Comments on: California SB 94 Expected to Become Law Today – No More Upfront Fees on Loan Modifications

By: Christine Springer

Christine Springer — Tue, 12 Jan 2010 19:05:58 +0000

I haven't researched the laws for all 49 states. I would suggest running a google search for your particular state. Many states now have laws on upfront fees but I don't have a list of them.

By: Julie Stewart

Julie Stewart — Mon, 11 Jan 2010 18:23:10 +0000

what are the laws for the rest of the 49 states?

By: christine

christine — Tue, 20 Oct 2009 22:05:22 +0000

Agreed! Thanks for your comment!

By: Michael Banks

Michael Banks — Tue, 20 Oct 2009 09:09:20 +0000

.
This is unbelievable! Do these idiot legislators think that any attorney, CPA or other mortgage professional is going to work to negotiate with lenders in hopes of gettng paid by a homeowner who is probably broke? Even if they’re not broke, what’s their incentive to pay? They’ll get a black mark on their credit? Ha! This law would make a lot more sense if the banks cared about negotiating with homeowners, but all they do is give them the runaround.

A new study by Federal Reserve researchers found that government initiatives to stem the country’s mounting foreclosures don’t work because banks and other lenders have more financial incentive to let borrowers lose their homes than to work out settlements. Here’s the story:

“Why Don’t Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures, and Securitization”

http://www.frbatlanta.org/invoke.cfm?objectid=149C4D27-5056-9F12-12C089648203E1FD&method=display

Hampering homeowners who need help fighting the banks who are holding them hostage is shortsighted and just plain stupid. Sure, there are some loan mod scammers, just like there are in every other busiess. OK – prosecute the hustlers. But to require that the pros don’t get paid until after the fact just ain’t gonna work.

M. Banks

By: christine

christine — Mon, 19 Oct 2009 22:54:43 +0000

I think the breadth and depth of the real estate problem in this country took everyone by surprise, and this legislation is an attempt by our government to do something, regardless of whether it makes any sense.

CB, there are still lawyers out there who are helping people. It’s not illegal for lawyers to provide these services, it’s just a lot more regulation and more expense for everyone involved.

If you need a referral, please send me an e-mail. Good luck!

By: CB

CB — Mon, 19 Oct 2009 22:38:36 +0000

It’s amazing to me how corrupt and dumb our legislators are! The effectiveness of HOPE and the lenders in modifying loans has been nothing short of atrocious and they decide to put private loan modification companies out of business? Now it’s illegal to hire a good Attorney to fight our lender against foreclosure. How can our government pass a law preventing us from hiring an attorney?

By: christine

christine — Mon, 19 Oct 2009 21:18:24 +0000

It’s already changed the loan modification industry — even law firms who were helping people with loan mods are closing their doors. It’s not a criticism but the reality of what is happening as a result of the change in the law. There are legitimate people who are helping homeowners and those are the people who are willing to do what it takes to comply with the law. It’s essentially raised the barrier to entry, which is overall a good thing but this bill will limit homeowner’s access to legal representation. No one wants to work for months without getting paid, so those people will leave the industry altogether.

By: Nick

Nick — Mon, 19 Oct 2009 18:52:06 +0000

While I understand your frustration in the way the industry is treated, your statement that “this bill will probably end the loan modification industry in California as we know it” is way too harsh.

As you mention, there are still ways to successfully help people and still be fairly compensated. In my opinion, it helps clean up some of the bad parts of the industry.

For the most part, SB 94 seems like a positive thing.

By: California Strengthens Loan Laws - Real Estate Investing

California Strengthens Loan Laws - Real Estate Investing — Tue, 13 Oct 2009 00:22:27 +0000

[...] signed Senate Bill 94 today which bans the collection of advanced fees for a loan modification. The Foreclosure Industry blog spoke against the measure, To summarize, the bill prohibits persons from charging advance fees to borrowers in connection [...]