Legal Question in Real Estate Law in California

Home Loan Modification

I contacted a home loan modification representative and if he says that is a go to go through the home loan modification, he'll ask for $3,000 before the process. If a loan modification is not solved then he said the money will be return to me (money-back guarentee). My question is, is it legal for a real estate rep to charge for money from me before the loan modification is done? Or should he charged for his services after the loan modification is done? PLEASE HELP, THANK YOU


Asked on 1/22/09, 4:06 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Home Loan Modification

It's legal for a licensed broker or attorney to charge in advance, not others, but I wouldn't hold my breath about getting a loan mod, or getting back my money. Fair warning.

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Answered on 1/22/09, 4:13 pm
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Home Loan Modification

Be VERY careful when dealing with people claiming to be able to help with loan modifications. There are a great number of scams in which troubled homeowners pay people to act on their behalf only to find out that the loan modification company has done nothing. Further, before you agree to give anyone money, make sure you are offered a contract which specifies exactly what the company is going to do. DO NOT RELY on anyone's verbal commitment to return your money to you. Unless that promise is in writing it probably is not going to happen; and even then it may be dificult at best for you to recover your money.

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Answered on 1/22/09, 4:17 pm


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