Great news for California buyers and consumers:
1.Buyers to choose own escrow – REO Transactions
Effective immediately, the Buyer’s Choice Act allows buyers the ability to choose the escrow and title company of their choice. Nearly every REO (Bank Owned) listing will have an escrow and title company already assigned to it when it hits the market, and they want you to use their company to make things easier for them. Thus, the escrow/title companies charge a large amount of money than local companies. In the past, the buyers waive the right in writing and go along with the escrow/title companies (it) Bank chose in order to complete the transaction.
Now, the consumers/buyers do not have to suffer extra expenses, with the new law, they can select a local company to help them with the transaction.
2.No Upfront Fee to Any Loan Modifiers
Also effective Immediately: The law prohibits any loan modifiers from collecting any fees until AFTER the service is fully completed. Now, this doesn’t mean that your entire process has to be completed. They are still allowed to break their services into small pieces. So they can charge you for collecting and processing your initial information, then for submitting to the lender, then for each step of the negotiation process, and collect their fee as each step is completed. But this definitely puts an end to the process whereby they can collect any up-front money from you prior to even starting on your file.
The other change is that the loan modifiers must now give you a written statement that paying for their services is unnecessary because there are other free government options to try to get your loan modification.
BOTTOM LINE: CONTACT YOUR LENDER DIRECT TO AVOID ANY UNNECESSARY CHARGES FRIST.