Woodland Hills, CA (PRWEB) November 11, 2008: I Short Sale, Inc, a leading nationwide short sale and loss mitigation advisory firm, announces that the State of California has passed a new law to protect homeowners facing foreclosure from fraudulent exploitation.

California has been battered by a wave of foreclosures as the real estate crisis continues to take its toll. According to Realty Trac, a foreclosure tracking firm, the state now accounts for more than a quarter of all foreclosure filings. Fraudulent foreclosure consultants have exploited homeowners, often cheating them out of money or ultimately losing their homes. In response, the California legislature has enacted the foreclosure consultant law (California Civil Code § 2945.) to stop deceitful practices and punish perpetrators.

This new law regulates the activities of people who provide, or offer to provide, foreclosure-related consultation services, such as helping a homeowner stop or postpone a foreclosure sale.

Raffi Tal, COO of I Short Sale, Inc. (www.ishortsale.com), explains, "The passage of this law, which will be effective after July 1, 2009 sets operating guidelines for foreclosure prevention consultants and protects the homeowner from fraud. The main point is to rid the industry of criminal elements and formalize the relationship between the consultant and the distressed homeowner."

Important components of this law state that the consultant may no longer assume power of attorney and must obtain official certification by the state. Consultants conducting business in California must obtain a corporate surety bond in the amount of $100,000 to cover liabilities, can no longer collect upfront fees, and must document each consultation procedure in accordance with the new guidelines.

California Civil Code § 2945 further strengthens penalties for foreclosure-related scams. Victims may file suit to obtain a monetary judgment for damages suffered or other relief as appropriate. Homeowners are advised to be cognizant of threats they face from con artists and to call authorities immediately if they believe they are being swindled.

Tal continues, "Homeowners in foreclosure should be wary when dealing with someone claiming to be a foreclosure specialist who asks for money upfront before providing any service. Before doing business with anyone be sure to check their background, credentials, and reputation. If the deal sounds too good to be true than it probably is."

Specializing in loss mitigation services, I Short Sale, Inc.'s principals have assisted thousands of property owners and lenders avoid the lengthy and costly process of foreclosure and the stressful act of eviction that follows. To contact a loan modification specialist, please call 1.877.907.4678.