BiggerPockets

Loan Modification Gets a Modification in California

Thursday, October 22

Loan modification gets a modification in California.  Governor Arnold Schwarzenegger signed Senate Bill 94 on October 11, 2009 that prohibits anyone from charging an advance fee for any loan modification or loan forebearance services in California.  This includes licensed real estate agents and lawyers.  What does this mean for the consumer?  If anyone, and that means ANYONE, is trying to get money up front from you when you try to modify your loan, they are doing so illegally.  If you entered into an agreement with a California-based loan modification company who demanded an advanced fee before October 11, 2009, this law does not apply to you.  However, if you entered into an agreement with a loan modification company in California after October 11, 2009 and had to pay an advance fee, the company is required by law to fully refund the fee.

If you have any questions regarding your Ventura County real estate, please contact the Z Team.  We're always happy to help.

Dave and Pat Zumbrun, The Z Team for Ventura Real Estate

Comments

1. 

   Joshua Dorkin Reply
   over 2 years ago

   That's great news . . . lets see if the other states follow suit (if they haven't started to already). Thanks for sharing!

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