Going to a gun fight with with a knife isn't likely to end very well. With the passage of SB 94 this is exactly what the California legislature and the Governor are asking California homeowners do. The sweeping law, that will be signed next week by Governor Schwartzenegger will make it a crime for anyone, including attorneys to accept a fee in advance for the purpose of loan modification.
The bill authored by Rep. Calderon was heavily backed by banking interests and lobbyist for the banking industry. The law carries an urgency provision which makes it take effect immediately upon the Governors signature.
Oddly enough, the bill does not make any provision for banning advance fees earned by attorneys and others who work on behalf of banks and loan servicing companies prior to a successful loan modification. These lawyers are still able to collect large fees from banks to ensure that the collection and foreclosure process works to the banks benefit.
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If you have been a victum of paying for a loan modification up-front prior to the loan being modified - is there any way a person can get their money back? Should a person report the company charging these fees up-front? If so, to whom should this information be supplied?
ReplyDeleteIf you contracted a third party to get a loan modification, and they were not able to get the modification, it depends on the terms of the contract if you are to get a refund. The first thing to do is contact the company that you paid.
ReplyDeleteIf you were defrauded in some way, that is already illegal in every state. Contact your local states attorney generals office if you believe you have been a victim.
i paid 1300 and only saved 3 dollars a month and that was only for 3 months and they told me it was going to take 90 days and took 180 days do you think thats legal ?
ReplyDeleteSteven,
ReplyDeleteThat sounds like a bad deal. You ought to get legal advice from an attorney licensed in your state before you agree to such an important thing.
If you think you were defrauded or cheated in some way - first ask for your money back. After exhausting the "asking nicely" approach, threaten legal action, if that doesn't work go the the AG in your state.
I paid almost $3500 in January for a 1st & 2nd loan modification. The 2nd was modified, but the 1st is still pending, after almost 10 months. I've been ready to drop this company because they haven't helped me, but they've stated that they helped me get to a "forebearance" agreement stage, so they get to keep the money. Now that SB 94 is in effect, can I request at least a partial refund?
ReplyDeleteI would ask for a refund but SB 94 does nothing about past fees collected.
ReplyDelete