California Attorney General Jerry Brown unveiled a new website aimed at ending abusive practices in the loan mod industry
Overall this is a good thing, I think consumers should make sure that they are dealing with a licensed person/company when attempting a loan modification. If things don't work out their should be an accountable individual or entity to deal with for the consumer. Getting a signed advanced fee agreement is a must. I'm still not completely convinced that homeowners get the best modifications when representing themselves though...
Also debatable is whether certain homeowners will ever face reality. The homeowner that choose the 1% option arm over the 5.75% 30 year fixed against the advice of more conservative voices because they wanted the instant gratification of a lower payment and then paid $3500 to a fly by night company run by unlicensed ex-sub-prime industry employees has to face their day of reckoning at some point... Maybe not though, maybe the state will pass yet another foreclosure moratorium.
Posted by Ben Nicolas on