Loan Modification Under California Law
1. Upside Down Analysis
2. Qualified Written Request and offer of Loan Modification
3. Letter informing lender of clients election to pursue remedies carved out by recent California Law and or Federal Programs
4. Letter Disputing debt (if advisable)
5. Cease and Desist letters (if advisable)
6. Follow up, contact with Negotiator, and Negotiation by an attorney
By now many of you have read about all the Federal Governments Loan Modification Programs. Others have been cold called by a former loan broker offering to help you with your Loan Modification.
Before you spend thousands of dollars with someone do an investigation:
1. Is the person licensed by the California Department of Real Estate?
2. Are they aware that they should be licensed?
3. Are they asking you for money up front? Are they aware they might be violating the California Foreclosure Consultant act. (especially if you have NOD filed against your residence)
4. If they are asking for money up front - If they are they are breaking the law, unless they have been give a no action letter by the Department of Real Estate. Has their retainer agreement been give a no opinon letter by the DRE. (As of November 2008 - only 14 non attorney entites have been - granted this no opinion letter - so unlesss they give you a link to the DRE website which has their name on it - it is a violation of Department of Real Estate regulations for them to take money up front.
5. Unless, you are dealing with a licensed California Real Estate attorney. If somone says they are attorney backed - ask to speak with the attorney. What does attorney backed mean?
6. Find out how your loan modification people intend to gain leverage of the lender.
7. If you are offered a loan audit or a Qualfied Written Request under RESPA letter - will an attorney be doing the negotiations for you.
8. Will it do you any good to have a loan audit done if you later have to go out and retain an attorney. You want to retain their services of an attorney before you pay for the audit.
9. What kind of results should you expect?
10. Who will be doing your negotiating?
11. Will the Loan Modification request go out on Legal Letterhead?
12. How much will you have to pay?
13. What if your are not satisfied with the loan modification offered by the lender?
14. Should you go into default on both loans prior to requesting a loan modification?
15. Will an attorney review the terms of your loan modification with you? Will you have to waive your anti-deficiency protections if you sign your loan modification paperwork? Will an attorney help you leverage recent changes in California law in an attempt to get a substantial reduction in the principle?
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Last Updated ( Saturday, 20 December 2008 )
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