California says no to Upfront Loan Modification fees

California says no to Upfront Loan Modification fees

If any of you are working in california, you might want to be aware of a new law that California passes prohibiting upfront fees for loan modification services. There have been a lot of scams occuring in this industry, so the state has changed it policy on this and made it a prohibited practice.

Now why is this beneficial to you, well you are providing a service that can help educate them about all of the homeowners options if they are faced with foreclosure, as well as direct them as to new laws in place or illigal practices to be aware of.

Under a new California law, no person or firm offering residential loan modification assistance can collect upfront fees from borrowers to perform these services. Specifically, the law prohibits any person, including real estate licensees and attorneys, from demanding, claiming, charging, collecting or receiving an upfront fee from a borrower in connection with a promise to modify the borrower's residential loan or to do some other form of mortgage loan forbearance. The advance fee prohibition for loan modification and forbearance services applies to residential property containing four or fewer dwelling units.

In addition, HUD approved housing counselors can help borrowers' obtain a loan modification free of charge.

It is our job to educate and provide options, it is there choice to take our advise or not. We must disclose that we are not lawyers or licensed tax professionals, but here is a list of options they might look into to help them in their situation. One of those options....we can buy there house on a short sale, subject to, etc.

Be honest, be upfront, be current, and be thorough!!!


If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125