California Loan Modification

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Loan Modification Help Center – How are California mortgages foreclosed?

At the Loan Modificatin Help Center, we see many people throughout California who are facing foreclosure, or who are in danger of facing foreclosure, and they want desperately to get as much information as possible.  Information about foreclosures, on how to keep their homes and especially about California home loan modifications.  One of our primary goals is to keep people in their homes, to help people avoid foreclosure and to provide excellent home loan modification services.

One of the reasons a California loan modification company can be effective is that they can negotiate with the mortgage company if they have a home loan modification attorney.  

We aim to provide information to people seeking to stay in their homes, especially information on how California mortgages can turn into foreclosures.  The primary method of foreclosure in California involves what is know as a “non-judicial foreclosure” which does not involve court action.  When a deed of trust is initially signed, it usually contains a provision which, upon default, allows a trustee to sell the property in order to satisfy the default loan.  The trustee acts as a representative of the lender to carry out the sale, which usually occurs in the form of an auction.

At the Loan Modification Help Center, our loan modification attorneys educate people regarding the California foreclosure process, including the fact that California has a requirement known as the one-action rule.  This means that if a foreclosure is completed by non-judicial means, a second action to recover a deficiency judgment is not permitted.  Using a judicial foreclosure, a lender may recover a deficiency judgment in certain circumstances.  California’s foreclosure process also has very strict notice requirements, and the mortgage documents are required to contain the “power of sale” language that allows for this type of foreclosure method.

Any California foreclosure process also requires:

A notice of default

A minimum 60-day period before a foreclosure can move forward

The borrower must receive a 20 day notice before any foreclosure sale

Foreclosure sales must take place on any business day between the hours of 9AM and 5PM and must occur at the location referenced on the notice of sale.

Having a trustworthy California loan modification attorney working with you is vitally important to avoid foreclosure and keep your home.  The incredible amount of laws, regulations, dates and other statutes to keep in mind throughout the process are massive and overwhelming.  The average person wouldn’t know how to negotiate with lenders, keep track of dates, fill out all the paperwork, and the million other details necessary to protect against foreclosure.

If you’re trying to avoid foreclosure, or if you’re if you think you might be in danger of foreclosure and don’t know what to do, contact a qualified California Loan Modification Attorney today and get educated.  The information a loan modification attorney has can help you avoid a foreclosure, keep your home and keep your family in the neighborhood where they belong.

Loan Modification Help Center – Who Qualifies for a California Loan Modification

Most people facing foreclosure or some other financial hardship don’t really know whether or not they qualify for a California loan modification.  If you get a loan modification, your monthly payments could be cut by as much as 60%, allowing you to continue to make your payments and stay in your home.  A California home loan modification attorney can sit down with you and discuss your situation, helping you to know whether or not you actually qualify.

According to the Department of Treasury “Anyone with high combined mortgage debt compared to income or who is “underwater” (with a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification.”  The federal government altered the standards a person has to meet to qualify for a home loan modification after hundreds of thousands of people started to fall into foreclosure or fall dangerously close to foreclosure.  This radical change also includes borrowers who show other indications of being at risk of default.  These signs of risk may include a spouse losing a job, a loss of revenue (such as a pay cut) or other financial hardship.

This federal loan modification program applies to homeowners and borrowers who are unable to make (or are struggling to make) payments which exceed 38% of their monthly income.  Meaning that if your  take home pay is ,000 a month and your mortgage payment is ,000 a month, your struggles to pay that mortgage bill could qualify you for a home loan modification.

Qualifying is just the first part however, because you then need to negotiate with a lender.  The lender has to agree to lower the interest rate or reduce the principal amount to bring the payment to 38% of the borrower’s income.  This program is designed to help homeowners, people who want to live in their homes for a long time.  Speculators, or those who bought homes for investment purposes, are not eligible.  

Knowing if you qualify for a California home loan modification can be a difficult process to navigate, and having a California home loan modification attorney on your side can make the process much easier.  Loan modification attorneys understand how complex the process can be, and can lend their experience to homeowners who do not know what to make of all the forms and paperwork.  Also, California loan modification attorneys can work on your behalf, making phone calls and sending faxes, which can be a time consuming endeavor.  Most homeowners trying to stay in their homes are working multiple jobs and do not have the time to talk to a government agent or wait on hold with a bank representative for one, two or three hours.  A California home loan modification attorney can take that weight off of your shoulders and allow you to handle the rest of your life without worrying about your home.  Contact a qualified California home loan modification attorney today and see if you qualify for a home loan modification.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

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.

5 Questions To Ask Your California Loan Modification Attorney

Job losses, unstable sub-prime loans, and a generally slow economy have contributed to an unprecedented rise in mortgage defaults throughout California. And as more and more people face the risk of foreclosure, more and more are turning to loan modification: an agreement between lender and borrower to change the terms of the mortgage to help the latter stay in the home. With government support, loan modification has helped over half a million homeowners get back on track. But will it work for you?

It largely depends on how much your California loan modification attorney can help. While there are lots of firms to choose from, it pays to shop around and find a loan modification attorney California who fits your requirements. Before signing any deals, here are five questions you should ask your California loan modification attorney.

What are your methods?
Just as each homeowner’s situation is different, each loan modification attorney California has his own way of solving the problem. At the very least, make sure he or she has a game plan in mind, and studies your case before doing so. Otherwise, there’s a lot of guesswork involved, and you don’t want to take that risk when your home is at stake.

How much do you charge?
Loan modification fees can vary from a few hundred to several thousand dollars. Ask your California loan modification attorney exactly how much the process will cost from start to finish, with no hidden fees. Don’t agree to pay anything up front; if they ask for part or all of the fee at the outset, it’s most likely a scam.

How much experience do you have?
Many loan modification firms sprung up barely two years ago, just as the foreclosure boom was starting. Most of them, unfortunately, are just taking advantage of the demand. Make sure your loan modification attorney California has been in the field long enough to know how it works. Ask for references and call up previous clients for firsthand feedback.

What’s your expertise?
While loan modification generally works the same way, each California loan modification attorney has his own strong points. Some may have more connections with the big banks, while others specialize in smaller sub-prime lenders. Choose a loan modification attorney California who has worked with people in similar situations as you.

Do you have a backup plan?
Sometimes, loan modification simply doesn’t work–some people don’t agree with the bank’s offer and some are just too deep in debt. Your California loan modification attorney should give you alternatives in case your request doesn’t get approved, or at least refer you to other parties who can help.

Loan Modification Help Center – Banks are Working with California to Modify Home Loans

Did you know that Bank of America has been working with the state of California to grant loan modifications to tens of thousands of people?  Odds are you did not, which is one of the many reasons you probably need a California loan modification attorney.

Bank of America offered to modify around 100,000 home mortgage loans handed out by Countrywide Financial, one of the main mortgage companies that gave people subprime mortgages.  The loan modifications took place during the first four months of this year.  The California loan modifications were geared towards lowering people’s monthly payments on primary mortgages to 34% of borrower’s income.  This particular program only addressed subprime loans made to the riskiest customers and pay option loans.

If you think you missed out on your chance at a California home loan modification do not worry, California loan modification attorneys are still working day and night to keep people in their homes.  Even in some of the most dire financial situations, a California loan modification attorney can work with your lender, mortgage company or bank to renegotiate the terms of your mortgage loan.  At the Feldman Law Center for example, they have experience negotiating with banks such as Bank of America, Wells Fargo, Washington Mutual, JP Morgan Chase and others.

You might think banks would be crazy to even listen to an offer to modify your loan and that you are stuck trying to pay ,500 a month on a loan that once cost only ,000 a month.  However, California loan modification attorneys are at work every day getting homeowners just like you a better deal.  Lower interest rates, extended terms, late fees can be waived, loan principals could be decreased and other options are available to get your monthly mortgage payment back under control.

Banks across the country recognize that multiple foreclosures could spell doom for them.  If homeowners continue losing their homes, banks will be left high and dry with those mortgages.  Foreclosures are the last resort of any bank, and especially now they are willing to discuss loan modifications.  In a loan modification, a California loan modification attorney will act on behalf of the homeowner to renegotiate the terms of a mortgage loan in order to get a lower monthly payment.  In different situations, banks and lenders have agreed to lower interest rates, extend the term of the mortgage loan, eliminate late fees, a principal reduction of the mortgage and other options that lower the overall monthly payments for the borrower.

If you are currently in a situation where you are facing the possibility of a foreclosure, you should contact a California loan modification company today.  Their experience and knowledge can help you get lower monthly payments which will allow you to stay in your home.  You may not have experience negotiating with banks, but qualified loan modification companies do and can use that experience on your behalf.  Instead of wresting with lenders, paperwork, stress and negotiating, contact a skilled California loan modification attorney today.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

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.

What to Expect from a California Loan Modification Attorney

What to Expect from A California Loan Modification Attorney

With all the misinformation floating around out there, many people are uncertain what to expect from a loan modification attorney. While it is possible to conduct a successful loan modification by yourself with your lender, many people find the delays, poor communication and lack of information frustrating and overwhelming. This article is aimed at giving others a basic outline of what a loan modification attorney can and cannot do for you.

To start with, the Attorney will schedule a time with the client for an interview. During the interview the Attorney gets to know the client and their situation. This helps the Attorney get a sense of where the client is personally and financially, allowing them to begin forming a Letter of Hardship which will be used by the Lender later on in the process.

After this preliminary interview, the Attorney will request information from the client. This information includes the principle balance of the loan, interest rate, monthly payment amounts, and the equity of the property, to name a few items. Mortgage documentation like the loan application, Good Faith Estimate and Final Closing Statement will also be requested by the Attorney in an effort to fully understand the terms and status of the client’s loan. The client is also expected to submit to the Attorney past paystubs, W2’s, pension payments and other documentation that supports the client’s income and current financial situation. All of this information is gathered and processed by the Attorney’s office so that they will be able to accurately represent the client’s situation to the Lender through a Letter of Hardship.

After assessing the client’s case, the Attorney will prepare a Qualified Written Request to the Lender and then submit a loan modification request with a complete package of supporting documents prepared from the information gathered from the client. During this time the Attorney will usually be in constant contact with the bank in an attempt to do several things. First of all, if the client is in danger of foreclosure, they will take steps to stop or postpone the foreclosure while the bank reviews the loan modification request. They may also try to postpone an acceleration clause in the mortgage. All of this will take place as the Attorney attempts to renegotiate the original mortgage. If that is not possible, they may work with the bank to arrange a short sale or deed in lieu of foreclosure. In negotiating a loan modification, the Attorney may try to change the loan from an adjustable interest rate to a fixed rate, lower the interest rate, change from interest only to fully amortized or have the principle on the mortgage lowered.

Before being approved for a permanent loan modification, many borrowers may be placed in what is known as a trial loan modification. This is a preapproval of the borrower’s loan modification request and an attempt by the Lender to see if the borrower will be able to make their new payments should a permanent loan modification be approved. Failing to make a trial payment will usually disqualify the borrower from a loan modification. It is important to note that the loan modification process can take anywhere from 60-90 days, which may discourage some borrowers. However, an Attorney will try to halt the foreclosure proceedings while the loan modification process is underway.

Since the introduction of the federal programs Making Homes Affordable (MHA) and Home Affordable Modification Program (HAMP), Lenders have been switching many clients over to these programs since the banks receive government subsidies for processing borrowers through these programs. This has resulted in delays from both Attorneys and the Lenders since they are forced to refile documentation for the new programs and start the process over again. These programs are beneficial for the borrower however since these programs generally result in lower payments and interest rates on a permanent loan modification.

It is important for the client to remember that both Attorneys and Lenders are extremely busy with the large volume of loan modifications being processed at this time, so communication times may not always be ideal. Generally the Attorney will contact the borrower ever week or so to give the client an update on the process, but sometimes the update may be no more than ‘the file is still being reviewed by the Lender’. However, the Attorney is usually in constant contact with the bank ensuring that they are responding to the Attorney’s requests in a timely fashion. During the negotiation process the Attorney may require additional information from the client, and it is important to get that information to the Attorney as soon as possible. Additionally, Attorneys to not usually include any litigation that should arise during the negotiations as part of their loan modification fees, and clients should expect additional fees should they decide to use the Attorney for litigation.

As of October 11, 2009, Attorneys in California are not allowed to collect advanced payments for their services. This includes retainers and monies placed in trusts to be dispersed to the Attorney at a later date. Attorneys may only collect payment for services as they are performed, so the client will be notified what has been done and how much it cost from the Attorney every step of the way. Be wary if a loan modification Attorney asks you for upfront payment, as it is a sign the Attorney is engaging in unethical practices.

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 A+ BBB Home Loan Modification Programs | San Diego

For A+ BBB California Mortgage Loan Modification Services go to www.yourhomestart.com

In April 2009, the Obama administration took steps to bolster the troubled housing market by implementing the Homeowner Affordability and Stability Plan (HASP). With a billion total budget, the plan aims to help a projected four million homeowners over the next three years by reducing monthly interest rates and encouraging borrowers to adopt a loan modification plan. Among those banks committed to Obama’s plan are three of the nation’s largest; JP Morgan Chase, Wells Fargo, and Citigroup are all dedicated the effort.

Homestart provides A+ BBB rated loan modification service to customers of these banks as well as Bank of America, US Bank, Wachovia, Countrywide and many others. Homestart’s established personal relationship with the country’s leading mortgage lenders has made it one of the nation’s leading loan modification service companies, and they are one of the few loan modification companies to have the accredited A+ rating from the Better Business Bureau, as well as a license issued by the California Department of Real Estate (DRE).

Although California is currently seeing a slight decline in foreclosure activity, the rate of foreclosures in recent years is staggering, especially considering California is home to one in nine Americans and has 8.5 million houses. Furthermore, with an unemployment rate as high as 12.5 percent, Californians will continue to rely on the HASP as well as the California Mortgage Foreclosure Prevention Act, which went into effect June 15, 2009 to help them through the tough times.

HomeStart’s extensive experience working in the loan modification industry provides them with great expertise in working through even the most difficult applications and terms. Contact Homestart at anytime to discuss your financial hardship- we will listen and maintain the highest level of confidentiality. We have an entire team of experienced loan modification consultants who can help answer any questions you may have, regardless if you pursue a loan modification through HomeStart.

For more information please go to www.YourHomestart.com

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California and Nationwide Laws to Encourage Home Loan Modification

As of June 16th 2009, California’s Foreclosure Prevention law took effect.  This law says a bank can’t foreclose on a mortgage without trying to renegotiate the terms of the loan or giving three months notice to the homeowner.

This bill was passed in February, and is very much like President Obama’s HAMP (Home Affordable Modification Program) plan which began in March.  HAMP is a billion home loan modification initiative making it easier for homeowners to qualify for a home loan modification.  Both of these are designed to encourage banks to work with homeowners using payment plans or home loan modification.

“California is ground zero for foreclosures. We’re getting about 80 to 90,000 foreclosure filings every month. That’s one every 30 seconds, so until we start mitigating the number of foreclosures, our economic recovery is going to be hampered,” –Assemblyman Ted Lieu.  Author of the California Foreclosure Prevention law

What this means is that banks are going to need to attempt to work with homeowners through home loan modification.

Home loan Modification is when the bank agrees to a change in the terms of the mortgage.  These changes can include lowering the interest rate, and/or changing the rate from variable to fixed.  A lowering of initial principal of the loan, and an extension of the duration of the loan are also possible with a home loan modification.

If the lender doesn’t renegotiate the borrower still has 90 days until the bank can step in and seize the house.  This will allow the borrower a little time to think of an alternative such as negotiating a short sale with the bank, or consulting a professional home loan modification specialist.

A short sale is when the homeowner sells the house for less than its value, and the bank accepts the money and erases the rest of the debt.  Banks will sometimes do this because it is preferable to them owning a house it may take months to sell under in the current housing market.  (A market they helped to create incidentally, but that is another story.)

A home loan modification specialist is just what the name suggests.  A person or group who specializes in home loan modifications, and the laws and regulations surrounding them; who can help the homeowner  navigate their way though a home loan modification process.

Whatever approach you take to solving your foreclosure problem, it is important to act quickly.  Each day you delay is a day closer to losing your home, and no one wins in that situation.

To learn more about home loan modification visit Legal Loan Bailout.

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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.

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