Posted by CANotaryPlus on 8/2/11 2:24pm
Msg #392332

Upfront money for mod

Just got a call from Vital Signings for a mod. Instructions said to collect post dated checks made out to a law firm along with other documentation. SC shows Vital as of late at least to pay OK and has a good rating. From my knowledge we cannot collect upfront money according to the law. Can anyone shed more light on this. TIA

Reply by John/CT on 8/2/11 2:43pm
Msg #392336

Re: Upfront money for mod = not a good thing ...

even if it is sugar-coated as "an attorney retainer fee". Legit mods (e.g., BofA) do not require an upfront payment. If it were me, I'd walk away from this ... even in these hard times.

Reply by Shoshana/AZ on 8/2/11 2:46pm
Msg #392337

Illegal in AZ n/m

Reply by Linda_H/FL on 8/2/11 2:49pm
Msg #392339

I'd wager it's illegal in CA too..isn't that why

21st Century Legal Services was raided by the FBI and shut down?

Illegal in FL too..

Reply by Linda_H/FL on 8/2/11 2:49pm
Msg #392341

BTW, it's also a federal violation of the FTC mandate n/m

Reply by Shoshana/AZ on 8/2/11 2:53pm
Msg #392343

Re: I'd wager it's illegal in CA too..isn't that why

I think they were shut down because they were taking money and not providing the service they said they were going to provide.

Reply by Notarysigner on 8/2/11 3:03pm
Msg #392345

Re: I'd wager it's illegal in CA too..isn't that why

It is and it isn't. The key is will the upfront money be refunded if the loan Mod doesn't go through. I was reading the Civil, Penal and Government codes and said, wait a minute, the OP can do that himself.

Reply by Jessica Ward on 8/2/11 2:48pm
Msg #392338

Also illegal in WA I think

our AG put out a warning about upfront mods, and then he proposed legislation after that, that I know passed, but I didn't follow up. I won't take any assignments with upfront cash for a mod or "post dated checks"

Reply by Kendall Challenger on 8/2/11 3:19pm
Msg #392346

Also illegal in MN n/m

Reply by LKT/CA on 8/2/11 4:57pm
Msg #392363

Illegal in California

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

Reply by jnew on 8/2/11 5:03pm
Msg #392364

For me, it is a matter of integrity. These setups take money away from people who don't have it to begin with. They can't make their payments and are desperate and will try anything. I won't take these even if they are legal.

Reply by CANotaryPlus on 8/2/11 5:33pm
Msg #392367

Thanks to everyone for the responses. It didn't feel right to me either so I have already declined the signing. Could have used the business but don't need the liability exposure. I'll take Mods from banks that already have processed the required reduction time but not to "scammers." Business slow here in the North State but gives me time to get some badly needed "HoneyDo's done. LOL

Reply by HrdwrkrVA on 8/2/11 8:44pm
Msg #392390

I totally agre w/ Jnew! This has scamwritten all over it!

Just say no & run/walk real fast in the opposite direction!
Legal or not, it just hurts people who are already hurting, but most ARE duped. If these desperate folks had $3600, they could PAY their mtge! Just a legal loop-hole to fatten greedy atty's pockets! Glad you decided NOT to do it. Good luck on your 'honeydos' - you've inspired me! :-)

Reply by Julie/MI on 8/2/11 6:27pm
Msg #392373

It's illegal in my state. I recently had a lady call me from the one and only upfront mod I did and she told me she got dupped. I asked her to call me if she was approved. She was in tears.

People can do what they want with modifications, and I would think the notary is absolved in any wrong doing, but I just don't want to be involved in this stuff and interestingly enough, I was never called by other companies to do these, I know a lot of you have done many of these.

Reply by NJDiva on 8/2/11 8:37pm
Msg #392383

But the OP didn't say anything about there being...

any money up front, as I read it. He/she said post dated checks. Is that right?

Reply by Linda_H/FL on 8/2/11 8:44pm
Msg #392389

That's up-front money -

signer sends in 4 post-dated checks to the tune, sometimes of $2k-$3k-$4k...

Reply by Linda_H/FL on 8/2/11 8:45pm
Msg #392391

Sorry...should have finished...

According to the FTC, no funds are to be paid until the services are completed. So, no money due til modification is complete or debt is resolved.

Reply by 101livescan on 8/3/11 7:55am
Msg #392444

Run like the devil. Governor Brown as AG prosecuted many law firms for this practice. IT IS ILLEGAL, you don't want to be part of it. They scalp the borrower of their money and do not deliver! as they promise. IT'S FRAUD.