California Rates

California Loan Modification Protection

Seeing a rise in fraud focused on taking advantage of people in the current economic crisis, the California Legislature has began taking action to make sure people seeking a California loan modification receive some protection. A series of new laws have been proposed all aimed at providing protection against fraud. Though these are all steps in the right direction, many consumer advocates say that protecting yourself against fraud depends on you taking necessary precautions.

First and foremost ' know who you are talking to. Understand who the company is, who their principals are, where they are located and so forth. If you are on a website with little or no contact information, consider that a red flag. If you are unable to determine where the company is located consider that a red flag. There are countless websites popping up focusing on California loan modification help.

Make sure the company is based in California. Make sure you can call them and ask questions. Make sure they are licensed to do business in California. Many homeowners are going directly to attorneys and law firms to handle their loan modification. The extra level of protection received since attorneys are licensed by the State and are bound by the rules of the Bar Association gives these homeowners peace of mind. If you are using a law office, make sure that the fees they request upfront are going into an attorney escrow account.

The new laws proposed (and likely to have passed by the time you are reading this article) specifically require upfront payments to go into an escrow account rather than fees being charged upfront. Ask the law office if there is a cap on the legal fees meaning your total legal bill for the loan modification will not exceed a specific amount. The more questions you ask upfront the better job you are doing at protecting yourself. Though there are agencies and laws looking out for you, no one will look out for you to the same degree you will look out for yourself. Ask questions before you choose who will help you with your California loan modification.

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