Looks like the California Bar is starting to get with the program as far as loan modification shenanigans are concerned. Followers of this blog may recall my strong disatisfaction with the way most mods are being rolled out to date. You can click here for a quick review:
- Loan Modifications are Good… Right?
- Loan Modifications: Helping Hand or Moral Hazard?
- Critique of the U.S. Mortgage Plan
, this bulletin just in from the California Assocation for Realtors “Reallegal” division…
“The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.
Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at here.”
My loan modification advice remains this: if you think you may be a candidate for a modification, then call your loan servicer directly to see what can be worked out. Do not miss payments in order to qualify, and do not pay a third party for something you can do yourself. Not that it won’t be a completely frustrating phone hell experience, but if you can’t get it done, I would be skeptical that someone else can do it for you.