Legal Question in Real Estate Law in California

There has been a law passed recently which forbids taking up-front funds for loan modificatons. I would have to determine whether or not the law was in place at the time of your contract and what if any remedies it provides. This may be small claims matter if punitive damages are not allowed. Contact me directy.

You can get a lot of information about loan-modification scams, and the attempts to stop them and to assist victims, from the California Department or Real Estate's Web site. Try www.dre.ca.gov and see what you can learn there, then consider giving the appropriate DRE office a phone call to complain if appropriate.

File in small claims court at little cost, take your proof and documents, and tell your story to the judge. The court will not look favorably on such a company, which may be in violation of the law.

The law forbidding up-front fees was effective October 12, 2009. I would write them a letter demanding a refund, complaint to the Better Business Bureau and if you didn�t get your refund in a week or less file a small claims action against them before they disappear. You should also contact your local District Attorney as they are on the hunt for people like this.

There are a lot of non profits who do not charge anything to do modifications and there is an non profit outfit called NACA that also claims great success and doesn�t charge any fees except a membership which is around $50.00 a month.

Good luck and hope that helps.

Report this to the police. They may already be investigating this company. If the owners or the persons collecting the money are convicted of fraud you can request reimbursement through the criminal court.