Lew-V.

[Lew-V]

i am in California and a real estate broker. how can one get paid to do loss mitigation without violating our "foreclosure consulting" laws? they state we are not even supposed to "ASK" for any money up front or we are in violation. i really think i would never get paid, even a modest amount, if i waited till the deal was done. anyone have any ideas on how to insure payment?

[Gonetodocs]

Bumped to the top of the list. Anybody got anything for this topic? Please advise

[877YouKeep]

Take a deposit that will be equal to your fee. Put in a non interest bearing trust account. Once you have completed the work, the homeowner will pay you and you take the money in the account and put toward contribution and if there is excess $ send it back. Just get a deposit that goes toward contribution once the work is complete. If you are not successful with the case you send the money back or however you have it in your contract

[Gonetodocs]

Cool,
That makes sense.

[FosterCA]

Good Morning Folks

I also am in California and am SOOOO glad to see this discussion as I have struggled with this problem with out a solution. I am not an attorney and do not give legal advice.
May I play the part of the "Devil's Advocate" in hope of finding a solution acceptable to the Owner and the Mitigater?

California Civil Code 2945 rules here. I have lifted part of 2945.3.c for reference. "NOTICE REQUIRED BY CALIFORNIA LAW. ___________________ or anyone working for him or her CANNOT: (1) Take any money from you or ask you for money until __________________ has completely finished doing everything he or she said he or she would do; and (2) Ask you to sign or have you sign any lien, deed of trust or deed." End of quote.

This was legislated to protect our citizens BUT has worked against them because no one knows how to honestly help with any hope of being paid until after all work is complete. You can see the challenge.
I do not look for an unfair advantage, just some of assurance of being paid.
Regards and Thank You.

[Gonetodocs]

OK FosterCA,
Just a little clarification for myself if nothing else. I had to look it up again and just add this text to the top of that last post to understand the verbage in the context that you posted.

Add this verbage to the top of that Civil Code text above.

2945.3. (a) Every contract shall be in writing and shall fully disclose the exact nature of the foreclosure consultant's services and the total amount and terms of compensation.
(b) The following notice, printed in at least 14-point boldface type and completed with the name of the foreclosure consultant, shall be printed immediately above the statement required by subdivision
(c):

The text is ultra clear here and I believe that 877YouKeep's idea is a good solution unless anyone else has any better ideas.

[FosterCA]

Hi Gonetodocs

Thanks for the "addition". It does make the issue more understandable if legislation is ever understandable!
Lets hear from you folks in California if only to let me know you are out there.
Offers of help gladly accepted short of WMD!
Regards

[Nomarac]

Has anyone spoken to an existing Loss Mitigator working cases in California? Is so, what is their method for fee collection?

[FosterCA]

Hi Nomarac
I have been asking this question for some time with out a good answer.
I can tell you that OUT OF STATE mitigators don't seem to care about CA law. They feel they are shielded from CA law by distance but you can be sure if a CA resident is working with an OUT OF STATE company and the law ignored, the state will come down hard.

I think that the OUT OF STATE people are in for it one day when a CA district attorney with stars in eyes want some free attention via TV, radio and newspapers and files suit!

I hope answers to my question are from people who do LM business in CA, their business is located in CA and reside in CA. There has to be a solution that's fairfor the home owner and the mitigator.
This law hurts home owners CA that are in foreclosure because there are good mitigators who don't know how to deal with this Civil Code.
i am thru venting! Thanks

[Nomarac]

Finally, I have spoken with an established firm in CA and doing loss mitigations for homeowners in CA. By all appearances they are fairly successful but they take no particular precaution to protect themselves from the CA Civil Code previously posted. I don't know how to feel about that. His firm has been operating for years and their procedure does not adequately protect them as far as I am concerned.