As a response to rising rescue scams of foreclosure, California now came up with a brand new law that has tough requirements for the firms that provide homeowners who face foreclosure with their services. The governor of California signed this bill into full law recently. Over the last two years, real estate brokers and attorneys that are unscrupulous abused their roles of trust to exploit desperate homeowners that wanted to stay away from foreclosure. The loophole, which let this abusive practice go on, has closed by now and homeowners need to stay away from any person that charges up-front fees for services of foreclosure relief.
The brand new law makes things unlawful for licensed attorneys or agents of real estate that negotiates, tries to negotiate, arranges, tries to arrange, or somehow provides services in modifications of loans for mortgages or any kind of forbearance on mortgage loans for fees or any other compensation that the borrower needs to pay. This would include claiming, demanding, charging, collecting, or getting any form of compensation until the agent or attorney has already completely performed every service that the licensee had contracted him to perform or that he represented to perform.
Up until today, brokers of real estate and licensed attorneys had the right to charge fees in advance under particular restricted circumstances. Scam artists of foreclosure oftentimes tried to exploit such exceptions. This brand new law has ended this particular loophole.
Within the month of August, threatening potential civil and criminal prosecution, Brown sent out almost four hundred consultants of mortgage foreclosure to register into his office to post a bond worth $100,000. Brown even ordered an excess of two dozen companies in foreclosure assistance to substantiate any suspect claims that were made on the World Wide Web, as well as direct mail advertising. After this, a sweep all over the nation was made in the month of July, which led to several lawsuits against individuals and companies that ripped off tons of homeowners who were merely looking for relief from mortgage. All in all, Brown has looked for court orders to completely close down at least thirty companies and brought about criminal charges, as well as received long prison sentences for a lot of deceptive consultants of loan modification.
Consultants of loan modification are still exploiting homeowners that are desperate for such a relief. Within this year, the office of Brown has obtained almost three thousand complaints against consultants of loan modification and their overall businesses. This happens to be a huge jump compared to 2008, where not even two hundred filed complaints could be found.
Here are several tips for homeowners to follow:
• Never pay fees upfront.
• Never ignore letters that your loan servicer or lender sends you.
• Never transfer titles or sell your home to “rescuers of foreclosure”.
• Never pay any payments of mortgage to anybody but your loan servicer or lender.
• Do not sign documents that you haven’t read yet. Always read any documents that are placed before you before doing anything else.
Related posts:
- Procedure of Foreclosure on January 7th, 2009
Different state would have different rules and regulations for the foreclosure.
- A Seminar on Foreclosure maybe Helpful on April 23rd, 2009
Many homeowners are searching for ways to prevent foreclosures.
- Foreclosure Prevention Program on September 21st, 2009
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- Investment in Foreclosure-Few Tips to Remember on November 18th, 2009
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- Foreclosure Price on March 10th, 2009
In case you have to sell your foreclosed property, you will have to know that everything will take place according to rigorous steps, and you must consider them.
