Effective October 11, 2009 in California, our state legislature will be implementing to the new regulations aimed at shutting down unscrupulous loan modification companies that take people’s money and run, without providing loan modification services. California AB 764 and SB 94 has been signed by the governor. Many cases have been reported of homeowners facing foreclosure and entering into a contract with loan modification companies, with fee paid up front, but the loan mods never go through.
Many of the problems with newbie loan modification companies is their lack of understanding of bank policy regarding the modificiation of the loan. Unfamiliar with the bank policies theses loan mod companies take clients whether they are qualified or not. The end results is homeowners in foreclosure do not get their loan mod, and lose their home to forclosure. This has been the case with many San Diego homeowners facing foreclosur, and turning to late night TV advertisers that claim that they can modifiy your loan if you are in foreclosure.
The new legislature goes into effect October 12, 2009.
