Federal bill HOPE for Homeowners was passed in the summer of 2008 to help prevent foreclosures on the more than 400,000 homes that were facing it. In the first seven months that the law was enacted, the law helped exactly one family stay in their home. That’s right, one. Recently (May, 2009), Congress passed a bill that augments the original HOPE for Homeowners legislation to make it more effective.

In April 2009, in California, State Bill 94 cleared the Senate Judiciary Committee and awaits approval by the Senate Appropriations Committee. State Bill 94 was proposed by Senator Calderon (D-Montebello) and was designed to crackdown on some of the dishonest, disreputable, and predatory firms that are popping up hoping to profit from the misfortune of others. The main focus of the bill is to prevent loan modification firms from requiring payment up front for their services.

While it is possible to negotiate with the lender yourself or to hire a non-profit agencies, when it comes to staying in your home you should look for the most effective and efficient means possible. Hiring a loan modification attorney to help negotiate new terms on your loan can mean the difference between avoiding bankruptcy, foreclosure and a short sale and…not avoiding them. The important thing is that you are able to get out of your financial mess and stay in your home.

Truth is, thousands of loan modifications are successfully negotiated by private sector firms in California and throughout the country. This is important to remember when considering your options. It would be foolish to trust someone who promises something they can’t deliver. It would also be foolish to ignore help from someone who is willing and able to assist. If you are drowning, and someone that has been standing on the bank pulling people out offers you a hand, shouldn’t you take it?

We will continue to hear grumbling about the economy, and what “got us into this mess.” We will continue to hear proposed legislation to regulate, modify and change rules and regulations in the various industries directly linked to this financial crisis. And we will continue to hear pleas from senators, congressmen, banks, loan modification “experts,” and any number of people whose direct interests are involved.

Think about what is best for you. Are you prepared to negotiate a loan modification directly with your lender? The Feldman Law Center is trustworthy, reputable, and ready to help you stay in your home. We specialize in loan modifications and have attorneys on staff who know the business. Call the Feldman Law Center today.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

Resources:

Feldman Law Center: Profile – Business Exchange

Feldman Law Center – Loan Modification Video

Find More California Law SB 94 Articles