California Real Estate Fraud Report

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29
Jan

Loan Modifications Often a Scam That Victimizes Homeowners

Homeowners in default with their risky low-interest loans have something new to worry about: so-called loan modification “experts”, “consultants”, or “counselors”, as they variously call themselves.

California Civil Code generally forbids such businesses from collecting an upfront fee for their services from already strapped consumers once the Notice of Default (NOD) has been recorded. An upfront fee may only be legally demanded if the homeowner is not yet in default and there is a reviewed advance fee agreement on file and approved by the California Department of Real Estate.

Consumers should especially avoid any loan modification service that advises the homeowner to stop making mortgage payments, refuse calls from their lender (note: lenders actually calling the homeowners?) and to let the loan modification company speak with the lender. This has SCAM written all over it.

Speaking personally, I have never encountered a person who claims to do loan modifications who actually did so successfully. All promise to send me references, none ever have. The ones with a business number are hard to reach and return phone calls less frequently than the average loan officer or real estate agent.

Read the Full Article in the Redding Record Searchlight.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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