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/