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Important Info and Laws on Home Loan Modification

Rules, Regulations, and Laws on Home Loan Modification

One of the most stressful aspects of the mortgage crisis that faces so many people in San Diego, California is the fact that it involves several complicated rules, regulations, relevant laws and even technical language that’s completely unfamiliar to those who do not have the training, experience and background to understand all that’s involved with every step of the mortgage/loan modification process.

The real estate attorneys at Kerry Steigerwalt’s Pacific Law Center have all of the knowledge and experience necessary to handle your issue, and below is a brief overview of the two areas of law that can become relevant to the loan modification process for the people of San Diego.

California Bankruptcy Laws regarding Home Loan Modification

When someone needs it, the United States Bankruptcy Code exists to provide a safe haven for those who simply cannot keep up with their ongoing financial obligations. While many people are willing to do almost anything to avoid bankruptcy because of the perceived stigma attached to it, the fact is that millions of Americans file for protection every year, so if that’s what you need to do, you’re far from alone.

When it comes to the issue of applying bankruptcy laws to your mortgage problem, there are several ways in which this protection can help you. For instance, bankruptcy laws allow for exemptions on the part of the petitioner, which means that there are limits to what needs to be sold to pay creditors. The reason for these exemptions is because the Bankruptcy Court does not want to leave the petitioner destitute after the discharge process is complete. How the homestead exemption applies to your situation will depend on which chapter of the code you and your attorney choose to use, and you’ll need an attorney’s help to make a sound decision in this regard.

California Real Estate Laws related to Home Loan Modification

California’s real estate laws are extensive and complicated. Therefore, rather than provide an exhaustive list of rules and regulations, those facing a mortgage problem and searching for a loan modification need to know about one regulation right now above all others. This regulation concerns the use of mortgage brokers to help with a loan modification.

California Civil Code Section 2945 states that it is forbidden for ‘mortgage consultants’ to collect any up-front fees for loan modification services if a Notice of Default has been filed against your property. Therefore, if you’ve been contacting brokers for help and you’ve been asked to provide money immediately, you need to understand that this is not only a red flag, but also potentially illegal.

Legalities on California Home Loan Modification

As you see, the process of loan modification is one that’s filled with pitfalls and complicated legalities. As such, you need to be sure that you have the help you need working for you. Contact the real estate attorneys at Kerry Steigerwalt’s Pacific Law Center today to schedule an initial consultation.

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