I have been getting several calls regarding loan modifications. I would like to help these people because they trust me and their are a lot of scam artist out there. My question is -- Has anyone had luck with the bank paying for you to help the home owner with loan modification? Or is the only way to do it is to have the home owner pay me for my services. 

Any help would be greatly appreciated. 


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what qualifications do you have to do this on behalf of others?  Most attorney's can't get them done.

I did about 75 short sales this year.  In the past month out of the three I have tried I got two of them completed. To me they are easier than a short sale. That is if they qualify. The reason I took on these three (free of charge) was because they had, in my mind, been cheated by either and attorney or an accountant. One attorney charged almost $5,000. When I called the bank -- they hadn't even received a release of information from said attorney.

Congrats on the Short sale volume.  I would stay away from the mods if you are an agent.  They fall under Illinois distressed property laws and Lisa Madigan hates anyone doing them, so perhaps you do not want to attract that kind of attention.

In Utah the Division says NOR REALTORS you Need a Mortgage License. 

We are real estate agents - not loan officers. Unless you have a mortgage license, I would not be involving myself in loan modifications.  Your errors and omissions insurance company, I do not believe, would cover you if you were involved in a lawsuit.  Be very careful!!! 

Diane, E&O won't cover short sales either

That is such a great question, who better to help homeowner's than Realtors who have spent years negotiating the debt with their lender's to do a short sale. However, here in Arizona, the powers at be, see it differently. The law requires anyone that engages a client for a fee to do a loan modification on behalf of a homeowner must be licensed to do so with The Arizona Department of Financial Institutions. These are the fine folks that license mortgage brokers and mortgage bankers, they are the only ones that can negotiate a loan modification and get paid for it, other than attorney's, they are expempt from the MARS act, you see.

I would check your state in which you reside and make sure you have the legal facts and are properly licensed if required, before engaging a client for a fee to do a loan modfication. Nothing however, precludes you from helping out a client to do a loan modification pro bono.

Several things to consider Jesse.

As of January 1, 2011 it is illegal for agents who do not have the special certificate to be a loan officer, need to be NMLS certified.

Once again, this is the government "trying" to save potential clients, yet, they get them stuck in red tape.

It is completely idiotic that us agents that put together a short sale package and negotiate a successful short sale, that we cannot do loan modifications even though the needed documents is the SAME EXACT PAPERWORK, minus a listing agreement & purchase contract.

In the past I had been doing them as goodwill to clients, some were VERY appreciative and referred me to other clients and some I have had to tell them that they do not qualify, and then they let me do a short sale on their home.

Yes, we like and need to be paid, but your goodwill will comeback to you in tenfold if you show your clients that you are there to just help them.

P.S. one appreciative client gave me 100,000 of his airline miles as a big thank you!  That's enough to pay for two flights for a vacation to Hawaii.  Another client is a handyman, who has been helping me gratis & some of my listings as a way to repay my work with his.  What goes around, comes around... keep it going, pay it forward.

I would agree with the others. Stay away from doing loan modifications.  Provide them with all the information they need to do it themselves. If they can't get it done, then they can come to you for a short sale.


I do some loan mods too but I do them for free as only about 15% (nationwide) close and if they do not guess who gets the listing.  If they do work for the sellers guess who they love and refer all their friends to?    I don't worry about whether I am going to get paid or not I just do the best service I can and it all comes back.


There are many issues in agents performing loan mods. In most/many states, it would unlawful to do them.  States allow attorneys, mortgage brokers, certain debt advisers.  Most states do not allow agents to perform loan mods and certainly not for an advance fee.  In regard to banks paying for them, I am a foreclosure attorney for to pf the largest lenders in the US and they will not pay anyone to perform loan modification - short sales or "cash for keys" - yes, but not loan mods.  I strongly advise not getting into that area and refer to someone...



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