Illegal Loan Modification Companies Rampant in California

San Diego, CA – Financial companies promising to help those stuck in sub-prime or adjustable rate loans have begun springing up all over southern California over the past couple of years. They call themselves Loan Modification specialist and they are illegally accepting money and promising results they cannot or have no intention of meeting. Due to the potential for abuse in the loan modification area, the Department of Real Estate in California has begun regulating advance fees. Therefore anyone who proposes collection on an advance fee must submit all advertising materials and the advance fee agreement no less than ten days prior to publication. The Commissioner has then ten days from the date of receipt to either deny or grant approval. Anyone caught disseminating approved or non-approved materials will be found guilty of a misdemeanor punishable by a fine of $1,000 as well as a possible six month jail. The fines are higher for mortgage loan brokers and corporations. “What we want to do is help prevent this from happening to good mortgage and real estate brokers,” says, Kent VanDerSchuit, Attorney and Counselor at Law at the VanDerSchuit Law Group. “Most of these guys aren’t even aware they are breaking the law. They’re looking for a way to pay their own mortgage, their own bills, and live a good life. For the most part they are on the up and up, but still they are doing something illegal and will surely be arrested if caught.” The VanDerSchuit Law Group has office in San Diego and Los Angeles. They can be reached at 1 (866)938-6649, or visit loanmodificationcompliance.com.


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As Loan Modification Compliance Attorneys, we can help you get approved to handle advanced fee services. You need to be approved by the Department of Real Estate to execute such a transaction.

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