California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

Many Companies Still Breaking California Senate Bill 94

The calendar states that we firmly sit in the middle of February 2013. We thought that 2013 would be the year of the homeowner in terms of consumer protection and assistance. Maybe that is wishful thinking.

Just the other day, we spent about 20 minutes speaking with an elderly couple in San Francisco who wished to remain in their home. They have lived in the house a number of years but had come across hard times recently.

Like many they went in search of a loan modification. Unfortunately, they got involved with a Southern California based firm kindly assists homeowners to obtain a loan modification for a FEE. Why do most of these shady firms seem to be based in So Cal? We did say that it was 2013 so why are homeowners still being victimized by people and companies who continue to break the law?

California Senate Bill 94, which prohibits upfront or advance fees for residential loan modifications and mortgage loan forbearance services, took effect on October 11, 2009.

Still many homeowners continue to pay for loan mod help and be taken advantage of.

Dual Tracking Still Taking Place

To make matters worse, the same couple who paid up front fees for loan modification help were being “dual-tracked” by their servicer (Chase in this case). They clearly had an advancing sale date while they went through the loan medication  modification process. Again, this situation clearly represents breaking state law. The California Homeowner Bill of Rights that came into effect January 1, 2013 prohibits creditors from recording a notice of default or notice of trustee sale when an application for a loan modification or other loss mitigation measure is pending.

The fact is that these illegal actions continue to occur but in this case, we didn’t know who to refer them to. We told the homeowners to contact the loan medication modification company to ask them why they were breaking state law 94. Who would we refer the homeowner to in the case of dual-tracking? Is the Attorney General or any other real estate lawyer going to take on Chase or any other bank in a case such as this?

California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

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2 Comments

Filed under Banks, California, Foreclosure, Loan Modifications, Mortgages, pre-foreclosure, San Francisco

2 responses to “California Homeowners Still Victims Of Dual Tracking And Up Front Loan Mod Fees

  1. Caryn

    Refer them to the California Monitor for the National AG Settlement which also has dual track restrictions. They are very helpful. http://californiamonitor.org/
    [P.S. Note you have “medication” in a couple of places instead of “modification”.]

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