7/20/2012 11:26 AM (PST)
Rosemary, be very careful with this. First of all, it's impossible for any business to promise you a modification--only your lender can do this. Also, it's illegal for any company to charge any money in advance of actually completing the modification or foreclosure rescue service.
From the sound of things, it may be to your advantage to file Chapter 13 bankruptcy. This will stop the foreclosure process and may allow you to work out terms with both the bank and your other creditors. Most likely the reason you're getting nowhere with the bank on the modification is because you owe so little on the property. Modifications are usually only done in situations where you owe more on the property than it's worth.
Consider calling Consumer Credit Counseling Service, a not for profit organization that too may be able to assist you.
8/2/2012 5:37 PM (PST)
Per the new Federal guideline named FTC MARS Regulation 16, an Attorney CAN take fees upfront and must hold them in a TRUST account. I am not sure when the regulation defines those fees as "earned" where the Attorney can move the funds to a "main" or "business" account to compensate himself. Nor am I aware if he must refund the monies upon the decline of your modification unless it is specifically written into the contract you WILL have to sign. Nor am I sure there are any stipulations the Attorney must refund any monies at the time of decline. I am the law allows the Attorney to offset his incurred costs and fees against the balance paid and bill further for any additional costs not covered by your initial payment. As for me, a Real Estate and loan professional, I work on a contingency - meaning I can NOT take any funds upfront from distressed home owners at all. I must "perform" first - which means your case has to be submitted and evaluated by your lender as well as approved for a Trial Plan or better in order to receive any compensation that was agreed to. At Trabuco Canyon Realty Specialists we ALWAYS pre-qualify our clients based specifically on the guidelines for HAMP and The DOJ Modification. And we do not take cases which are unqualified for assistance such as modification, deed-in-lieu, short-sale or some other option. We will tell you the best options even if that means we do not receive compensation because it is the right thing to do in these economic times. And we do all of this FREE OF CHARGE to you. ============= Trabuco Canyon Realty Specialists, Dinece Carmichael (Broker/Owner), Office: 323-549-3409