- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (17)
- Robert Walker, "So Cal Agent"
- Contributions:1425
The more restrictive law wins, and California Law is the more restrictive law.
"...the more comprehensive advance fee ban applicable to lawyers with respect to loan modifications and other forms of home loan forbearance under Senate Bill 94 is still in effect..."
Notice the "Senate Bill 94 is Still in Effect" at the end...
You can call the Enforcement unit for the DRE out of Los Angeles and I am sure they would be happy to clairify it for you.
As for working for free, I do it all the time until I finish the job. It is the risk you take and it rewards those who complete the job.
"...the more comprehensive advance fee ban applicable to lawyers with respect to loan modifications and other forms of home loan forbearance under Senate Bill 94 is still in effect..."
Notice the "Senate Bill 94 is Still in Effect" at the end...
You can call the Enforcement unit for the DRE out of Los Angeles and I am sure they would be happy to clairify it for you.
As for working for free, I do it all the time until I finish the job. It is the risk you take and it rewards those who complete the job.
- JoAnna Jensen, "realestateadvocate"
- Contributions:78
Hi Robert,
The FTC Mars ruling dated November 19,2010 is an answer to SB 94. If you look into what happened after SB 94, home owners would try to hire attorneys but attorneys would not do the work.
Several very educated attorneys who specialize in foreclosure prevention got the Attorney Exclusion adopted. Otherwise foreclosures would continue like crazy and no one would defend what the lenders are doing!!
There is a difference between advance fees and a retainer. A retainer allows an attorney to take a fee for work to be completed, this fee is to be placed in a trust account for the client be charged against.
Once we perform the work we can charge the client their fee.
Otherwise I do not see any profession who will work for free, stop foreclosure sales for free and modify home loans for free!
I
The Mortgage Assistance Relief Service ruling per the FTC makes is very clear that only practicing attorneys have the exception to charge the retainer and it is not an advance fee two different things.
The FTC Mars ruling dated November 19,2010 is an answer to SB 94. If you look into what happened after SB 94, home owners would try to hire attorneys but attorneys would not do the work.
Several very educated attorneys who specialize in foreclosure prevention got the Attorney Exclusion adopted. Otherwise foreclosures would continue like crazy and no one would defend what the lenders are doing!!
There is a difference between advance fees and a retainer. A retainer allows an attorney to take a fee for work to be completed, this fee is to be placed in a trust account for the client be charged against.
Once we perform the work we can charge the client their fee.
Otherwise I do not see any profession who will work for free, stop foreclosure sales for free and modify home loans for free!
I
The Mortgage Assistance Relief Service ruling per the FTC makes is very clear that only practicing attorneys have the exception to charge the retainer and it is not an advance fee two different things.
- Robert Walker, "So Cal Agent"
- Contributions:1425
You may also want to refer to the following:
Ref. http://www.dre.ca.gov/pdf_docs/ca/ConsumerAlert_NewFederalRule.pdf, Page 2
"...It is important to note that the carve out for lawyers discussed above only applies to the FTC rule.
In California, since the passage of Senate Bill 94, which became effective on October 11, 2009,State law has prohibited any person, including real estate licensees and attorneys, from demanding, claiming, charging, collecting or receiving an upfront fee from a borrower in connection with a promise to modify the borrower's residential loan or to do some other form of mortgage loan forbearance. The California Department of Real Estate has information about Senate Bill 94 and its broad advance fee ban, and that information can be accessed at:http://dre.ca.gov/cons_adv_fees_alert.html.
Thus,the more comprehensive advance fee ban applicable to lawyers with respect to loan modifications and other forms of home loan forbearance under Senate Bill 94 is still in effect, and the FTC rule's limited attorney exception does not provide a safe harbor under California law..."
And as you noted JoAnna, "Attorneys can charge a retainer but no advance fees," would be correct, but then what is the interpitation of a retainer to the DRE?...
Good luck out there, be safe and informed
- Robert Walker, "So Cal Agent"
- Contributions:1425
Thanks for the reply JoAnna, but you may want to check into advanced fees per the DRE which writes:
"...It is important to note that the exemption for lawyers discussed above does not allow lawyers to collect money upfront for loan modifications or loan forbearance services, which advance fees are banned by the more restrictive California Senate Bill 94..." Ref. http://dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigation.pdf, Page 2, Line 24
Anyone attempting to do loan modification should get clarification before pursuing any form of advanced fees.
- JoAnna Jensen, "realestateadvocate"
- Contributions:78
Hi Robert,
the information about fees for loan mods is no longer accurate.
Per the MARS ruling on FTC practicing attorneys have an exception and can now charge a retainer for our work.
The attorney has to be practicing law and in the same state as the homeowners home.
Which is actually a good thing.
While some very excellent attorneys were turning clients away and leaving home owners no legal option to fight a foreclosure.
Attorneys can charge a retainer but no advance fees. They can take the money from the clients trust account as they perform the work.
This way every one wins. Attorneys who know the law and do a great job at foreclosure prevention should not be grouped with other
professionals who scam homeowners.
As long as the attorney can at any time pull out the clients file and have all documented work they have performed for the client and has stopped the sale date and are in negotiations with the lender I feel they are doing their job and deserve to get paid.
Doing a loan modification is a lot of work, it is more than putting together the application and submitting it. I believe it should be done by an attorney who knows specific laws about FDCPA, Tila, Respa and Dodd frank.
Exactly for the reason you stated above, if an attoney sends a demand to the lender and asks for the note and deed of trust it is the attorney who will find out if the note has been perfected and deposited the way it should be. A homeowner or realtor alone will not be able to negotiate with the lender to that degree. typically the lender will not respond unless you press them and you know what your talking about.
the information about fees for loan mods is no longer accurate.
Per the MARS ruling on FTC practicing attorneys have an exception and can now charge a retainer for our work.
The attorney has to be practicing law and in the same state as the homeowners home.
Which is actually a good thing.
While some very excellent attorneys were turning clients away and leaving home owners no legal option to fight a foreclosure.
Attorneys can charge a retainer but no advance fees. They can take the money from the clients trust account as they perform the work.
This way every one wins. Attorneys who know the law and do a great job at foreclosure prevention should not be grouped with other
professionals who scam homeowners.
As long as the attorney can at any time pull out the clients file and have all documented work they have performed for the client and has stopped the sale date and are in negotiations with the lender I feel they are doing their job and deserve to get paid.
Doing a loan modification is a lot of work, it is more than putting together the application and submitting it. I believe it should be done by an attorney who knows specific laws about FDCPA, Tila, Respa and Dodd frank.
Exactly for the reason you stated above, if an attoney sends a demand to the lender and asks for the note and deed of trust it is the attorney who will find out if the note has been perfected and deposited the way it should be. A homeowner or realtor alone will not be able to negotiate with the lender to that degree. typically the lender will not respond unless you press them and you know what your talking about.
- Robert Walker, "So Cal Agent"
- Contributions:1425
Hello Malbarr...
Sorry to hear of your situation and it is unfortunate that it isn't an unusal description.
Please log onto http://www.calhfa.ca.gov/ and read some of the tabs and see if any of them may be able to assist you.
You may be able to grab their attention by simply asking if they even hold title to your home and if that is why they won't give you the requested information. There are many homes that were wrongfully foreclosed on because the foreclosing servicer did not hold title at the time of the foreclosure. Scary stuff, but it does happen.
You may also want to click on the Hardship link at http://www.calhfa.ca.gov/myaccount/hardship.htm
Notice this is a governmental link and not someone offering to cure all your problems in which they are going to gain at your lost, and remember "ANY" advance fees are illegal to anyone... The FTC has made the ruling National. Read it directly from the FTC's website at: http://www.ftc.gov/opa/2010/11/mars.shtm and in addition you may want to read an article from the DRE at http://dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigation.pdf
I hope it all works out for you.
Sorry to hear of your situation and it is unfortunate that it isn't an unusal description.
Please log onto http://www.calhfa.ca.gov/ and read some of the tabs and see if any of them may be able to assist you.
You may be able to grab their attention by simply asking if they even hold title to your home and if that is why they won't give you the requested information. There are many homes that were wrongfully foreclosed on because the foreclosing servicer did not hold title at the time of the foreclosure. Scary stuff, but it does happen.
You may also want to click on the Hardship link at http://www.calhfa.ca.gov/myaccount/hardship.htm
Notice this is a governmental link and not someone offering to cure all your problems in which they are going to gain at your lost, and remember "ANY" advance fees are illegal to anyone... The FTC has made the ruling National. Read it directly from the FTC's website at: http://www.ftc.gov/opa/2010/11/mars.shtm and in addition you may want to read an article from the DRE at http://dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigation.pdf
It is very unfortunate, but very true that, since you wrote your plea above that the unscrupulous will now come out of the wood works to prey on your unfortunate situation.
Please becareful on who you accept assistance from and consider the links I have provided to you.
I hope it all works out for you.
- JoAnna Jensen, "realestateadvocate"
- Contributions:78
Hi Melbarr,
I will let you know the guidelines for a HAMP mod.
1) Your first loan needs to below $729,950
2) your first mortgage payment, fully amortized needs to be Greater than 31% of your gross income. Only those who are on the loan need to be considered.
3) Your first loan needed to be originated on or before 1/1/09
4) this needs to be your principal residence
this is for hamp. typically lenders will have an alternative program if you dont qualify for HAMP and they will generally have the same guidelines.
Here is where it may be beneficial for you to have an attorney who specializes in loan modifications and has gotten them approved.
If the above are all positive then you may want to do the following:
Not legal Advice
Per Respa, Tila and dodd Frank any home owner is allowed to ask for their current owner of their note and deed of trust. You have to do in a letter. the lender has to respond within a specific time line.
Are you current on your loan. typically if your current they will look at your savings, if you have more than 3 months worth of savings that can pay for your fully amortized mortgage payment you most likely will get denied.
it will be very beneficial to know the net present value of your home. guidelines say if you are positive for the npv, and all above items are positive for the qualificiations you should get a mod.
I will let you know the guidelines for a HAMP mod.
1) Your first loan needs to below $729,950
2) your first mortgage payment, fully amortized needs to be Greater than 31% of your gross income. Only those who are on the loan need to be considered.
3) Your first loan needed to be originated on or before 1/1/09
4) this needs to be your principal residence
this is for hamp. typically lenders will have an alternative program if you dont qualify for HAMP and they will generally have the same guidelines.
Here is where it may be beneficial for you to have an attorney who specializes in loan modifications and has gotten them approved.
If the above are all positive then you may want to do the following:
Not legal Advice
Per Respa, Tila and dodd Frank any home owner is allowed to ask for their current owner of their note and deed of trust. You have to do in a letter. the lender has to respond within a specific time line.
Are you current on your loan. typically if your current they will look at your savings, if you have more than 3 months worth of savings that can pay for your fully amortized mortgage payment you most likely will get denied.
it will be very beneficial to know the net present value of your home. guidelines say if you are positive for the npv, and all above items are positive for the qualificiations you should get a mod.
- Daniel1950
- Contributions:37
What bank are you dealing with
The big banks are helping no one but them self's
The big banks are helping no one but them self's
- Chris Hacker, "thelendingcoach"
- Contributions:130
How about a FHA Streamline without appraisal?
If you are not behind on payments and your score is 620 and up then you qualify without an appraisal or income verification.
If I have missed something and you can't do the streamline for some reason than I would look at a short sale. There is no shame in getting a smaller housing payment and having more money each month. That's a good amount of negative equity to overcome.
Also, more than likely the appraiser didn't "overappraise" the market was just "overvalued".
Good luck
If you are not behind on payments and your score is 620 and up then you qualify without an appraisal or income verification.
If I have missed something and you can't do the streamline for some reason than I would look at a short sale. There is no shame in getting a smaller housing payment and having more money each month. That's a good amount of negative equity to overcome.
Also, more than likely the appraiser didn't "overappraise" the market was just "overvalued".
Good luck
- Cheryl Garner, "Cheryl Garner"
- Contributions:3
I would contact naca.com (Neighborhood Assistance Corporation of America) to see if they can help you. NACA is a government assistance program that I "hear" are the only people out there that can get you help with a loan modification.
It sounds like you've had a lot going on in your life. I wish you a lot of luck. Keep me posted.
Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
It sounds like you've had a lot going on in your life. I wish you a lot of luck. Keep me posted.
Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
- wetdawgs
- Contributions:26833
It sounds like time for a short sale or foreclosure if you can't afford your home on 31% of your gross income. So sorry
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Melbarr,
Your negative equity exceeds 125%. That excludes you from the distressed property loans that are available. You may want to speak to an attorney if you are also considering a short sale or foreclosure.
Best wishes, Rudi
Your negative equity exceeds 125%. That excludes you from the distressed property loans that are available. You may want to speak to an attorney if you are also considering a short sale or foreclosure.
Best wishes, Rudi
- MELBARR
- Contributions:2
HI ALL, My loan balance is $199,000. I have had it e-appraised and spoke to the person that over appraised it in 2007 and it now appraises for between $108,000.00 and $118,000.00. I have a fha loan and the interest rate is 6.5%. I am not behind in my payments. Alot has went on in the last 3 years with my bank. Alot of promises and nothing to show for it.And wetdawgs the 31% means nothing when its your gross income. I don't pay my bills with my gross income. If I did I wouldn't be having this problem.And I'm lucky if I have $150.00 left after I make my mortgage.All I asked them was to make my payment lower so I could afford to live here and put money back into my home.I have been fighting with them for 3 years and they just keep giving me the runaround. thanks for all you advice.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
What is your loan balance? What do you think your home is worth. What type of loan do you have? What is the interest rate? Are you currently behind in your payments?
Happy funding, Rudi
Happy funding, Rudi
- Marlene Burkhart, "Marlene.Burkhart"
- Contributions:1
Have you tried going to a certified HUD counselor in your area? It is free, and impartial.
- wetdawgs
- Contributions:26833
What is your target here? If your payment is 31% of gross income, you are doing quite well compared to so many.
- Joseph Branton, "Homeloans4u"
- Contributions:6
Get away from your bank and call a local Mortgage Broker.
Your bank has no interest in helping you because doing so cuts into their profits.
This has nothing to do with their investors. Home affordable is a government sponsored program.
Find a local Mortgage Broker who has lots of options and deals with several national lenders and he will find you a solution.
The answer is out there go look for it.
Good luck.
Joseph
Your bank has no interest in helping you because doing so cuts into their profits.
This has nothing to do with their investors. Home affordable is a government sponsored program.
Find a local Mortgage Broker who has lots of options and deals with several national lenders and he will find you a solution.
The answer is out there go look for it.
Good luck.
Joseph
NEED HELP SAVING MY HOME....
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.