Advance Fees For Loan Modifications

October 13, 2009 by  
Filed under Advance Fees for Loan Modifications, Blog

As of October 11, 2009, the governor has signed the Senate Bill 94,  legislation has taken effect immediately. California law has put a restriction on any person, from demanding or collecting an advance fee from a consumer for a loan modifiacation or mortgage loan forbearance.  Advance fees for loan modifications after october 11, 2009 will be fully refunded.

This is going to put a damper on a lot of loan modification companies. Now they won’t be able to charge people up front, which will put a hold on their business.  And if they do continue to do loan modifications, they will have to trust the homeowner to make that payment.  Advance fee agreements being out of the picture, help remove the unethical companies.


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