Foreclosure Solutions
| A modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default. A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan. A Loan Modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and orrower. | |
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This could result in:
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The borrower may be current, late, in default, in bankruptcy or in foreclosure at the time the application for modification is submitted. California has just passed a new law (SB 94) that makes it illegal for an attorney, law firm or others, including the so-called "attorney-backed" loan modification companies, realtors and mortgage brokers, to accept an up-front fee for a Loan Modification. Put simply, the new law makes it illegal to collect fees before providing the services. This includes dividing such services into stages in order to be able to charge fees in advance. Whatever the intent to protect homeowners, the result is that SB94 will make it more difficult for you, as a California homeowner, to hire an attorney to assist you with your loan modification. Since the law's passage in October, 2009, many attorneys who were ethically assisting homeowners with their loan modifications have said that they are no longer going to provides these services!
Scam artists, the ones who took homeowners' monies and did little to nothing to help them, don't usually care about the law! While we would like to believe that SB 94 will put them out of business, "scammers" and con artists will still try to get around or blatantly break the law. Call the Law Offices Today for your Consultation on your loan modification.
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