New law?

[denny566]

Has anyone heard of a law going into effect whereby no modification company can collect a fee up front anymore?

[darkdays]

Actually I did read that somewhere yesterday. Sorry I can't remember where but if you google it you should find it. I don't know the effective date of the new law. It might be under the Fair Debt Practices Act that I saw that.

[davephx]

I believe most states have that law CA for sure but don't recall if its Federal. It was to stop all the dishonest ones that get fees and run. In CA even an attorney can't charge a retainer up front from what I recall in my massive reading.

[BobandArlyn]

Davephx, you are right, NO UP FRONT FEES even by attorneys--at least in the State of California. Here is the State's webpage on this criminal activity.

State of California - Department of Justice - Stop Loan Modification Fraud

Arlyn

[Catherine]

Thank you for link Arlyn. Hmmmmm I wonder if it would do any good to flood the AG's complaint form with the fraud the banks/loan servicers are still doing against homeowners on this web site alone? I wonder what Mr.Brown would say or do if he realized the scams we face are far worse predatory actions than these fly by night companies? Wonder too if these loan companies are by the same brokers that lied to us to get us into these loans in the first place. Moved on to the same victims in another way. The heart of the fraud needs be addressed with REAL consequences I have yet to see for contacting our lenders and doing it on our own. They seem to make or break the rules has they see fit. There doesn't seem to be anything more than a list of excuses for denials. I read an article about the letter of agreement (which I have a copy saved) that several of our banks and lenders signed up for in 2007 with Arnie that said they would streamline ARM's in California, but the ink dried and so did any real action to back that up. I have reached the point I am so jaded when I read anything that claims help is on the way. I HOPE for the next wave of homeowners facing this they never go through what we have. Somebody needs to grow a pair and put a stop to it, Catherine