Advantage Home Solutions, LLC

Companies that offer loss mitigation, loan modification, or foreclosure consultant services generally offer to stop foreclosure on homes and/or assist in restructuring the mortgage. Some companies may imply that they have an affiliation with a mortgage lender or with a government agency. Despite such claims, these companies do not have affiliations with any government agency or any special relationship with your mortgage company. Generally, mortgage companies will only deal with the borrower on any issue related to the loan.

Complaints concerning similar offers allege that these companies misrepresent their ability to stop foreclosure, fail to perform services as promised, and generally refuse requests for refunds based on non-performance.

California Law requires that any person who visits your home or solicits, induces, or causes a California resident property owner to contract with, or pay any consideration to a foreclosure consultant must have a bond from a surety in an amount equal to at least twice the fair market value of the real property that is the subject of the contract. In addition, the representative must hold a valid California real estate sales license. The representative must also provide the consumer, in writing, under penalty of perjury, a statement attesting that they are properly licensed and bonded. Failure to comply with these requirements renders the contract void. By law, the contract must also provide for a three-day cancellation right, and no money may be collected prior to performing all the services set forth in the contract.

If your written contract does not inform you of your right to a refund or your right to cancel, you may cancel the contract at any time, without regard to the three day time limit. The Better Business Bureau suggests that property owners first speak with their lender before engaging a consultant.

California law prohibits a company from collecting fees in advance, except in cases where the company has had their Advanced Fee Agreement approved by the Department of Real Estate.