california loan modification laws

Law Office of William S. Dunlevy assists clients in the Los Angeles, California area. These counselors are often part of not-for-profit organizations and are licensed by the US Department of Housing and Development and the California Bureau of Real Estate. Your lender may be willing to extend the term of your loan, lower your interest rate, or give you a grace period so you can get back on your feet. We’re standing by to help you on your journey to financial security. It’s important to know your rights and know how to spot a scam so you don’t get stuck paying thousands of dollars for nothing. mortgage loans when the modification is in the best interest of. The automatic stay prevents all collection actions during the bankruptcy process, including foreclosure. That means mortgage modification scams are popular with the unscrupulous. View his full profile here. If the borrower misses the 120 day deadline for submitting a loan modification application, there’s still protection in the new rules. With both HAMP and traditional modifications, you can: Change your loan type to a fixed-rate mortgage; Extend the term up to 40 years; Reduce the interest rate to 2%; Reamortize past-due amounts; Reduce the overall principal through a principal deferment; Waive late fees and penalties The lender understood this point when agreeing to make the loan. Loan Modification Fraud and Foreclosure Rescue Scams. 805-330-1950. CFR. This prohibition includes attorneys and causes some change in law firm practices. We are commited to your privacy. They kept the fees but never made any effort to modify their clients’ mortgages, defrauding borrowers of thousands of dollars each. When your mortgage bills are more than you can handle, you’re looking for any solution that can help you keep your loan in good standing and stay in your home. Foreclosure is scary and overwhelming and it’s natural to look for options to help you stay in your home. h��ZkS�����b>f�n�y?R[�I��6��J�� o�E�r�����lK��ݛ��4��>����6�3�-�@iǤ%�t!�2�b06�Y�@%�Ɓ*f=]���� ��[�M���XE(�)�c�p_��c%XYYńS�dQxR8!�e�Kp����D�n4w��9�Dj���� ��SLz�i&=����$t�u��XU9|8iNHp��I���c-% ! Attorneys can also help with a mortgage modification. By clicking the button above you agree the phone number you provided may be used to contact you (including autodials, text messages, and/or pre-recorded calls). “ A short message, before our meeting with the attorney. Homeowners shouldn’t get the wrong idea. investors. Late mortgage payments and the threat of foreclosure can be extremely stressful and upsetting. That gives you the space and time you need to reorganize your finances without worrying about the bank selling your home out from under you. Our governor signed S.B. Loan Modification Fraud in California. For example, you can consult with a mortgage modification counselor. In California, it is illegal for foreclosure consultants to collect money for services before they are performed. More importantly, if a complete loan modification application has been submitted to the the servicer by the 120 day point, no foreclosure can be begun. PNC Bank National Association - Orange County, California Loan Modification Lawyer Protecting Consumers. A mortgage loan workout, also called a mortgage modification, is a plan detailing how to restructure a home loan when the homeowner is facing foreclosure.Lenders consider the seriousness of the hardship, the balance of the loan, earned equity, and the borrower’s future financial prospects. Learn your options. In fact, as described below, an Orange County law firm has recently been accused of promising consumers mortgage modifications and then keeping the cash. In a recent case, the scammers were actually lawyers in Orange County. In order to prevent more homeowners from foreclosing, the United States government has issued … However, mortgage modification does come with risks of its own. %PDF-1.7 %���� Unfortunately, you have to be very careful when engaging a company to assist you with a loan modification. Choose the Southern California location closest to you. LAWS SURROUNDING LOAN MODIFICATIONS ■ In October 2009, Governor Arnold Schwarzenegger signed Senate Bill 94 (Calderon) which prohibits any person, including real estate agents, mortgage brokers, and lawyers, from demanding, charging, or collecting an advance fee for loan modification services prior to the completion of those services. They’re similar to bankruptcy in that way, but bankruptcy also helps millions of Americans every year keep their homes and get back on track with their finances. If you’re asked to pay an advance fee, you should report the counselor to the California Bureau of Real Estate and the California Department of Consumer Affairs. Loan modification is a big subject, something we get asked about a lot. Example Hardship Letter - Orange County, California Loan Modification Lawyer The Homeowner’s Bill of Rights was drafted by the Legislature to ensure that every owner has a meaningful and equal opportunity to obtain any and all available options on loss mitigation including loan modification or any of the different alternatives to foreclosure, and Gomez & Simone knows how to enforce these powerful laws. Chances are that you’ve never renegotiated the terms of a loan before. Take a look at your lender’s policies on loan modification. Mortgage modification can make your payments manageable and can make the difference between keeping your home and losing it to foreclosure. In addition, the main attorney involved was disbarred and is no longer eligible to practice law in the state of California. Consumer Alert on Advance Fees for Loan Modifications Fraud Warning Regarding Home Mortgage Relief Consumer Alert: What You Can Do to Protect Yourself from Getting Ripped Off in Real Estate and Home Loan Relief Scams (1)If a borrower submits a complete application for a first lien loan modification offered by, or through, the borrower’s mortgage servicer, a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent shall not record a notice of default, notice of sale, or conduct a trustee’s sale while the complete first lien loan modification application is pending, and until the borrower has been provided with a written determination by the mortgage … California law bans dual tracking, which is where a servicer simultaneously evaluates a borrower for a loan modification and pursues a foreclosure of the property. Contact us today. Get local legal help for your Loan Modification issues. They can only collect a fee after the modification is complete. Reg. Last minute help. M. Erik Clark is the Managing Partner of Borowitz & Clark, LLP, a leading consumer bankruptcy law firm with offices located throughout Southern California. One option that can help is called “mortgage modification.”. Without the cash pressure of other debts, many borrowers find they can afford their mortgage payments. best interest of investors when the net present value of the income. Your lender doesn’t want you to default on your loan; most lenders have entire departments dedicated to helping borrowers make their loans work. How much mortgage debt can I discharge in bankruptcy? This means that if, for example, you falsify loan documents — perhaps altering the borrower’s income and resulting ability to … 94, and so now everyone is prohibited from taking "advance" fees to assist with a loan modification for a borrower. If your mortgage is in arrears and you are struggling or unable to make payments on credit card, medical, insurance, or utility bills, filing for Chapter 7 or Chapter 13 bankruptcy may be your best option. A California Court of Appeals has sided with a homeowner and says that the homeowner's claims against the bank for botching her loan modification can proceed. And well balanced attitude of foreclosure can be extremely stressful and upsetting up front and. Promised desperate borrowers help with mortgage payments the main attorney involved was disbarred and no! This is a restructuring of your home loan from an Orange County loan Mod.! People to take advantage of you refinancing of the terms of your home and losing it to foreclosure of. More than $ 200,000 s natural to look for options to help you on journey! Modifications and collected fees from their unsuspecting victims listed below and call them directly to find out if you consult... 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