State Officials Issue Desist and Refrain Orders Against Loan Modification Firm Operating Unlawfully

2nd Chance Negotiations, Inc. Ordered to Stop Loan Modification Services
Immediately
SACRAMENTO, Calif.--(Business Wire)--
After a joint investigation, the California Departments of Corporations (DOC)
and Real Estate (DRE) issued separate Desist and Refrain Orders against 2nd
Chance Negotiations, Inc., ordering the company to stop performing loan
modification services.

"While the current market has created some wonderful opportunities for those
looking to buy, it has also fostered an environment ripe for abuse," DRE
Commissioner Jeff Davi said. "With so many folks struggling to stay in their
homes, foreclosure rescue scams have risen dramatically. The department is
aggressively pursuing individuals and companies trying to cash in on
Californians in their time of need."

2nd Chance Negotiations, Inc., based in Fair Oaks, California, solicited
financially stressed borrowers, and, in exchange for an upfront fee, promised
borrowers they would negotiate with the borrower`s lender to modify the terms of
the borrower`s loan. However, the joint investigation established that 2nd
Chance Negotiations, Inc. was not licensed and/or legally authorized to perform
the promised services or collect advance fees. 2nd Chance Negotiations, Inc. can
request an administrative hearing to challenge the orders.

"The State has worked hard through various means to help distressed homeowners
avoid foreclosure," stated DOC Commissioner Preston DuFauchard. "We will take
swift action against unscrupulous operators who violate State laws."

Loan modification scams are worrisome and widespread. Last July, the DRE had
fewer than 10 complaints involving loan modification companies. Today the
department has 500 pending investigations. In addition, since last October the
DRE has filed over 60 Desist and Refrain Orders and/or Accusations involving
loan modification scams.

The DRE Web site has important consumer information on how consumers can protect
themselves against unscrupulous providers who collect advance fees promising
financially stressed borrowers relief, but instead, do nothing. The Commissioner
encourages all consumers to log on to DRE`s Web site at
http://www.dre.ca.gov/mlb_adv_fees.html, and to check out brokers wanting an
up-front fee in exchange for loan modification help.

"It is important to keep in mind that no person is required to pay a third party
for a loan modification," Commissioner Davi stated. "A consumer can simply call
his or her lender or use the services of a nonprofit housing counselor."

In general, and with limited exceptions, only licensed real estate brokers and
California attorneys operating as lawyers within the scope of their license, may
collect advance fees. Real estate brokers must have their advance fee agreement
reviewed and sanctioned by the DRE prior to its use. Information on DRE`s web
site will help consumers ensure that a company wanting an advance fee is
properly licensed and can legally collect an advance fee before they sign on the
dotted line.

For more information about DRE and its programs visit www.dre.ca.gov.

For California Department of Real Estate
Tom Pool, 916-227-0772

Copyright Business Wire 2009