| Article Index |
|---|
| How to avoid loan modification scams |
| Page 2 |
| All Pages |
TOP federal and state officials announced last Monday a major nationwide crackdown on loan modification scams. California Civil Code 2945 makes it illegal for foreclosure consultants and real estate brokers and agents to contract a loan modification work once a Notice of Default has been filed. Only California attorneys are allowed to negotiate loan modification when a Notice of Default has been filed. If a notice of default has not been filed, foreclosure consultants including real estate brokers and agents cannot collect any money for loan modification until a written agreement with the borrower to modify the loan has been approved by the Department of Real Estate and the contracted loan modification work has been successfully completed.
Question: Are attorneys considered as foreclosure consultants?
Answer: No. California attorneys are licensed to practice law in California and are not included as foreclosure consultant.
Question: What are examples of foreclosure scams?
Answer: The following are examples of foreclosure scams:
Non lawyers collecting down payment for loan modification or other services in connection with residential mortgage.
A scam artist will ask you to sign a deed on your residence and he will take care of paying the mortgage while he allows you to stay in your residence and pay him rent on the property. The truth here is that you are still liable on the mortgage and the scam artist is getting your rent but at the same time he is not paying the mortgage.
Question: What are the ways the scam can be avoided?
Answer: Some of the ways to avoid scam are:
Do not disclose personal information such as your name, address, social security number to anyone who is not licensed to do business of loan modification.
Call the State Bar of California at 1-800-843-9053 to check if the lawyer you are dealing with is an active member in good standing.
If you are dealing with a Real Estate Broker or Agent, call the Department of Real Estate at (916) 227-0770 to verify the legality of any contract proposal by the foreclosure consultants.
If you are a victim of scam, report the case to the State Attorney General Office at (916) 445-9555.
Do not sign anything that you did not read and understand.
Note: This is not a legal advice. We provide free consultation on loan modification only.
| < Prev | Next > |
|---|
