In a recent California appellate court case (G047462), three defendants lost an appeal of a court order to pay more than $4 million in restitution and fines for running a loan modification scheme.. Loan modification scams in California are a type of theft. ]%�'���$�����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��� There are many ways to modify your mortgage, including: Lowering the interest rate of the loan; Extending the term of the loan; Reducing the … Loan Modification Laws in California Help from an Orange County Loan Mod Attorney. Penal Code 470 PC California’s forgery law prohibits knowingly altering, creating, or using a written document intending to commit a fraud. Chances are that you’ve never renegotiated the terms of a loan before. investors. One option that can help is called “mortgage modification.”. That gives you the space and time you need to reorganize your finances without worrying about the bank selling your home out from under you. The first option to consider is obtaining a loan modification or a refinancing of the loan on more favorable terms. Most mortgage counselors are not allowed to accept fees upfront in California, so stay away from ones who try to! 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 … Unfortunately, thieves and scammers know that homeowners facing foreclosure are particularly vulnerable and desperate for help. A modification alters the terms of the existing loan. The Homeowner Bill of Rights was part of California's former Attorney General Kamala D. Harris’ response to the state’s foreclosure crisis and largely came about as a result of the national mortgage settlement between 49 states and certain banks. How much mortgage debt can I discharge in bankruptcy? Mortgage modification can make your payments manageable and can make the difference between keeping your home and losing it to foreclosure. ���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?�. prev | next. First, non-profit mortgage modification companies may not accept fees up front. California's New Loan Modification Laws and Suspended Lawyers. Our governor signed S.B. 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. Until recently, many courts have been siding with lenders in loan mod cases, This prohibition includes attorneys and causes some change in law firm practices. A mortgage loan workout, also called a mortgage modification, is a plan detailing how to restructure a home loan when the homeowner is facing foreclosure.Lenders consider the seriousness of the hardship, the balance of the loan, earned equity, and the borrower’s future financial prospects. 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. California is one of the leading states in the nation with a large foreclosure problem. 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. Call (800) 872-5925 - Howard Law is dedicated to providing our clients with a range of legal services in Loan Modification and Foreclosure cases. 94, and so now everyone is prohibited from taking "advance" fees to assist with a loan modification for a borrower. 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. But, again, be sure you are dealing with a reputable firm. View his full profile here. Your application for loan modification must be processed through the servicer that currently services your loan. Attorneys can also help with a mortgage modification. We’re standing by to help you on your journey to financial security. When you file a personal bankruptcy, you can have your unsecured debts (such as credit card and medical debts) discharged — that means they’re completely forgiven. 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. Loan Modification Fraud in California. Bankruptcy also has several other benefits, including the automatic stay, which stops foreclosure and collection proceedings. California Department of Consumer Affairs. They can only collect a fee after the modification is complete. mortgage loans when the modification is in the best interest of. They’ll help you evaluate your finances and decide what modifications to ask for. I just want to thank you for your assistance and patience. Unfortunately, thieves and scammers know that homeowners facing foreclosure are particularly vulnerable and desperate for help. § 36.4315 Loan modifications. Our governor signed S.B. What Mortgage Loan Workouts Are For. CFR. (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; The automatic stay prevents all collection actions during the bankruptcy process, including foreclosure. This prohibition includes attorneys and causes some change in law … “ A short message, before our meeting with the attorney. Work to negotiate the terms of your loan, lower your interest rate, or obtain a grace period if you’ve missed mortgage payments. LOAN MODIFICATIONS CALIFORNIA CIVIL CODE SECTION 2923.6 2923.6. If you can’t negotiate the necessary changes to your home loan, what can you do? They kept the fees but never made any effort to modify their clients’ mortgages, defrauding borrowers of thousands of dollars each. 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). 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. 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. However, mortgage modification does come with risks of its own. You have been very helpful and I appreciate your professionalism and well balanced attitude. Restrictions on fees: You cannot be charged a fee for applying for a loan modification. Get local legal help for your Loan Modification issues. California's New Loan Modification Laws and Suspended Lawyers. In California, it is illegal for foreclosure consultants to collect money for services before they are performed. 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. best interest of investors when the net present value of the income. November 18, 2009. This field is for validation purposes and should be left unchanged. This is a permanent modification of the terms of the original mortgage loan. stream of the modified loan is greater than the amount that would be. 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