KKBS Warns Consumers: Loan Modification Services
It’s no secret that the struggling economy and real estate market have forced many homeowners to seek loan modifications in order to avoid foreclosure. Unfortunately, many companies and individuals (including attorneys) prey on consumers who are desperate to save their homes. These hucksters claim that they will assist in the loan modification process for thousands of dollars in fees. When the loan modification is unsuccessful — which is too often the case — the desperate homeowner is in an even deeper hole than before. Preying on the vulnerable in these circumstances is a despicable and immoral act. In California, it is now illegal.
In response to increasing consumer complaints about these scams, the California legislature enacted California Civil Code Section 2944.7 effective October 12, 2009. Section 2944.7 prohibits persons offering to assist in a mortgage loan modification from charging any compensation until after the person has fully performed each and every service to which the person agreed — in other words, until the loan modification has been achieved.
While this law has been in effect for over a year, many consumers may be unaware of the protections afforded to them. If you wish to hire someone to assist you with a loan modification, do not pay any fees until the loan has been successfully modified. If you’ve been a victim of this practice already, we will help you take legal action to recover your fees. Contact us today for a free consultation.