Well, 2011 is here and the loan modification industry is about to be all shook up. There are new laws going into effect in the end of January, 2011 that will impact many loan modification companies.
The new change is a federal law that prohibits upfront fees from any loan modification company. Of course, attorneys can get around this. This means that if you hire a company to help you get a loan modification approved, they can’t charge you fees until your modification is approved by your lender.
This really doesn’t effect Californians so much, as California has adopted this policy already, but companies who were doing business in California and providing loan modification services for homeowners in other states are definitely going to be impacted.
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