Legal Question in Real Estate Law in California

Re: modification mortgage

I am guessing that you mean she has hired a private company to attempt to get her lender to change some terms of the mortgage. They would be allowed to require any terms as long as they are not illegal. I doubt they would guarantee that they will be successful. Find out from the company exactly what the terms are and why you need them instead of doing it yourself. Look at other companies that do modifications and select the best for your circumstances.

Re: modification mortgage

I'm going to disagree slightly with attorneys Shers and Whipple - I seem to recall reading an article about mortgage modification, and essentially the point of the article was that payment upfront was not allowable because of the Mortgage Foreclosure Consultant's Act (Civil Code Sec. 2945 eq seq.). Read that part of the civil code before you enter into an agreement with anyone.

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Re: modification mortgage

I agree with Mr. Shers. This is like hiring a plumber to fix a leak or a mechanic to repair you car. After four hours of work, suppose they say, "Sorry, lady, I can't fix it." Do you still have to pay them for four hours? Sure, unless they guaranteed success. Is it legal? Yes.

So, I guess the answer is "Read your contract before you sign." Also, ask the person you're doing business with. Have them point out where it says that in the written contract. If the written contract doesn't call for a refund, you probably won't get any.