Del Mar, CA (PRWEB) October 13, 2009
California homeowners looking to modify their home mortgages gained an important victory Monday when Governor Arnold Schwarzenegger approved Senate Bill 94.
The bill abolishes the common practice in the loan modification sector of collecting advance fees prior to completing any loan modification services.
The new law, which aims to reduce the amount of fraudulent activity in the industry, will force many loan mitigation companies to close their doors while many others will scramble to come into compliance.
For one company, however, it is a vindication of well-established business practices. American Mitigation Law Group has been performing California loan modification services with no advance fees since April 2009, well before Monday's bill became law.
The Del Mar-based company fully completes each and every service it has contracted to perform for its clients prior to collecting any fees. This allows AMLG's clients to see the results of the contracted work performed by AMLG before any payment is required.
In an industry where the norm has been to accept advance fees prior to performing any services, American Mitigation Law Group is a unique company that fully understands the benefits of SB 94 for both homeowners and businesses alike.
Over the next few years, third party mitigation companies should play a vital role in assisting the many state residents that are facing difficult times with their homes and mortgages.
The passage of SB 94 in California goes a long way to help legitimize the loan modification industry. It certainly acknowledges the important role loan mitigation companies play in bringing California out of its massive housing slump.
Still, the law's abolishment of advance fees cannot completely eliminate cases of fraud. Consumer education is important to reduce the number of people getting scammed.
AMLG has established a California SB 94 fact page designed to educate homeowners. The information can be reached via the company's home loan modification website at http://www.amlawgroup.net. Click "Resources" and then select "California SB 94" from the drop down.
Through these turbulent times, AMLG will continue to serve the residents of California and welcomes these new and beneficial changes to its industry.