12/15/2010 10:16 AM (PST)

Excerpt from the FTC's news release on their loan mod rule. All provisions of the new rule go into effect Dec. 29, 2010 EXCEPT for the advance fee ban, which goes into effect January 31, 2011.

The most significant consumer protection under the FTC’s new rule is the advance fee ban. Under this provision, mortgage relief companies may not collect any fees until they have provided consumers with a written offer from their lender or servicer that the consumer decides is acceptable and a written document from the lender or servicer describing the key changes to the mortgage that would result if the consumer accepts the offer. The companies also must remind consumers of their right to reject the offer without any charge.

If you are having trouble making your mortgage payments, and assuming this is your residence we are talking about, we have always recommended that you first seek a loan modification through a HUD approved non-profit housing counselor. Call 888-995-4673 to speak with a HUD certified housing counseling agency asap. Many lenders and Freddie MAC are observing foreclosure moratoriums during the holidays. They can evaluate your housing options, open lines of communication with mortgage lenders, negotiate a loan modification, and help you with household budgeting, all at no cost. You'll need to set aside some time for a lengthy phone call.

The national housing counseling hotline (888.995.4673) is also working directly with www.preventloanscams.org, which is a national clearinghouse for loan mod complaints. The housing counseling agency or counselor that the hotline connects you to can also take complaints against loan mod operators and input them into the www.preventloanscams.org database. These are two separate entities but they are working together and are both trustworthy, government-sponsored initiatives.

12/17/2010 7:41 AM (PST)

Thanks for the helpful info D!

Here's an updated link to the important notes mentioned above on the BBB of the Southland's FaceBook page:

http://www.facebook.com/notes.php?id=117568537756