The State Bar of California received the resignation of a few attorneys and is currently filing charges against another this month in a continuation of its new, harsher policies towards alleged loan modification fraud.

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The Bar’s supervising counsel in the trail, Suzan J. Anderson, commented recently that southern California seems to be something of a mecca of loan modification scams. Recently, a lawyer from Dana Point, California resigned with various charges against him related to his affiliation with a loan modification group. Another attorney may have his status with the bar changed to ‘involuntarily inactive’, a process that expedites punishment before formal charges are made. It is alleged that he abandoned all of his clients while prematurely and suddenly closing his office without returning fees, and he has admitted to misconduct.

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A third lawyer has had an application for involuntary inactive status filed against him as well, due to an affiliation with Home Relief Services and his misrepresentation of the size and ability of his services to unsuspecting clients. Apparently, he also collected illegal, advance fees and didn’t perform the necessary services to even attempt to get a loan modification for his clients. There will be a hearing on the involuntarily inactive application in four days.

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All in all, more than four hundred complaints about California loan modification specialists are being investigated by the California State Bar in the coming months, hopefully giving homeowners in search of a loan mod some peace of mind.

How can you prevent foreclosure on your home or business? Sometimes it seems hopelessly unmanageable, but there is an answer: a Loan Modification Plan.  This is a simple way to re-negotiate with your lender to try to catch up on your payments by folding past due charges (including possibly escrow or interest) into the balance of unpaid principle.  Or, sometimes a deal can be worked out in which you make payments only on the interest, not paying back the principle.
Or, if you still can’t match payments at this speed, it’s possible to work out a deal with your lender to either extend the timeframe on your loan or reduce the total amount you need to pay. Most lenders would rather reduce the amount they are paid than have you default, and keeping this in mind, it often is much easier than you’d imagine to re-negotiate.
The entire process of a Loan Modification can change around the mortgage you have now, letting you have a clean slate in managing your beautiful home.  But every deal is different for every person, and it’s important to keep your plans flexible depending on what your lender is willing to do for you.