Posted by NJW/FL on 3/22/09 6:00pm
Msg #281703

loan modification apps

In regards to these, please check with your state's attorney general on whether it is legal to pay upfront fees for loan modifications. I just received news from a signing service owner that she contacted the attorney general and was told this is not allowed in Florida. They are actively investigating the companies offering this service.

Reply by Shoshana Roller on 3/22/09 6:10pm
Msg #281706

Just curious as to why that would be illegal.

Reply by ReneeK_MI on 3/22/09 6:17pm
Msg #281708

I don't believe it is illegal IF you are actually hiring legal counsel. I did do some heavy research - didn't change my mind about refusing to involve myself, but that's MY choice to make regardless.

Reply by davidK/CA on 3/22/09 7:18pm
Msg #281711

Advance fees in CA

From the CA Department of Real Estate website:

If you are behind in your mortgage payments, you may be contacted by individuals or companies that will offer to help you work out a loan modification with your lender or provide other services to you in order to help you prevent a foreclosure on your home.

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 a real estate licensee, or to any person or entity. California licensed lawyers when rendering services in the course of their legal practice(s) are exempt from this prohibition. There are non-profit agencies that can assist you without charging you a fee and real estate licensees who can represent you for a fee to be paid after they have completed their work.

Source: http://www.dre.ca.gov/mlb_adv_fees.html

Reply by Linda_H/FL on 3/22/09 7:59pm
Msg #281713

Here's the Florida statute I found - effective 10/1/2008

Florida Statutes 501.1377, which took effect on October 1, 2008, protects homeowners who are in foreclosure or nearing foreclosure from companies offering potentially fraudulent foreclosure "rescue" services. Specifically, the statute governs companies providing foreclosure-related rescue services including loan modification and short sale services. These companies are prohibited from charging homeowners an up-front fee for these services and must provide homeowners with a written agreement.

Reply by Linda_H/FL on 3/22/09 8:07pm
Msg #281714

I should add here - I found this by googling

"FL AG investigating loan modifications" - this part I printed comes from an article where the FL AG is suing an Orlando company - there are several links to follow...

Reply by A-1 Signing Agents, LLC on 3/22/09 10:23pm
Msg #281722

Message Deleted

This message has been deleted by a forum moderator.

Reason: Author Request - Special Exception

Reply by MW/VA on 3/23/09 7:47am
Msg #281739

Re: This is what I recieved today. Probably the same as everyone

There have been several threads on this company. I've chosen not to work for them, whether it is legal in my state or not. Hopefully, the real loan mods that are supposed to be part of the bailout will start rolling soon. There are too many desperate people out there, and then the predators show up.

Reply by A-1 Signing Agents, LLC on 3/24/09 9:08am
Msg #281944

Re: This is what I recieved today. Probably the same as everyone

Just a side note here. This is a cut and paste from an SS warning other notaries NOT to take payment at the table.

Reply by MikeC/NY on 3/22/09 10:31pm
Msg #281724

It's illegal in NY as well. That doesn't stop them from trying, of course; enforcement is tough, since it's always after the fact. We do have a bulldog for an AG, as long as the issue is high profile and news-worthy... So far, it has not been a major issue here.

A general rule of thumb would be that if there are a bunch of states that have enacted laws against a certain practice, you would probably be better off avoiding it even if it's still legal in your state...

Reply by doglover/CA on 3/22/09 10:43pm
Msg #281725

I have done notarizations for loan modifications from GMAC and the borrower sends money after the papers are signed. As the notary, I am instructed not to collect any money at the signing.