Principal Loan Reduction: Law Designed To Protect Consumers And Their Homes Backfires
St Louis Mortgage and Real Estate News –
St Louis Mortgage Lending and Loan Reduction News: California Loan Modification Law Backfires On Homeowners While Helping Banks St Louis Home Mortgage and Commercial Loans | Principal Reduction Program
877-334-0210 or 314-334-0210 | Floyd Tapia, Commercial Loan Modification and Refinance
It seems there is no stop to how banks have surprisingly prospered monetarily through this horrible mortgage crisis.
Let's start with the exorbitant bailouts they received and kept and move forward to the blind assistance of the new idiotic law in place in California.
Sad to say, more and more lawyers throughout California say they have no choice but to reject clients looking for representation in mortgage loan modification cases because
of this new state law that sharply restricts how they can be paid.
Under the measure, passed overwhelmingly by the State Legislature and backed by the state bar association who in essence tied their own members' hands, lawyers and loan compliance consultants who work on loan modifications cannot receive any money until the work is complete.
The bar association says that under the (misguided) law, clients cannot even put retainers in trust accounts.
The law, which has few parallels in other states, was devised to eliminate swindlers in which modification firms made promises about what their lawyers could do, charged hefty fees and then disappeared.
But foreclosure specialists say there has been an unintended consequence and that is the honest lawyers and loan mod companies can no longer afford to assist people who feel helpless on account of lenders that they see as elusive, unyielding and skilled at losing paperwork.
The revelations three months ago that large banks were sloppy and negligent in preparing foreclosure documents underscore just how important it is for distressed homeowners to have legal representation, lawyers and consumer advocates are saying.
Homeowners whose cases were handled improperly have little way of knowing how bad their situation actually is.
Even if they were to find out, they would be hard-pressed to challenge a lender without utilizing a knowledgeable lawyer.
“Consumers just don’t know what is going on,” said Walter Hackett, a former banker who is now a lawyer for a nonprofit service in Riverside.
He continues: “They get a piece of paper saying they are going to lose their homes and they freak out.”
The problem for lawyers is that even a simple loan modification, in which the loan is restructured so the borrower can afford the monthly payments, is a timely marathon, putting off their payday for months if not years.
If the bank refuses to come to terms, the client may have to file for bankruptcy in which case the lawyer will never be paid. This is clearly unfair.
Many experts are saying that the banks were also quietly behind this legal maneuver in California as they do not want to have to deal with legal experts as they try to help these confused homeowners.
This unfortunate backlash and legal snafu has now given most banks (a.k.a institutional swindlers as some would say) "carte blanche" as in full powers in doing whatever they feel is advantageous for themselves and clearly not for the poor homeowner.
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Articles and News Sponsored by Liberty Lending Consultants
When applying for any type of St Louis mortgage or refinancing, call Liberty Lending Consultants, the recognized St Louis home loan and refinancing experts, at (314) 336-9111 and ask for Steve Swan or Doug Stahlschmidt.
Business Owners: Call us at (314) 334-0210 and retain us for one of the best commercial loan modification and principal loan reduction programs available. A principal reduction or loan modification can help if you are underwater with negative equity. As commercial lending and loan modification program consultants, Floyd Tapia and his lending and legal team can focus on bringing you innovative private lending solutions to meet all types of financing needs. We have access to the largest portfolio of private lending institutions and investor backed funding sources available. Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.
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