For months I have been harping that loan modification companies are, by and large, scams. For months I have been telling you that, if a "loan modification specialist" request fees up front, you should RUN THE OTHER WAY!
Now California has turned my rants into law. Effective October 11, 2009 through January 1, 2013, it is now illegal for anyone - real estate brokers, attorneys, so-called "short-sale specialists," anyone - from receiving any fees for negotiating or arranging a loan modification until AFTER that person fully performs each and every service as promised. Up-front fees are now illegal in California!
This new law also requires that the borrower receive a special notice telling the borrower that it is unnecessary to pay someone to help you modify your loan. Get it? Even the state is telling you that you do not need these scammers to "help" you. Plain and simple, you are better off without them.
So now, not only have you been warned against these slime buckets, one state has made their scams illegal. Wanna bet there are still those of you still who will email me asking if they should hire a "loan modification specialist?"
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