California Loan Modification Companies May Soon Become a Thing of the Past

Posted on April 25, 2009
Filed Under Home Loan | Comments Off

When a group of consumers who get their roads California State Senator, loan modification company will soon scratch himself out of business or head, since, as we think successfully adapt their models look at the result.

California Senate Bill 1994 (SB 1994) which looks like it could be days away from his Senate ratified the full California State, would forbid the collection of fees in advance to the landlord in connection with loan modifications and who charges will require a fee for the service loan modifications (after they give) the prior information of the state mandate in relation to the availability of no-cost option for the borrower.

The following California State Senator Ron Calderon (D-Montebello), discusses the measure:

More on yesterday's development of the California Political Desk on the California Chronicle:

Senate Judiciary Committee today passed measure, by Senator Ron Calderon protect (D-Montebello) that would be California borrowers who are struggling in the troubled real estate market today.

Bill, SB 1994, authored by Senator Calderon would help a person or a company from charging fees in advance to the borrowers to negotiate a loan modification on behalf of the borrower to avoid. these services free of non-profit housing counselor.

"Economic-time homeowner is difficult enough without having to worry whether they will be cheated if they want to change their mortgages," said Senate President Darrell Steinberg PRO TEM (D-Sacramento). "The bill is common sense that consumers would measure to make it clear to fight, that they can get homeowners with the free credit needs change. I thank Senator Calderon to introduce SB 1994."

Tens of thousands of California faces possible default and foreclosure when they are not in a position to negotiate a loan modification with their lenders are. A cottage industry has to take advantage of these borrowers, foreclosure sprung prey on their fears and their ignorance of the complicated process of foreclosure. The loan modification "consultants" borrowers a fee – often in advance and back – for services that are available elsewhere for free.

"Climate of fear and desperation creates fertile ground for exploitation," said Senator Calderon, the chairman of the Senate Banking, Finance and Insurance Committee. "Borrowers to financial ruin, the mistakenly placed their trust in the so-called consultants who charge fees for limited services, which often leave borrowers turn worse than before."

"Senate Judiciary Committee heard testimony last month about consumer fraud targeting the growing number of people who foreclose," said Senator Ellen Corbett (D-San Leandro), chairman of the Senate Judiciary Committee. "I strongly support the protection of important trust that unscrupulous fraudsters who take advantage of desperate homeowners end to help."

Unscrupulous loan modification consultant will find you lurking outside any reasonable mortgage Trolling for troubled borrowers. Ads that affected their environmental performance hardest by flooding from the foreclosure.

Senator Lou Correa (D-Santa Ana), to support the measure adds: "I have horror stories of my constituents are facing foreclosure is one, and paid thousands of dollars to individuals callous offer false hopes and promises unfulfilled. This should make the crime .

Mon Calderon's measure, SB 1994, cracks on the top of this modification liars loans by prohibiting the taking of lenders, the borrowers loan modification service. Non-creditor may arrange a fee to help the loan modification only after providing the promised services and inform customers that a similar service free of charge by a nonprofit housing consultant for free.

Subsequent dismissal of the Senate Appropriations Committee is the law.