Dealing with Debt

questions & answers

Question: I'm 66 and have applied for a Loan Modification (it was approved) however, the service r is asking for "Good Faith" money up front before they will finalize the Modification Agreement. This up-front money was NEVER mentioned in any of their correspondence and when I received my Modification packet this past Saturday ...in their cover letter they mention this "good faith" money....but it is NOT part of the Modification Agreement. Is this legal for them to ask for 4 months of payemnts and then start the actual modification payment 12/1/2015? They want this money AND the agreement before Tuesday the 17th ..so this is VERY URGENT for me to receive some advise ...and should I sign the agreement. I'm also searching for a Pro Bono attorney to review these documents. ###

Answer: Assuming the Modification lender is the same as the Original lender, you should review the original loan agreement regarding future Loan Modification fees. If this is a different lender, you should be wary of abusive lending practices. See the Arizona Attorney General's publication “Avoiding Loan Modification and Foreclosure Scams” which addresses the problem with improper upfront “Good Faith” fees. https://www.azag.gov/sites/default/files/documents/files/ForeclosureScamBrochure.pdf With regard to free legal assistance http://www.azlawhelp.org/accesstojustice/

Comments:

QUESTIONS

  • I'm 66 and have applied for a Loan Modification (it was approved) however, the service r is asking for "Good Faith" money up front before they will finalize the Modification Agreement. This up-front money was NEVER mentioned in any of their correspondence and when I received my Modification packet this past Saturday ...in their cover letter they mention this "good faith" money....but it is NOT part of the Modification Agreement. Is this legal for them to ask for 4 months of payemnts and then start the actual modification payment 12/1/2015? They want this money AND the agreement before Tuesday the 17th ..so this is VERY URGENT for me to receive some advise ...and should I sign the agreement. I'm also searching for a Pro Bono attorney to review these documents. ###

STORIES

  • Age discrimination in the workplace. . .
  • He told me that I could actually get all the money I needed by using my home as collateral. . .
  • He told me that I could actually get all the money I needed by using my home as collateral. . .

LegalLEARN

YOUR FEEDBACK IS NEEDED

  • Welcome to our Newly Redesigned Website! Let us know how we are doing! Please take a couple of minutes to fill out our survey.

FIND LEGAL HELP

  • Please select your county of residence below.

    County:
     

OTHER LEGAL RESOURCES

  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
    800-799-7233
  • Bankruptcy Court Self Help Center
    866-553-0893
  • Certified Legal Document Preparer Program
    Link

ORGANIZATIONS