New Loan Modification Law May Shut Down Many Sacramento Loan Mod Shops
October 28th, 2009 Categories: Foreclosure Rescue Scams, Loan Modification, Mortgage and Loans, Sacramento Real Estate
Effective immediately, SB 94, which became effective Oct. 11, will ensure anyone selling loan modification services will take money only after they do what they have promised. Also they must advise potential customers that they can actually negotiate a modification with their lender on their own or obtain help free of charge from nonprofit counseling agencies that are pre-approved by the Department of Housing and Urban Development.
The law includes penalties up to $10,000 and up to a year in jail for violation of the law for an individual and a fine of up to $50,000 for a corporation.
Consumer advocates called the law “a step in the right direction,” but say more needs to be done to make loan modifications easier to accomplish in order to reduce the frustration that leads homeowners to hire the unscrupulous.
No Telling exactly how Sacramento areaq Modification shops are dealing with the law… It’s too early to tell.
