For those brokers still in the loan modification business, this post is long overdue.  Loan modifications for primary residences have fairly strict guidelines in documentation to support the government backed loan modification.  For the rentals, lender standard are much less restrictive when it comes to documentation.  When are you liable for false or inaccurate documentation?

When are you liable?

A commo

As you have all likely heard, if you are are a real estate broker, or a licensed corporation, who has been issued a “no objection” letter by the DRE, you may no longer enter into the agreements effective October 11, 2009; however, according to the DRE, agreements entered into and advance fees collected prior to October 11, 2009 are not affected.

SB 94 signed into law with a press release from the governor’s office posted.  Please keep in mind, as soon as the signing is certified, it is put into effect.  This should occur very soon this week.  Read: What does SB 94 mean to you?

This will outline the ramifications of SB 94’s prohibition and restriction of advance fees in relation to loan modifications services, specifically by licensed real estate brokers. This post is not exhaustive of every situation and is only general commentary on the bill.  A specific legal consultation applicable to your specific situation should be obtained only through retaining Pasha Law and not by depending on this post. Read More