Posts (RSS)California Attorney General Helps Reduce Foreclosures Homes
In an effort to help control the rising number of foreclosures homes statewide, California Attorney General Jerry Brown has released an order requiring all foreclosure prevention counselors and consultants to register with his state office starting July 1.
Attorney General Brown has also required them to post a bond of $100,000. Any foreclosure prevention consultant or counselor not complying with the order will face a jail time of one year and up to $25,000 in fines for every violation.
Brown said he is concerned about the rising number of California homeowners spending thousands of dollars in paying foreclosure prevention consultants only to find out later that their homes have already become foreclosures homes.
Brown explained further that California, being one of the states hardest hit by foreclosures homes, has been the favorite playground of fraudulent foreclosure prevention counselors making money from the fears of distressed homeowners.
In April, California is the third highest in foreclosure rate among the states, according to RealtyTrac’s data. One house in every 138 houses across the state was hit with a foreclosure notice during the month.
Foreclosure prevention consultants who are doing legitimate work and who are really able to work lout loan modifications with lenders will be able to pass the bond and disclosure requirements. Counselors and consultants who are just riding on freely available foreclosure information to extract money from troubled borrowers will be weeded out.
Foreclosure counselors who demand large upfront fees even before they start helping homeowners will also be screened out by the order.
The office of Attorney General Brown will issue a registration certificate for every foreclosure prevention consultant who will register and pay the bond of $100,000. Foreclosure consultants can visit http://ag.ca.gov/register.php listed under Foreclosure Consultant Registry to download the registration form.
Foreclosure consultants are required to submit their completed form and application by July 1.
When the registration of foreclosure prevention consultants and counselors has been completed, troubled homeowners who need assistance to save their houses from becoming foreclosures homes can call the office of Attorney General Brown to inquire about the certification and background of foreclosure consultants.
This effort by California Attorney General Jerry Brown to weed out fraudulent foreclosure prevention consultants is a supplement to the Fraud Enforcement and Recovery Act signed into law by President Obama last May 20. The law will fund federal agents to investigate and pursue cases against persons and companies found to be engaged in fraudulent mortgage activities that contribute to the rising number of foreclosures homes.