EFFECTIVE DATE: October 11th, 2009
SIGNED: October 11th, 2009
Senate Bill 94 prohibits any person — including a real estate licensee or California attorney — from offering or negotiating “foreclosure rescue” or “loan modification” services where an advance fee is charged before performing all services provided in the contract. The law also requires written notification be included in the contract to inform homeowners that the services of these intermediaries are not required.
California Notaries and Signing Agents have been asked to accept assignments from foreclosure rescue and loan modification companies seeking to intervene between a homeowner and lender by providing services to renegotiate a mortgage or to postpone or preclude foreclosure. Because the new law prohibits the collection of any type of advance fee by a foreclosure rescue company, California Notaries and Signing Agents should not agree to perform an assignment that asks the Notary or Signing Agent to obtain a check for advance fees.
Foreclosure rescue companies are also prohibited from taking a power of attorney from a client.
View the text of the law, details about the changes and an NNA analysis here here
SUMMARY: If you are asked by anyone to pre-pay for services regarding the renegotiation of your mortgage, don’t. It is now illegal in the State of California to require such a payment.