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Posts Tagged ‘Fraud’

News Alert – On 11 October 2009 Governor Schwarzenegger signed into law Senate Bill 94, was with immediate effect upon his signature. This law prohibits all persons now, including real estate licensees and lawyers from demanding or collecting an advance payment of fees for any consumer loan modification or forbearance affecting services residential mortgages with 1-4 apartments. Advance fees accidentally after 11 October 2009 must be repaid collected. Agreements before 11 October 2009 are not affected and the rules continue to apply even down to the previous agreements. If you have already entered into an agreement with a licensed broker for real estate mortgage loan modification or forbearance other services before 11 October 2009 and had a broker “no objection” letter received from the California Department of Real Estate, they are allowed to continue providing these services to you under the terms of the contract. You are not allowed to raise a further advance fees from you. The California Department of Real Estate’s web site states: “If you require any person to the front approached to pay fees for these services, do not.”

 

Today, when you look, there are spots, posters and signs on the roadside of entities offering help to prevent a foreclosure from home. Known as foreclosure consultants, some, if not many of these services and the people they can employ a violation of the strict regulations in California, acting to regulate this growing industry. Others are, perhaps downright fraud and fraudsters.

 

The focus of this foreclosure consultant is who behind on their mortgage payments, which now cover an estimated one in ten homeowners. But those who have for the public to its focus mainly on older people try to cheat, the new unemployed and their properties enter into foreclosure and those whose payments have recently moved to the top.

 

If the victim is somewhere in southern California real estate fraud or the target of an unscrupulous loan modification service, foreclosure consultant or anyone on your behalf have been made to change your mortgage or to cure your problems, which is discussed in breach of the strict rules in this article, the law firm Gibson R. Sebastian call at one of the points on our Web site at http://www. SebastianGibsonLaw. com.

 

If you are a licensed real estate broker or agent and either were wrongly accused in violation of the laws and regulations, the loan modification services and foreclosure consultants, or acted as such without knowledge of these strict rules and have legal defense, which we call on, one can call us on the numbers you see on our website.

 

To help you through the rules in California to wade to such services, here are some of the most important provisions. Remember that there are some overlaps between foreclosure consultants and loan modification services. For this reason, the laws and regulations that both services are included.

 

California Civil Code Section 2945 regulates foreclosure consultants. There is an additional requirement in terms of loan modification services, as discussed below. As with many code sections, the restrictions are complex and varied. But here are the main ways in which foreclosure consultants and loan modification services are regulated.

 

First, it is not a foreclosure consultant and any real estate licensee shall not be charged for services in advance as a consultant to gather once a foreclosure notice of default has been registered against your property. California lawyers are exempt from the ban.

 

Second, even if a notice of default has not been recorded against your property in order for a real estate broker to you in obtaining a loan modification or otherwise negotiate, support a possible solution to the problem, the broker must have you sign a agreement that specifically states what services will be performed if they are running and how much to pay you.

 

Third, do not sign an agent, you such a loan modification agreement until the Department of Real Estate has been submitted for review and the broker has obtained the permission of the DRE to use it and collect a deposit collected.

 

Fourth, are licensed real estate broker, the loan modification provide without charging any fees in advance not obligated DRE given permission, so long as their services are completed before they are paid for by you.

 

Fifth, foreclosure consultant contract must allow the homeowner the right to terminate the contract until midnight of the third business day notice, as defined in Section 1689th 5 of the California Civil Code.

 

Sixth, states have foreclosure consulting contracts, an additional notice to homeowners in 14-point bold type, if charges can be made and notification to the homeowner that the consultant does not ask you to give all the characters lien, trust deed or deed.

 

Seventh, it is collecting for a breach of the foreclosure consultant claims, demands, costs, or has been carried out only after the compensation consultant each service, the consultant commissioned or represented he or she would perform.

 

Eighth, it is a violation of the foreclosure consultant a fee or interest which exceeds ten percent per year, the amount of loans which may make the foreclosure consultant to the owner free of charge.

 

Ninth, it is also a violation of the foreclosure consultant for any wage assignment, take into account third party acquire any interest in the residence in question, any authority to induce the owners of other contracts that are not consistent or sign an agreement to help the owner, excess funds before to 65 days after received the trustee sale was carried out in force.

 

Tenth, can be brought an action against a foreclosure consultant for all these violations and judgments, the actual damages, reasonable attorneys’ fees and costs, equitable relief and exemplary damages of at least three times the foreclosure consultant’s fees have been received. The foreclosure consultant can be punished by a fine of up to $ 25,000. 00 or imprisonment up to one year or for each violation.

 

The reason for these regimes are diverse. Foreclosure consultants have been found in many cases, to charge high fees, the payment request to be secured by a deed of trust on the residence, and then either have no service or services rendered worthless. Some advisers foreclosure then known, to acquire the property for a fraction of its value just before the homeowner loses their home.

 

In addition, some foreclosure consultants payment of excessive charges are required for services such as the remaining funds from a foreclosure sale if the homeowner could the remaining funds from the trustee a trustee sale purchased directly, and getting a minimal cost if the homeowner had enough time to notices from the trustee in respect received, how and where applications to make a surplus income under Civil Code § 2924j.

 

The services provided are foreclosure consultants to offer known, legitimate or not, stop or postpone foreclosure receive deferrals from beneficiaries, and mortgage support, in ever receive an extension of time received waivers of acceleration clauses, support for the procurement of Loans and Advances, to prevent or mitigate the effect of the owner credit, savings, home to foreclosure and assistance in obtaining the remaining proceeds from the foreclosure of residence. If a foreclosure consultant promises one of these services, he or she is bound by Civil Code § 2945 discussed.

 

If you use a loan modification service, even one with a contract that the DRE has been submitted and the agent has permission to use it and collect an advance fee if the estate does not follow the strict procedures for handling received treatment in the advance fee California Business & Professions Code Section 10 146 contain, the agent will probably have been violated sections 506 and 506a of the Criminal Code and the homeowner can treble damages to recover any amounts erroneously applied and also applies to reasonable attorneys’ fees claim to any action to recover these amounts .

 

Representatives of the foreclosure sale property consultants licensee must be bound. Foreclosure consultants also have bonded and registered with the California Department of Justice shall (and advertising and promotional material) and the homeowner must be provided with written evidence that the representatives of the contractor with a valid California real estate sales has license and is in an amount tied in to at least double the market value of the property question. If the foreclosure consultant performs all activities, the bargaining position of loans or the provision of services relating to real estate loans included, then the consultant has also become a real estate licensee.

 

While real estate agents are included in many respects compatible and the foreclosure consultant rules in § 2945 BGB, they are subject to rules under certain circumstances, and it is under these circumstances that a broker may be a violation of the law. If they charge fees if a Notice of Default is recorded, if they advance fees before actions have been conducted to collect if they acquire an interest in a residence in foreclosure when the owner in obtaining the remaining proceeds to support the foreclosure sale, or if they make a direct loan for a residence in foreclosure, they may, in violation of the foreclosure consultant laws.

 

A real estate agent may not collect an advance payment shall be in accordance with California Business and Professions Code § 10 026, if the broker has the California Department of Real Estate, an advance fee agreement submitted for approval.

 

A loan modification contract, even one with a licensed real estate agents, for their assistance in preparing to negotiate a loan modification or other resolution of the problem has yet to specify which services are provided, if it is performed and how much you have to pay. If the fees are collected in advance, then the contract approved in advance by the Department of Real Estate.

 

In the law firm Gibson Sebastian, we are specialized in the field of real estate and are standing by to help you if you are victim of any type of real estate fraud have been. If you have lost money or your house to foreclosure consultant or loan modification service as a result of their misconduct, we can in the pursuit of the parties, and to help in some cases, the victims, we are able to not only seek all funds disbursed to them, but also in some cases, your other actual damages, equitable relief awarded reasonable attorneys’ fees and costs and punitive damages of three times compensatory damages or misapplied by the foreclosure consultant or loan modification service, the contract with you.

 

If you are a business or real estate legal matter in Palm Springs or Palm Desert, Ontario and Rancho Cucamonga, Temecula or Murrieta, Newport Beach or Huntington Beach, Anaheim and Santa Ana, El Cajon and Carlsbad, Palmdale and Victorville, Long Beach or Santa Monica, Ventura or Oxnard, or anywhere in Southern California, our Palm Springs, San Diego, Orange County, Inland Empire, Los Angeles, Santa Barbara and San Luis Obispo law firm has the knowledge and resources to your business and Lawyers Real Estate Lawyers are . If you are the victim of real estate, business, loan modification or foreclosure scam or fraud, be sure to hire a law firm with experience in loan modification, foreclosure and real estate fraud in California and who will seek to ensure that your rights are to be adequately represented.

 

To learn more about the statute, the amendment and loan foreclosure consultants or settle for legal representation, call the law firm Gibson R. Sebastian at any of the numbers on our website at http://www. SebastianGibsonLaw. com.

A Frederick Neustein, an attorney with the law firm of Charles L Neustein PA and www. StopForelcosureLawyer. com respectfully makes the following:

Florida Foreclosure Fraud Protection Law adopted.

The Attorney General made clear that this new law will not be paid to the attorney / client relationship or the way lawyers, if they are employed, to help distressed homeowners should be applied. This law brings the much needed protection for consumers / homeowners who have had the advantage, supported by Mortgage Loan Modification Companies – many of which are scams. . . Effective 1st October 2008

Five hundred and first 1377 violations with homeowners in the course of residential foreclosure proceedings.



(1) LEGISLATIVE FINDINGS and intent. -The legislature finds that homeowners who are defaulting on their mortgages, in foreclosure or at risk of losing their home due to the non-payment of taxes are vulnerable to fraud, deception and unfair dealings with foreclosure rescue consultants or equity purchasers. The intent of this section is to obtain a homeowner with information necessary to make an informed decision on the sale or transfer of its equity to make a home buyer. It is to require the further intent of this section that context, expressed protect writing to the foreclosure rescue agreements to homeowners from fraud and financial need, to ensure, promote and fair dealing in the purchase and sale of properties in foreclosure or delay; to representations, to prohibit the misleading of the rule, prohibit or restrict unfair contract terms, a reflection for homeowners to enter into contracts for providing services related to saving their homes from foreclosure or preserving their rights to own their homes to afford; homeowner a reasonable and meaningful opportunity to rescind sales to equity purchasers, and to preserve and protect home, equity for the homeowners of this state.

(2) Definitions. -As used in this section, the term:

(A) “Equity purchaser” means any person taking part in a transaction, just, or beneficial ownership interest in a residential real estate as a result of a foreclosure rescue transaction acquires. The term does not refer to a person who acquires the legal, equitable, economic or interest in such property:

1st carried out by a certificate of title from a forced sale under Chapter 45;

2nd If approved a sale of property by law;

3rd With the decision or ruling of a court;

4th A spouse, parents, grandparents, children, grandchildren, siblings or the person or the person’s spouse or

5th As an instrument instead of foreclosure, a workout agreement, a bankruptcy plan or any other agreement between lender and homeowner foreclosure.

(B) “foreclosure rescue consultants” is a person who directly or indirectly makes a solicitation, representation, or provide an offer to a homeowner or in exchange for the payment of money or other consideration, foreclosure-related rescue services. The term does not apply to:

1st A person excluded under s. five hundred and first 212th

2nd A person under the express authority or written approval from the U.S. Department of Housing and Urban Development or other department or agency of the United States or this state to the foreclosure rescue-related services.

3rd A non-profit, non-profit institution or organization, such as the United States Internal Revenue Service determined under s. 501 (c) (3) of the Internal Revenue Code, counseling or advice to owners of residential properties in foreclosure or loan deals if the agency or organization does not facilitate the contract foreclosure-related rescue services with a for-profit lender or person or engaging in foreclosure rescue transactions.

4th A person who owns or payable is an obligation by a lien on all residential real estate secured in foreclosure, when does the person foreclosure-related rescue services in connection with this obligation or lien and the obligation or lien was not the result or a part proposed a foreclosure repossession or foreclosure rescue transaction.

5th A financial institution as defined in s. 655th 005 and a parent or subsidiary of the financial institution or the parent or subsidiary.

6th A licensed mortgage broker, mortgage lender or correspondent lender the mortgage advice or advice regarding residential real estate in foreclosure, offers counseling or advice in the context of services, which is in chapter 494 and without the payment of money or other consideration provided other than a mortgage brokerage fee defined in s. 494th 001.

(C) “foreclosure-related rescue services” means any product or service in connection with, or promising assistance in connection with:

1st Stop avoid or delay foreclosure proceedings on residential homes or

2nd Curing or otherwise addressing a default or failure to pay in respect of a residential mortgage loan obligation.

(D) “Foreclosure rescue transaction” means a transaction:

1st mediated by the residential properties in foreclosure is an equity purchaser and the homeowner has a legal or equitable interest in the residential real estate conveyed, including, without limitation, purchase, a lease option interest, an option to the property, an interest as beneficiary or trustee in a land trust or other interest in the property, mediate and

2nd This is not intended to stop by the parties to avoid or delay foreclosure against the homeowner residential real estate.

(E) “Homeowner” is is any record title owner of residential real property in the execution.

(F) “Residential property” means property consisting of single-family to four-family residential units, one of which is occupied by the owner as his or her principal residence.

(G) “Residential property in foreclosure” means residential property against which it recorded an excellent knowledge of the pendency of foreclosure pursuant to s. 48th 23rd

(3) prohibited acts. -As part of offering or providing foreclosure-related rescue services, a foreclosure rescue consultant may not:

(A) operate or initiate foreclosure-related rescue services are running, without prior written agreement with the homeowner for foreclosure in connection with emergency services or

to (B) solicit, receive for free, or try to collect or secure payment, directly or indirectly included in the foreclosure-related rescue services before the completion or implementation of all services in the agreement for foreclosure related rescue services.

(4) foreclosure-related rescue services; written agreement. –

(A) The written agreement for foreclosure related rescue services must be printed at least 12-point large-type and signed by both parties. The contract must include the name and address of the person, the foreclosure related rescue services, the exact nature and specific details of each service provided, the total amount of fees and conditions that the homeowner will pay for the services, and the date the agreement. The date of the agreement can not be earlier than the date of the homeowner, the agreement will be signed. The foreclosure rescue consultant must be the homeowner a copy of the agreement at not less than one working day before the homeowner review is to sign the agreement.

(B) The homeowner has the right to a written agreement without penalty or obligation to withdraw if the homeowner cancels the contract within three business days after signing the written agreement. The right of withdrawal can not be waived by the homeowner or limited in any manner by the foreclosure rescue consultants. If the homeowner cancels the agreement, all returned payments, which have been given to the foreclosure rescue consultant must be a homeowner within 10 business days after receipt of the notice.

(C) An agreement for foreclosure-related rescue services must contain, immediately above the signature line of a statement in at least 12-point large-type, the following broadly in line with the:

HOMEOWNER’S RIGHT OF CANCELLATION

You may terminate this Agreement for the foreclosure-rescue RELATED without penalty or obligation is subject to CANCEL within 3 working days after the date of this agreement which you signed up for.

The foreclosure consultant RESCUE is ACCEPTING by law any money, property or other form of payment you are promised benefits until ALL complete PROHIBITED. If paid for any reason YOU THE CONSULTANT prior to termination, your payment returned to you within 10 working days after the consultant receives your cancellation notice.

To cancel this use agreement, a signed and dated copy of a statement that is terminated, the Agreement should be shipped (POSTMARKED) or delivered (NAME) at (address) no later than midnight of (date).

IMPORTANT: It is recommended that your lender or mortgage servicer contact before you sign this agreement. Your lender or mortgage servicer may be willing to negotiate a payment plan or a restructuring charge to you.

(D) The recording of the declaration does not prohibit the foreclosure rescue consultant to put the homeowner more time in the agreement as described in the declaration to terminate, in order, provided all other requirements are met this subsection.

(E) The foreclosure rescue consultant must be the homeowner a copy of the signed agreement within three hours after the signing of the agreement homeowners.

(5) Foreclosure Rescue Transactions; written agreement. –

(A) 1 A foreclosure rescue transaction must have a written agreement in at least 12-point large type is completed, signed prepared and by the homeowner and the equity ratio dated the buyer before the execution of each instrument from the homeowner to the equity purchaser quitclaiming, assignment, transfer , conveying, or incriminating an interest in residential real estate in foreclosure. The equity ratio buyer has the homeowner a copy of the completed agreement within 3 hours after the homeowner signs the agreement. The agreement must contain the entire agreement of the parties and must contain:

a. The name, business address and telephone number of the equity purchaser.

b. The address and full legal description of the property.

c. Clear and conspicuous disclosure of financial or legal obligations of the homeowner to be borne by the equity purchaser.

d. The total price for the equity purchaser in connection with or incident to the acquisition of property by the equity purchaser to be paid.

e. The conditions for the payment or other consideration, including but not limited to be, any services that the equity purchaser represents will be performed for the homeowner before or after the sale.

to be transferred f. The date and time when possession of the property to the equity purchaser.

2nd A foreclosure rescue transaction agreement must contain, before the signing line, a statement in at least 12-point large type, the following broadly in line with the:

I understand that UNDER THIS AGREEMENT I sell MY HOME TO THE OTHER UNDERSIGNED PARTY.

3rd A foreclosure rescue transaction agreement must comply with the specifications of each option or right to the residential real estate in foreclosure purchase, including the specific amounts of escrow payments or deposit, Down payment, purchase price, closing costs, commissions or other fees or government spending.

4th A foreclosure rescue transaction agreement must be with all applicable provisions of 15 USC ss comply. 1600 et seq. and related regulations.

(B) The homeowner may cancel the foreclosure rescue transaction agreement, if the homeowner to the equity purchaser notified of such cancellation no later than 5:00 p. m on 3 Working day after the signing of the written agreement. All funds under the equity purchaser to the homeowner or the homeowner to the equity purchaser to be paid must be returned at cancellation. The right of withdrawal is not restricted or otherwise affect the homeowner the right to cancel the transaction under a law other. The right of withdrawal can not be waived by the homeowner or limited in any way by the equity purchaser. The equity ratio of the buyer to homeowners who signed on the date of the written agreement is an indication of the homeowner the right to cancel the foreclosure rescue transaction as set out in this subsection. The notice, which will be set forth on a separate cover page of the written agreement that no other written or graphic material must contain, in at least 12-point large-type, double-spaced, and are as follows:

NOTICE TO homeowner / seller

PLEASE READ this form completely and carefully. IT contains valuable information on withdrawal.

This contract ARE YOU consent to sell your house. You may cancel this transaction at any time before 05.00 clock of the third business day after receipt of this information.

This cancellation right can not be waived in any manner by you or by THE BUYER.

Money paid directly to the purchaser must present you will be returned upon termination of the BUYER. No money from you must be paid by the buyer will be returned at cancellation.

Cancel SIGN this form and sends it to the purchaser of 5.00 ON (date) at (address). The best thing is their request by registered mail or express delivery, RETURN RECEIPT MAIL and a photocopy of the signed form and keep your post office account.

I (we) will cancel the transaction.

Seller’s Signature

Printed name of the seller

Seller’s Signature

Printed name of the seller

Date

(C) In any foreclosure rescue transaction in which the homeowner the right to repurchase the residential real estate provides the homeowner has a 30-day right to cure any default of the terms of the contract with the equity purchaser, and this right to cure may be to exercise at three different times. The homeowner the right to cure is to be included in any written agreement required by this subsection.

(D) In any foreclosure rescue transaction exercising before or at the time of transfer, the equity purchaser in full or discharged lien foreclosure, and all prior liens, which are not extinguished by the foreclosure.

(E) If the homeowner has the right to repurchase the residential real estate, the buyer must verify capital and be able to demonstrate that the homeowner has or will receive, an adequate ability to make the necessary payments to the possibility, in the context of Repurchase practice have a written agreement. For the purposes of this point there is a rebuttable presumption that the homeowner a reasonable opportunity to the payments required to repurchase the property if the homeowner does not exceed the monthly payments for primary housing costs and regular monthly principal and interest payments on other personal debt to must make 60 percent of the homeowners, the monthly gross income.

(F) If the homeowner has the right to repurchase the residential real estate, the price the homeowner pays may not be unconscionable, unfair, unreasonable or commercial. A rebuttable presumption that only occurs between the equity purchaser and the homeowner that the foreclosure rescue transaction is unconscionable if the homeowner is the repurchase price is greater than 17 percent per year paid more than the sum of the equity buyers to acquire to improve, preserve and maintain the property. Unless the repurchase agreement or memorandum of the repurchase agreement in accordance with the recorded 695th s. Product safety. 01, because of the presumption under this subsection shall not apply against creditors or subsequent purchasers apply for a valuable consideration and without notice.

(6) rebuttable presumption. – Each foreclosure rescue transaction with a lease option or other repurchase agreement creates a rebuttable presumption, solely between the buyer and the equity a homeowner that the transaction a loan transaction and the transfer from the homeowner to the equity purchaser is a mortgage for s. 697th 01. Unless the lease option or other repurchase agreement or a memorandum of lease or other repurchase option, is in accordance with s. captured 695th Product safety. 01, the presumption under this subsection shall not create or against creditors subsequent purchaser shall apply for a valuable consideration and without notice.

(7) violations. – A person who contravenes any provision of this section is guilty of an unfair and deceptive trade practices of the practice as in Part II of this chapter. Violations are liable for penalties and remedies in Part II of this chapter, including a fine not to exceed $ 15,000 per violation.