State attorney general issues consumer alert for homeowners

The state attorney general has issued a consumer alert warning homeowners to "avoid individuals and businesses that charge up-front fees for foreclosure relief services in light of a just-enacted state law that makes this abusive practice subject to prosecution."  Recently signed Senate Bill 94 makes it unlawful for any licensed attorney or real estate agent "who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation paid by the borrower ... to claim, demand, charge, collect, or receive any compensation until after the attorney or agent has fully performed each and every service the licensee contracted to perform or represented that he, she, or it would perform."  If someone demands an up-front fee for foreclosure assistance services, you can report them to the Attorney General's Office at (800) 952-5225, or file a complaint at www.ag.ca.gov/consumers/general.php