About Home Loan Modification in Encinitas

About Home Loan Modification and Things to Beware Of:

Many people can no longer afford to pay their present mortgages due to current economic or health conditions and may be unable to refinance. One option that may be available to you is a Loan Modification.


Just what is a Loan Modification? A loan modification is an agreement between you and your lender to modify one or more of the terms of your loan. Examples of such could be a lower interest rate, extension of loan length (like making a 30 year loan into a 40 year loan), a conversion from an adjustable rate to a fixed rate, the deferring of some of your payments, or any other modifications of loan terms.


The ultimate goal of a Loan Modification is to help people keep their homes, and to offer a sustainable long-term solution that works for you financially.


 BEWARE OF LOAN MODIFICATION CON ARTISTS & SCAMS, WHO USUALLY DEMAND THE PAYMENT OF UPFRONT FEES.  Right now, there are numerous companies and dishonest operators taking advantage of people, (many of whom are unlicensed) that have come into existence as a result of these tough times. Some make people false promises related to their abilities to help get you a loan modification, collect money up front, and ultimately do next to nothing.




A. Do It Yourself ASAP: — You can contact your mortgage servicer or lender. Don’t wait to call until you cannot make or believe you will not be able to make your mortgage payments. Be persistent! – call back many times. Make detailed notes about your attempts to call, when you have left messages, who you speak with, what was said, and what offers are discussed and/or made.

B. Other Free and Safe Options — If you don’t believe you can negotiate a Loan Modification yourself, or if you do not want to, there are free and safe options available.


  • 1) HUD offers Foreclosure Avoidance Counseling and information through various non-profit agencies. Go to www.hud.gov or call 1-800-569-4287.
  • 2) HOPE NOW ALLIANCE: www.hopenow.com is a cooperative effort of loan counselors and lenders and intermediaries from HUD. PH# 1-888-995-HOPE.
  • 3) Work with a legitimate, licensed, qualified company or person.

While it is legal for a real estate broker to charge you in advance of performing the loan modification services before a Notice of Default is recorded, you do not have to pay anything in advance of a successful loan modification, and all broker fees are negotiable. Visit the California Dept of Real Estate website for more information related to collection of advance fees.   www.dre.ca.gov

  • 4) Licensed California attorneys may perform loan modification work, but only when such lawyers render those services are rendered in the course and scope of their practice as an attorney. They can also charge fees in advance (typically called a retainer), and even after a Notice of Default has been recorded. But attorneys must have a written fee agreement with you. And as is the same case with real estate licensees, you do not have to pay anything in advance of a successful loan modification. In addition, all fees are negotiable.
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