In the waning days of 2009 news emerged of a significant development regarding Northern California loan modifications. On December 29 Campbell, California-based loan modification company Whitfield Financial was forced to out of business after surrendering its real estate license. According to an article in the Sacramento Bee word of the closure came in a statement from the California Department of Real Estate. The statement noted that Whitfield had actually surrendered its license to the Department a week earlier.
The move marks a very visible effort on Sacramento's part to enforce new laws governing California loan modifications signed last year by Gov. Arnold Schwarzenegger. According to the Bee, Whitfield was accused of collecting advance fees for California loan modifications - a practice that is now illegal in California.
The news regarding Whitfield is a reminder of the importance of working with a reputable Bay Area loan modification attorney if you are considering an attempt to negotiate with lenders regarding your mortgage. San Francisco loan modifications can be a powerful tool for avoiding bankruptcy, mortgage default and foreclosure, but it is important to ensure that the professionals assisting you are working within the law.
The Bee quotes the state DRE as saying "it has 1,300 pending investigations of complaints against California loan modification firms." That is good news from a consumer protection standpoint, but it reinforces the need to choose carefully when selecting a San Francisco, Oakland or Contra Costa County bankruptcy professional to assist with your loan modification efforts.
Sacramento Bee: Whitfield financial surrenders its license
