If you are a California Notary like I am, you should make sure that you are aware of this new bill passed on October 11, 2009 regarding accepting advance fees for services related to foreclosure rescue or loan modification services. It is important for us notaries to stay on top of all the changes that affect us.

BILL: Senate Bill 94
EFFECTIVE: October 11, 2009
SIGNED: October 11, 2009

Senate Bill 94 prohibits any person — including a real estate licensee or California attorney — from offering or negotiating “foreclosure rescue” or “loan modification” services where an advance fee is charged before performing all services provided in the contract. The law also requires written notification be included in the contract to inform homeowners that the services of these intermediaries are not required.

California Notaries and Signing Agents have been asked to accept assignments from foreclosure rescue and loan modification companies seeking to intervene between a homeowner and lender by providing services to renegotiate a mortgage or to postpone or preclude foreclosure. Because the new law prohibits the collection of any type of advance fee by a foreclosure rescue company, California Notaries and Signing Agents should not agree to perform an assignment that asks the Notary or Signing Agent to obtain a check for advance fees.

Foreclosure rescue companies are also prohibited from taking a power of attorney from a client.

Attorneys General across the nation are warning Notaries not to accept work from “Mortgage Rescue” firms. Get important information and news here

View the text of the law, details about the changes and an NNA analysis here here