The Feldman Law Center Adopts All Provisions in SB94

SB 94 was signed into law on October 11th by the Governor of California. The Senate bills intention is to protect homeowners from loan modification scams.  Please be advised that if you or anyone you know is interested in having an attorney represent them in their fight to get a loan modification, under the new law, now in effect, we, as a law firm, are still able to accept new loan modification clients. The Feldman Law Center, which has a long history of successfully helping people avoid foreclosure, is continuing to take loan modification cases under the new bill, SB94. We still have the ability in some cases to postpone trustee sale dates without the need to file for bankruptcy protection.

We were happy to see SB 94 passed.  In addition to other protections, SB 94 makes it illegal for any Attorney, Law Firm or Company including mortgage companies (brokers and realtors) to accept an up-front advance fee for a Loan Modification before providing the contracted for service.  We believe this will result in many of the scam operations that were still in existence to cease operating as their main function was to take homeowners funds, and then do little to nothing for the homeowner. Of course, criminals by definition typically don't follow the laws, so there still may be those who try to collect advance fees, so be careful. The Feldman Law Center has taken all the necessary steps to remain compliant with all new regulations handed down by SB94. Senate Bill 94 was recently signed into law by Gov. Arnold Schwarzenegger on October 11, 2009.

"The loan modification industry has the potential to help millions of homeowners throughout California.  Unfortunately, there are far too many scam artists attempting to take advantage of people who are just trying to keep their house,” said Steve Feldman, Esq., attorney at the Feldman Law Center.  “People still need our help, and we’re going to continue to help them and abide by the rules set forth by SB94."

SB94 is a law, sponsored by Sen. Ron Calderon, which prohibits California loan modification attorneys from asking consumers for payment before they perform services.  It also requires loan modification law firms to inform homeowners that they can do the loan modification on their own, or with the assistance of a government agency – both of which the Feldman Law Center already does.  The ban on "up-front" fees runs until January 1, 2013. Tom Pool, spokesman for the California Department of Real Estate, was quoted as saying "We didn’t want to put a permanent ban on legitimate business during a temporary crisis."

Steve Feldman, Esq., as well as the entire Feldman Law Center staff, support and understand any efforts to protect homeowners.  This bill will also eliminate the broker/attorney relationships which have become a breeding ground for scam artists.

Did you also know?

The delinquency figures reflect the latest troubles of the program, known as Making Home Affordable Program. Just recently Treasury officials announced a campaign to put new pressure on lenders to do more to move struggling homeowners into loans with easier terms. What we have seen so far from most trial mods offered by lenders is a "designed to fail" offer. If not properly negotiated by an attorney and terms adhered to by the home owner, these Trial Mods may end up in foreclosure and these homeowners could still lose their homes. Many homeowners are going to get a rude awakening when they are denied after a Trial Mod period and their lender even if they make their scheduled payments on time.

So far, more than 650,000 borrowers have been enrolled into the initial, or "trial," phase of the program and have seen their payments lowered by an average of $640 a month, or 40 percent. But a recent survey of large mortgage servicers published by the Treasury Department found that that more than 25 percent of borrowers in the program were not current on their trial payments. It is critical that these terms are fair and reasonable to both the lender and the home owner, allowing the loan to perform long term. If the federal government is going to share in the losses, what incentive dose the investor have to perminately modify the loan if there is a chance of default at a later date. Moving homeowners from the trial phase into a permanent modification has become the program's latest stumbling block. Borrowers must make three payments and submit documents proving they qualify for the program to move forward, but a bottleneck has emerged with few homeowners making it through.

Borrower confusion

Some borrowers have reported being confused about the trial modification process, including how their new payment was determined and when they need to begin paying. Also, at the end of the trial period there is confusion as to what to send their lender and when to expect an answer. Most borrowers have no idea if their loan will be perminately modified or a trustee sale date will be set. We strive in all cases where ever possible to negotiate a permanent loan modification for our clients.

The Feldman Law Center handles more than just loan modifications and our attorneys can assist you in exploring all your options, such as bankruptcy assistance and short sale negotiation.  Essentially, if a homeowner is in a difficult financial situation, the Feldman Law Center can provide virtually any legal assistance necessary. We can offer free information, foreclosure help and advice to homeowners that want to keep their home or negotiate a short sale. Please use our short form above or call our office today to receive a free consultation and review all your options.