Monday, October 19, 2009

New law bans advance fees for loan mods

For those of you who are dealing with the financial downturn by obtaining loan modifications, a new law effective October 11 bans the collection of any fee in advance of performing loan modification services.

This is designed to curtail fraud in the marketplace where homeowners were charged hundreds and potentially thousands of dollars to modify loans - something the homeowners could have done themselves. We'll see how well this new law works to prevent fleecing homeowners already struggling.

For more details, please view the article here:
http://www.inman.com/news/2009/10/19/state-bans-advance-fees-loan-mod-help

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