I written repeatedly about paying firms upfront for loan modifications. States, including Oregon, have done what they can. Now the Feds are getting into the act.

A few days ago, the Federal Trade Commission proposed a rule that would stop for-profit companies who work with lenders and servicers on behalf of homeowners to modify loans or avoid foreclosure from collecting payment until the services were actually provided. Other restrictions were also suggested.

This is already the rule in Oregon. Moreover, anyone offering foreclosure avoidance services have to  provide a clear and unambiguous contract.

I'm proud to say that at the Mortgage Rescue Cafe, we have aleways done so. I believe Terradigm Real Estate Consultancy, who set up the Mortgage Rescue Cafe, is the only licensed brokerage offering foreclosure avoidance advice, by contract, in conjunction with its other real estate activity.

But do not pay upfront. Retainers we collect go into a trust account until the service is provided. No service, and the client gets his or her money back.  Pretty simple.

We have said we won't do loan modifications, Well, we might in some circumstances, because so many people are having trouble with the paperwork their lenders or servicers are requiring...then lose...and ask for again...and lose...and so on.