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.
I am no sure what you consider broad, as I have done numerous modifications, and they seem to fall somewhere into the category I described above, at least here in California.
I agree that each scenario is different, but when I look at the big picture, it does not make economical sense to accept most of the modifications that the banks have been offering, as it is only in essence a way for the bank to legally rent the property back to the owner. Yet the homeowners have been thankful, for the decrease in monthly mortgage, yet they will have to pay the piper at some point.
Loan modifications, albeit can give some minor relief, they are creating mini "Pottersville's" across the U.S. which is only perpetuating the current problem we see.
For example, I did a free modification for a client in mid 2009, getting him 2% fixed for 5 years, before it steps up eventually to 4.5%. Last week he contacted me and wants to sell his home, and he is even more upside now than he was two and a half years ago.
As stated before, this problem will be around for quite some time in parts of our country, as it definitely will be here in California.
Thank you for your experience and viewpoint, I however have not had that experience, my modification have bee nsuccessful and my clients are happier, thank is the best I can do.
There are companies out there that hire Realtors to assist homeowners in packaging paperwork for loan modification that don't violate the law. It all depends based on state laws and statues that applies to debt adjuster companies.
For agents that rather not risk the efforts, you can always refer your clients to www.hud.gov or www.hopeforhomeowners.org for HUD approved agencies that offer free help in their area. It's probably best to give them them these websites, this way you are not steering homeowners to one particular agency.
Good information I am one of those and there are many other reputable one. The modification is the !st step to your HAFA approval.
It sure is, and the seller's really appreciate you helping them understand the options available to them.
Thanks for the reply.
Loan mods are a myth. :-)
However, the attempt is required for the homeowner to participate in short sales with some government loans and programs, FHA, HAFA,etc.
Charging a homeowner for doing a loan mod could be illegal in some places, and special disclosures are required by the federal government. Be very careful. I wouldnt go near them.
You can get a 3rd party authorization from your homeowner, and call their lender to see what they have, and if they have to do a loan mod first, in order to do a short sale, if they are elligible for a HAFA or other programs that pay the seller for a short sale.
The real problem with a loan mod is it ruins the home owner's credit. In order to do a loan mod you have to be behind on payments. However, they can do a short sale without being behind, which will leave their credit score relitively unscathed. Then they can go buy one of the great deals on the market today.. short sales and bank owned properties.
Good advise, in some cases one can negate your efforts. Check out the options, there are many reliable 3rd party companies that do a great job and get results. The modification process is the beginning of a blueprint for what options a homeowner may have regarding their particular situation.
On another note you do NOT have to be behind on your payments to apply for a loan modification, yes it is more difficult however with proper documentation and review of the situation, I have had it occur. If you want a HAFA short sale it is mandatory that you at least apply for the loan modification and then the short sales, speed through (comparability) with much less efforts on everyone part, full commission, and money back to seller for relocation costs.
Certified HAFA Professional