State Orders Unlicensed/Unauthorized Loan Modification Firm To Stop Performing Services

In Sacramento, California, Central Valley Business Times reports:

• A Fair Oaks-based company called 2nd Chance Negotiations Inc. has been ordered by the California Departments of Corporations and Real Estate to stop performing loan modification services. [...] The company solicited financially stressed borrowers, and, in exchange for an upfront fee, promised them they would negotiate with the borrower’s lender to modify the terms of the borrower’s loan. However, the joint investigation established that 2nd Chance Negotiations was not licensed and/or legally authorized to perform the promised services or collect advance fees, the state says.

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• In general, and with limited exceptions, only licensed real estate brokers and California attorneys operating as lawyers within the scope of their license, may collect advance fees. Real estate brokers must have their advance fee agreement reviewed and sanctioned by the DRE prior to its use.

For the story, see Central Valley firm ordered to stop loan modifications.