California Loan Modification - from the CA Department of Real Estate

There are a few thing to consider: http://www.dre.ca.gov/mlb_adv_fees.html

"You must be very careful if you are asked to pay for any of these services in advance, whether in cash, check or by charging your credit card. First, California Civil Code Section 2945, which regulates "foreclosure consultants", forbids anyone who falls under the definition of a “foreclosure consultant”, as well as a real estate licensee, from collecting any advance fees for these types of services if a Notice of Default has been recorded against your property. If your lender has recorded a notice of default, do not pay an advance fee to anyone." (I would add - anyone but an attorney). "

If a homeowner has not had a notice of default filed and the person wishes to hire a real estate broker the California Department of Real Estate says as of todays date only 18 real estate brokers in the state of California may charge an advanced fee.

http://www.dre.ca.gov/mlb_adv_fees_list.html

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Lately I am hearing about attorney backed Loan Modification

What the heck does that mean. Does that mean both the attorney and the person taking the Loan modification money are breaking the law. In my opinion there is a good chance it does. If an attorney is involved - attorneys should be accepting their fees as part of their engagment process -which usually includes a retainer agreement. Attorneys can pay Realtors and Brokers to do work, but they can't split fees.

If you are paying money upfront and you are not writing Larry and Bob attorneys at law on the check - you are probably dealing with people breaking the law. (unless they are one of the 18 entites "approved" on the DRE website.) Why? because if a Loan modification person is taking your money up front and then paying an attorney part of the fee - it sure looks to me like the attorney is sharing legal fees.

If the people you hiring claim any association with an attorney - make sure you are paying the money to the attorney and you are being represented by an attorney. In my opinion there is no such thing as attorney backed. You are either hiring an attorney or you are not. If you are hiring an attorney make sure the attorney has legal mal practice insurance.

In short - if you wish to see good work done on your behalf or someone you know - work with people who take their professions seriously and do things the right way.

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