Gov. helps homeowners with mortgages

March 9, 2009 4:58:52 PM PDT
Last year, Governor Schwarzenegger pledged to work with lenders on loan modifications in an effort to help 100,000 Californians stay in their homes.

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Many homes are up for sale, but today the governor has bragging rights; last year 136,000 loan modifications were completed in California.

Many companies have been setting up shop to provide loan modification services, and many of them are being served with cease and desist orders.

"In these cases, most of them are people who don't have a license that are doing loan modifications and collecting fees in advance without having an advanced fee agreement. So we are telling them, look you cannot do that, it is illegal stop it," said Real Estate Commissioner Jeff Davi.

The Department of Real Estate can tell you if the company is licensed and if it has the legal right to accept fees upfront -- most do not.

Also on Monday, three individuals pled guilty to loan modification fraud, they are looking at as much as six years in prison.

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