California Loans News

Attorney General Jerry Brown Jr. issued a warning for Californian real estate consumers and homeowners “to avoid anyone charging upfront fees for foreclosure relief services, especially now that a new state law makes this practice illegal.”

Brown further said, “Over the past two years, unscrupulous attorneys and real estate brokers have abused their trusted roles and exploited desperate homeowners seeking to avoid foreclosure. The loophole that allowed this abusive practice to continue has now been closed, and homeowners should avoid any person charging up-front fees for foreclosure relief services.”

Loan modification work consultants and servicers have continued to take advantage of troubled homeowners desperate for any foreclosure relief service. Brown also disclosed that there have been more than 2,500 complaints received in his office. This was a huge difference compared with those filed last year, which were only 200 complaints filed.

In line with consumer protection, the Times-Herald also offered tips for homeowners. These are the following:
1.    Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
2.    Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
3.    Don’t transfer title or sell your house to a “foreclosure rescuer.” This is a scam to convince homeowners they can stay in the home as renters and buy it back later. It might also be a part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home.
4.    Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
5.    Never sign any document without reading them first.

Complaints could be filed through the attorney general’s office via toll-free number, 1-800-952-5225. Reports of up-front fee demands could also be filed online via the www.ag.ca.gov/consumers/general.php.

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