Midpoint Law Group

In California SB94 legislation prohibits the collection of advance fees for loan modifications as specified. Among other provisions new Civil Code Section 2944.7(a)(1) provides as follows: Notwithstanding any other provision of law it shall be unlawful for any person who negotiates attempts to negotiate arranges attempts to arrange or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation paid by the borrower to do any of the following: (1) Claim demand charge collect or receive any compensation until after the person has fully performed each and every service the person contracted to perform or represented that he or she would perform. Since SB94 attorney advertising Loan Modification services are required to post a disclaimer which states: IT IS NOT NECESSARY TO PAY A THIRD PARTY TO ARRANGE FOR A LOAN MODIFICATION OR OTHER FORM OF FORBEARANCE FROM YOUR MORTGAGE LENDER OR SERVICER. YOU MAY CALL YOUR LENDER DIRECTLY TO ASK FOR A CHANGE IN YOUR LOAN TERMS. NONPROFIT HOUSING COUNSELING AGENCIES ALSO OFFER THESE AND OTHER FORMS OF BORROWER ASSISTANCE FREE OF CHARGE. A LIST OF NONPROFIT HOUSING COUNSELING AGENCIES APPROVED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) IS AVAILABLE FROM YOUR LOCAL HUD OFFICE OR BY VISITING WWW.HUD.GOV. For more information view our http://www.businessconsumeralliance.org/Tips/Loan-Modification/Loan-Modification-Roundup---Alerts-Issues-and-Trends-178"""">Resource Guide on Loan Modification Roundup - Alerts Issues and Trends~~