Has California SB 94 Affected You?

The passing of State Bill 94 wreaked havoc on the loan modification industry in California. Although the bill was anticipated by some for a while, many were taken by surprise and all operations essentially ceased overnight.

This regulation passed to prohibit loan modification companies, including attorneys, from charging up-front fees. Loan modification companies have reportedly found that when fees are not collected up front, the account typically ends up in collections.

While SB 94 initially seems like an act to protect homeowners and weed out unethical loan modification companies, ultimately it’s the homeowners and borrowers that experience the whiplash … again. Now, homeowners are forced to deal directly with their lender without third-party representation. They are left exposed and unprotected.

Loan Mod Education is Key

What are you, your clients and your network currently doing for loan modification assistance in California now that SB 94 is in effect?

The Homeowner Defense Network (The HDN) specializes in educating homeowners so they have the professional tools to modify their own loans. We’ve worked with hundreds of homeowners seeking information on loan modification.

Many homeowners are misinformed and don’t know what steps or strategy to take. Oftentimes, we are contacted weeks or months after they’ve attempted a loan modification on their own with no support. And typically, their situation has become worse. Borrowers should be aware of signs of an uncooperative lender, which is covered in The HDN’s curriculum.

Foreclosure or any threat of default requires immediate action. This action is not always obvious. Most borrowers do not know the strategy and significance of a hardship letter, loan mod proposal or even a forensic audit.

We specialize in not only educating homeowners but also connecting them with resources such as trusted lawyers and institutions. Members of our network are very knowledgeable of the dynamic and ever-changing loan modification industry and lender guidelines.

We’ve actually established good relationships with lenders as a result of performing hundreds of successful modifications. The lender is interested in this type of relationship not only because of the economy of scale, but also knowing what to expect. When the lender knows what to expect, it rids the typical loan mod process of mystery and confusion between borrower and bank personnel.

Put Experts on Your Side

So who is a California homeowner to turn to? For borrowers, brokers and agents, The HDN’s Loan Modification Do-It-Yourself program is a nationwide option. This service is a fraction of the cost of what a homeowner would pay for an actual loan modification company’s service.

For a homeowner who is ready to face the lender with professional knowledge from experienced industry experts, The HDN is the place to turn. If this article speaks to you or could help someone that you know, please provide feedback or get in touch with us directly.

For more information on The HDN’s Loan Modification Do-It-Yourself program, visit www.LoanModDIY.org. For more on The Homeowner Defense Network, visit www.TheHDN.org.

Best,

Brett Robbins
President
The Homeowner Defense Network