ON LOAN MODIFICATIONS.

It is not new that a lot of people who are about to lose their homes are being victimized by unscrupulous vultures.

The legislature, Attorney General Edmund G. Brown Jr., the California Department of Real Estate and the State Bar of California have joined forces to combat loan modification and foreclosure fraud.

All foreclosure consultants operating in California must post a $100,000 bond and register with the office of the Attorney General. Attorneys are exempt from registering and posting a bond.

All foreclosure consultants who register will receive a Certificate of Registration.

If you will use a foreclosure consultant, ask to see that certificate.

It is also unlawful for foreclosure consultants to ask for a fee up front. Starting on October 11, 2009, this includes ATTORNEYS. Business and Professions Code Sec. 6106.3.

Foreclosure Consultants can only receive money legally if their work has been fully performed. Civil Code Section 2944.7 and 2945-2945.11.

Furthermore, a foreclosure consultant is required to provide the following statement in no less than 14-point bold type to the prospective client:

”It is not necessary to pay a third party to arrange for a loan modification or other form of forbearance from your mortgage lender or servicer. You may call your lender directly to ask for a change in your loan terms. Nonprofit housing counseling agencies also offer these and other forms of borrower assistance free of charge. A list of nonprofit housing counseling agencies approved by the United States Department of Housing and Urban Development (HUD) is available from your local HUD office or by visiting  www.hud.gov.   Civil Code Section 2944.6.

This applies only to mortgages and deeds of trust secured by residential real property containing four or fewer dwelling units. Civil Code Section 2944.6(e).

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