Most people in Antioch, Brentwood, Walnut Creek and Hercules learn early in life not to expect much help from the government.  Sure, the government runs schools and maintains the roads but when an individual has a problem that person should expect little or no help from the government.  2013 saw a couple more examples of the “help” that was no help.  Let me explain.

In 2011 and 2012 mortgage interest rates hit all-time lows, making it seem that struggling homeowners finally had a chance to refinance and take advantage of the low rates.  Unfortunately, in 2011 most homeowners had no equity in their homes and for that reason were unable to take advantage of the low rates.  By 2013, home prices began to rise and so did interest rates.  That meant that just as many homeowners had enough equity to refinance their mortgages, the rates were no longer attractive.  Who controls interest rates?  The government by and through the Federal Reserve.  The individual loses out.  This is not the only example in 2013.

As property values were (finally) increasing in 2013, and the foreclosure crisis waning, the California legislature decided it was time to give homeowners some additional protection from deficiency claims after foreclosure.  Specifically, Senate Bill 426, signed into law in July 2013 and effective on January 1, 2014, strengthens California’s existing anti-deficiency statutes.  Knowing that foreclosures peaked in 2011 makes it easy to see this comes too late for most troubled homeowners.

This sounds bad, but all is not lost; if you’re a homeowner facing foreclosure, you have rights!

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa County and have debt problems, contact us for a free in-office consultation.  Offices in Walnut Creek, Antioch and Hercules.

Although this is not new, it’s the subject of many scams and stubborn misunderstanding in society.  This post should be read in conjunction with a related post “Mortgage Modifications – No Advanced Fees, Mandatory Disclosures”

California Law strictly limits the activities and charges of a Foreclosure Consultant.

Foreclosure Consultant – California Civil Code section 2945(a) defines “foreclosure consultant” as any person (excludes lawyers) who performs for compensation certain services for a homeowner or makes any solicitation, representation, or offer to do so. The services include: stopping or postponing a foreclosure sale, obtaining forbearance from any beneficiary or mortgagee, obtaining reinstatement of a loan obligation, obtaining an extension for reinstating a loan obligation, obtaining a waiver of an acceleration clause, assisting the owner in getting a loan, and saving the owner’s residence from foreclosure.

Protections and Disclosures – California Civil Code Section 2945 imposes numerous restrictions on foreclosure consultants. For example, agreements with foreclosure consultants must be in writing and contain specific disclosures. Also, foreclosure consultants are prohibited from collecting a fee for any services until after the services have been fully performed. In addition, distressed homeowners have a right in certain circumstances to cancel foreclosure consultant agreements. These protections cannot be waived which means nothing in a contract can eliminate or waive these requirements.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation.  We have offices in Walnut Creek, Antioch, and Hercules.