8/27/2010

Advance Fees in California

Even though a law was passed in 2009 in California, there still seem to be advance fees being requested and sometimes paid for in exchange for certain services. Here is important language to read and understand, because there are people who are still trying to take advantage of homeowners who want a loan modification, loan modifications or attempts to avoid foreclosure that just don't work out. And the homeowner loses money.

It is illegal in California, as of October 11, 2009, for a lawyer, real estate broker, real estate salesperson, including corporations and companies, to demand or collect an upfront fee, retainer fee or other advance fee for loan modifications.  There have been, and continues to be, many people who have lost thousands of dollars through misplaced trust. And, if you have experienced this, please click on the link below to find out more about reporting to the Attorney General.

Remember, calling up your own bank is the first step to finding out about loan modifications. A property owner is able to do this on their own, although you may want the assistance of a consultant, because it can be an involved and lengthy process, depending on your bank. But there is no advance fee that can be charged, not until the close of escrow.

See the Dept of Real Estate story.

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