Jan Brewer

Arizona Loan Modification Law Update

Arizona lawmakers are cracking down on home loan modifiers who promise results for big bucks, but deliver nothing in return.

Governor Jan Brewer just signed into law legislation requiring loan modification officers be licensed and have criminal background checks beginning July 2010.

The new law comes as a relief to homeowners like Jillian Strode.

Strode recently had her loan modified, but worried about being scammed by a home loan modification company.

“I had to be careful who I picked,” she said. “It was scary. I mean this is the American dream and I didn’t want to lose my home.”

Heckathorn turned to Steve Taplin, CEO of American Loan Restructuring for help.

Taplin says he sees a lot of scamming in the industry and welcomes the new law.

“It will force them to have background checks, it will force them to be held to a higher standard and it should really help push out a lot of these people who are taking advantage of people out there,” Taplin said.

He suggests homeowners look for companies that are willing to put the money paid out in escrow until the loan modification is approved. That way homeowners know they won’t be scammed.

“We don’t touch the money until we’ve gotten results,” said Taplin.

Under the new law, home loan modifiers will also undergo 20 hours of education on lending laws.

For more information on Loan Modifications in Arizona simply click the link