By clicking the button above you agree the phone number you provided may be used to contact you (including autodials, text messages, and/or pre-recorded calls). The Homeowner’s Bill of Rights was drafted by the Legislature to ensure that every owner has a meaningful and equal opportunity to obtain any and all available options on loss mitigation including loan modification or any of the different alternatives to foreclosure, and Gomez & Simone knows how to enforce these powerful laws. One option that can help is called “mortgage modification.”. California's New Loan Modification Laws and Suspended Lawyers. If your mortgage is in arrears and you are struggling or unable to make payments on credit card, medical, insurance, or utility bills, filing for Chapter 7 or Chapter 13 bankruptcy may be your best option. California law bans dual tracking, which is where a servicer simultaneously evaluates a borrower for a loan modification and pursues a foreclosure of the property. ���Os��_���!᝜}dJ����SO���K�P����_��C������@�n~��L�z������t�������t�w��V�t���Mz��߯ý�5e�1�U'F&� %d.=��Ww7y�iп̫���˫������?��>{������� ��K\��;�QQ����n�/ON���ON�o�a9U{�|�O?�. A modification also may involve reducing the amount of money you owe on your home by forgiving or canceling a portion of the mortgage … stream of the modified loan is greater than the amount that would be. A loan modification is a restructuring of your mortgage in which you and your lender agree to modify the terms of your home loan. I just want to thank you for your assistance and patience. Attorney Gary Lee Kane and his associates promised desperate borrowers help with mortgage modifications and collected fees from their unsuspecting victims. Our governor signed S.B. (a) The Legislature finds and declares that any duty servicers may have to maximize net present value under their pooling and servicing agreements is owed to all parties in a loan pool, not to any particular parties, and that a servicer acts in the best interests of all Take a look at your lender’s policies on loan modification. Mortgage modification as a type of "loss mitigation," the process by which lenders help homeowners avoid foreclosure. If the borrower misses the 120 day deadline for submitting a loan modification application, there’s still protection in the new rules. We are commited to your privacy. With both HAMP and traditional modifications, you can: Change your loan type to a fixed-rate mortgage; Extend the term up to 40 years; Reduce the interest rate to 2%; Reamortize past-due amounts; Reduce the overall principal through a principal deferment; Waive late fees and penalties Bankruptcy may be a good option. 94, and so now everyone is prohibited from taking "advance" fees to assist with a loan modification for a borrower. The Top 10 Myths about Bankruptcy in California eBook, Home Loan Modification Fraud: What You Need to Know, Orange County Lawyers Run Mortgage Modification Scam. Mortgage modification can make your payments manageable and can make the difference between keeping your home and losing it to foreclosure. First, non-profit mortgage modification companies may not accept fees up front. If you can’t negotiate the necessary changes to your home loan, what can you do? ]%�'���$�����C����-� ��LEs�x�CH��D�5h���:A3mI�`0 u����8]�ʁd �)�ąƘ����^�Kf4-���tEc�!7�8�Hs��"����,��y� �� ݒ 4��1��5�Z �ŀ�t�]�ʁ����50r����PC��M�s���p9?��0���� 6א�yK�\ he`��e4�%Aƞ\F���Q��;@��y>�o�����+GW��T��6����h-��au o\Z��� Unfortunately, thieves and scammers know that homeowners facing foreclosure are particularly vulnerable and desperate for help. More importantly, if a complete loan modification application has been submitted to the the servicer by the 120 day point, no foreclosure can be begun. 94, and so now everyone is prohibited from taking "advance" fees to assist with a loan modification for a borrower. We help people file for bankruptcy relief under the Bankruptcy Code. Call (800) 872-5925 - Howard Law is dedicated to providing our clients with a range of legal services in Loan Modification and Foreclosure cases. We are a debt relief agency. The scammers collect the fee and disappear. (1)If a borrower submits a complete application for a first lien loan modification offered by, or through, the borrower’s mortgage servicer, a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent shall not record a notice of default, notice of sale, or conduct a trustee’s sale while the complete first lien loan modification application is pending, and until the borrower has been provided with a written determination by the mortgage … Get local legal help for your Loan Modification issues. In order to prevent more homeowners from foreclosing, the United States government has issued … Consumer Alert on Advance Fees for Loan Modifications Fraud Warning Regarding Home Mortgage Relief Consumer Alert: What You Can Do to Protect Yourself from Getting Ripped Off in Real Estate and Home Loan Relief Scams That means mortgage modification scams are popular with the unscrupulous. View his full profile here. At trial, the jury unanimously found the lawyers guilty and awarded the victims damages of more than $200,000. It is an essential condition of the transaction, imposed by the laws of California. recovered through the disposition of the real property security A modification alters the terms of the existing loan. ”. You cannot be charged late fees while your servicer is making a decision on your completed loan-modification application, while you are making timely payments under an approved modification, or … The first option to consider is obtaining a loan modification or a refinancing of the loan on more favorable terms. “ A short message, before our meeting with the attorney. Mortgage modifications aren’t for everyone. h��ZkS�����b>f�n�y?R[�I��6��J�� o�E�r�����lK��ݛ��4��>����6�3�-�@iǤ%�t!�2�b06�Y�@%�Ɓ*f=]���� ��[�M���XE(�)�c�p_��c%XYYńS�dQxR8!�e�Kp����D�n4w��9�Dj���� ��SLz�i&=����$t�u��XU9|8iNHp��I���c-% ! Loan Modification Fraud and Foreclosure Rescue Scams. Even if you’re not asked to pay an advance fee, you should check up on the mortgage modification company and your specific counselor to see if other consumers have had problems with them. Contact us today. This prohibition includes attorneys and causes some change in law firm practices. Familiarize yourself … In a recent California appellate court case (G047462), three defendants lost an appeal of a court order to pay more than $4 million in restitution and fines for running a loan modification scheme.. Loan modification scams in California are a type of theft. 636 0 obj <>stream What Mortgage Loan Workouts Are For. They can only collect a fee after the modification is complete. mortgage loans when the modification is in the best interest of. These counselors are often part of not-for-profit organizations and are licensed by the US Department of Housing and Development and the California Bureau of Real Estate. But, again, be sure you are dealing with a reputable firm. Until recently, many courts have been siding with lenders in loan mod cases, M. Erik Clark is the Managing Partner of Borowitz & Clark, LLP, a leading consumer bankruptcy law firm with offices located throughout Southern California. Loan modification is a big subject, something we get asked about a lot. California loan modification laws also prevent loan modification companies from offering their services to homeowners after a Notice of Default has been filed with the county and require all loan modification companies to be licensed by the California Department of Real Estate. In addition, the federal government offers the Home Affordable Modification Program (HAMP) for qualifying borrowers; HAMP can reduce your payments, lower your interest rate, and more. If you don’t feel comfortable calling up the bank and asking to modify the terms of your loan, there are professionals and programs available to help. If a mortgage modification counselor asks you to pay a fee, don’t do it! )However, whereas the national mortgage settlement was only applicable to the five settling banks and their customers, the Homeowner Bill of Rights extends the reforms addressed in the nationa… %PDF-1.7 %���� That means mortgage modification scams are popular with the unscrupulous. Law Office of William S. Dunlevy assists clients in the Los Angeles, California area. Restrictions on fees: You cannot be charged a fee for applying for a loan modification. Your lender may be willing to extend the term of your loan, lower your interest rate, or give you a grace period so you can get back on your feet. The law firm in question set up at least 3 fake non-profit mortgage modification companies to draw in struggling borrowers and charged the borrowers large fees up front. Please find your servicer listed below and call them directly to find out if you qualify for the CalHFA Loan Modification Program. Penal Code 470 PC California’s forgery law prohibits knowingly altering, creating, or using a written document intending to commit a fraud. Choose the Southern California location closest to you. LAWS SURROUNDING LOAN MODIFICATIONS ■ In October 2009, Governor Arnold Schwarzenegger signed Senate Bill 94 (Calderon) which prohibits any person, including real estate agents, mortgage brokers, and lawyers, from demanding, charging, or collecting an advance fee for loan modification services prior to the completion of those services. When your mortgage bills are more than you can handle, you’re looking for any solution that can help you keep your loan in good standing and stay in your home. best interest of investors when the net present value of the income. In addition, the main attorney involved was disbarred and is no longer eligible to practice law in the state of California. California Department of Consumer Affairs. They’ll help you evaluate your finances and decide what modifications to ask for. This article, which will be updated as developments warrant, lists actions Congress, governors, federal and state agencies, and businesses are taking to protect consumers in light of the COVID-19 epidemic. Protecting Consumers. California Foreclosure Laws January 24, 2009 — Loan Modification Department California lenders can foreclose on mortgages or deeds of trust using a judicial or non-judicial process. Call (800) 872-5925 - Howard Law is dedicated to providing our clients with a range of legal services in Loan Modification and Bankruptcy cases. (a) The terms of any guaranteed loan may be modified by written agreement between the holder and the borrower, without prior approval of the Secretary, if all of the following conditions are met: (1) The loan is in default ; (2) The event or circumstances that caused the default has been or will be resolved and it is not expected to re-occur; § 36.4315 Loan modifications. Generally, that modification may be deemed to be in the. November 18, 2009. Your application for loan modification must be processed through the servicer that currently services your loan. If you’re struggling with mortgage payments and other debt, contact us today for a free case evaluation and consultation. This prohibition includes attorneys and causes some change in law … They’re similar to bankruptcy in that way, but bankruptcy also helps millions of Americans every year keep their homes and get back on track with their finances. The lender understood this point when agreeing to make the loan. Your attorney can negotiate on your behalf with the banks; they have plenty of experience and know all of the relevant regulations and laws that affect your mortgage. Chances are that you’ve never renegotiated the terms of a loan before. Homeowners shouldn’t get the wrong idea. Without the cash pressure of other debts, many borrowers find they can afford their mortgage payments. Work to negotiate the terms of your loan, lower your interest rate, or obtain a grace period if you’ve missed mortgage payments. Your lender doesn’t want you to default on your loan; most lenders have entire departments dedicated to helping borrowers make their loans work. A California Court of Appeals has sided with a homeowner and says that the homeowner's claims against the bank for botching her loan modification can proceed. In California, it is illegal for foreclosure consultants to collect money for services before they are performed. 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