Well, not quite that drastic. Thankfully, Governor Schwarzenegger just signed Senate Bill 94 into law yesterday. The Bill’s measures were to prevent loan modification companies from taking up front fees from homeowners who are in distress in return for modifying the terms of their loan. These companies were charging up to $4,000 for their services.
Now, don’t get me wrong, I’m all for being compensated for your work. I just don’t agree that these companies should take an up front fee from homeowners who are already in distress and can’t make their payments. Why? Because the finance industry is always filled with shady scammers and greedy, blood sucking leeches… it’ll always be that way.
I know for a FACT that there are hundreds of loan-mod companies our there that have charged and taken this fee from the homeowners even though they knew that they wouldn’t qualify for the modification. How do I know this for sure? I know when the mortgage industry crashed, all those scummy Mortgage Broker douche bags that were making hundreds of thousands of dollars per month (yes, I said Hundreds of Thousands of Dollars) went straight into the loan mod business to re-create the same thing.
So, obviously we’re not talking about the “Lending Giants” crashing, but I do believe there will be a wave of short sales and foreclosures to come in the near future from all the defaulting loan-mod homeowners. Imagine that, they paid $4,000 to prolong the inevitable.
I keep reading blogs and articles from attorney’s (Like their the most honest people in the world, right?) and loan mod companies complaining that they can’t provide a service if they can’t get paid for months. If they were at least half-assed sincere or dedicated to their work and not out for the quick, short term buck they’d stop their bitchin’ and whinin’ and get to workin’. At least the Governor saved you by vetoing Assembly Bill 764 which would’ve banned companies from collecting ANY fee if the loan mod didn’t go through successfully.
Obviously I’m not saying their all Von-douchebags… I’m just saying some are, some aren’t, so what. I see my business booming but I’m not taking an up front fee from anyone, and sometimes we don’t get paid for up to 6 months! Try THAT for bitchin’!
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