RealTown's RealTalk

Happy Holidays to All

Posted at Real Estate Consulting by Jack Harper on Dec 25, 2008 1:01:10 PM

This might be filed under the "is he nuts?" category, but my wife and partner, Sue, and I have had an epiphany of sorts. We live in Brentwood CA (no, not the suburb of LA where OJ lived, but the one in No. CA). Our town is one of the worst hit areas in the country for foreclosures. On my street alone (not a bad neighborhood, on the golf course, great views) we have seen seven foreclosures so far out of only 23 homes!

These homes are being lost by folks who were caught up in the loan debacle - unable to refinance to a better loan and lender not willing to easily modify to a lower rate to allow people stay in their homes. The homes are mostly worth less right now than the owners paid for and likely owe on them. So, sadly, they need to leave their homes to the lenders.

Many of these can be saved if the borrowers only understand the ins and outs of the modification process. Many will not but some can be saved if these people are guided through the process by someone who knows the right buttons to push or the right people to call and understands how to "package" the modification for best results.

This Christmas morning, we happened to be walking the neighborhood, when it hit me. I need to help. No ulterior motive, I just need to help. I also have a fresh recall of the pro bono discussion recently here on RT. Two plus two equals four.

I have decided to offer my services to these folks here who are possibly facing foreclosure, as long as ths is regarding their HOME - not an investment property. And, my services will be offered for no charge. I will be contacting the local papers and the Internet sites to promote this, but I am totally committed. People need help staying in their homes. Maybe I can help.

Yes, this goes against the grain and I might be disliked by some of my peers for this, but it does not matter in the least.

I know that this has little to do with the group, except it is consulting for a $0.00 fee. I just want to share it in the hope that there are others out there who might be in a position similar to mine in that we can actually work for free on purpose.

Merry Christmas, Happy Holiday,

JackH

....I have decided to offer my services to these folks here who are possibly facing foreclosure, as long as this is regarding their HOME - not an investment property. And, my services will be offered for no charge. I will be contacting the local papers and the Internet sites to promote this, but I am totally committed. People need help staying in their homes. Maybe I can help...

WOW! And that does not even come close to what I felt after reading your plan of action for your neighbors. This made me feel full of hope, that in a profession often considered by many as self serving (and that's a sad other story) here comes this shining angel of example!

Thought I am not knowledgeable in the short sale this is an area i would like to learn about.

I am passionate about saving the planet, and am GREEN. We have to work toward saving the planet, people's homes, and health. All of which are related.

Your, John, are an inspiration. I shall read your other posts today in the hopes of becoming enlightened as to how my husband and I might help in our small, college town community.

Knowledge is power and you are handing the power back to the home owners.

May HIS light shine upon you and continue to shine through you.

Judy (Irish) Wagner

GREEN, RDH, e-PRO, Ninja REALTOR®
www.Home2Mtn.com
Weichert REALTORS, Weber-Hodges Group

The Planet will save itself. We need to save each other.

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Andi Durbin said:

John indicated he wanted to help homeowners in his area stay in their homes rather than being foreclosed upon.

Unfortunately, in Colorado the DRE has issued a new rule as follows:

"an individual negotiating a loan modification must be licensed as a mortgage broker"

Jack says:

Although my legal name is John, I have been Jack all my life ;-)

Thanks Andi. I am well aware that each state has its own regulations covering what you can and cannot do with your license. I am also aware that you need to work directly with your managing broker/owner to be sure that you are not crossing boundaries that they might have set up. But with all of that said, there will always be a way to help. Even if all you do is give the homeowner a list of Internet sites where they can get the information to help themselves. Most homeowners don't even have that much.

Whatever we can do to help, within legal limits and within company guidelines, is more than doing nothing.

I do stress, however, that this is something I have elected to do. I do not suggest it for anyone else, although I have communicated with many this weekend who are getting involved on their own.
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I think you will find that there is another rule in CO and other states trying to come to grips with the unethical mortgage practitioners who are now showing up offering mortgage modification services..."no laws can be passed or rules enacted that restrict a person's access to legal advice." I am not sure excatly where this is written or how it is worded...but it definitely makes sense. And any restriction on an attorney representing a client in negotiating a setlement of a dispute (such as a mortgage modification instead of a nasty lawsuit) would clearly be in opposition to the right of an individual to secure effective legal representation.

We have already seen how well the lenders represent the needs of the borrowres with a reported 58% of the people whose mortgages were modifide thru the Hope Now Aliance being back in defult 6 months after being "helped" by the lenders. Sounds like CO is trying to feed the lambs to the lions...instad of addressing the needs of the people in trouble with their mortgages.

Steve Ervin
24SevenMarketing Solutions, LLC
www.24SevenMarketing.com
steve@24SevenMarketing.com
727-320-5436 Direct
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Editor's Note
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Hi --

Andi writes and says that in Colorado the DRE has issued a new rule as follows:

"an individual negotiating a loan modification must be licensed as a mortgage broker"

Please check with a Colorado attorney. It may be that this rule does not apply in the instance of someone who does not charge a fee.

Jack has a great idea, and I hope it spreads.

All the best,


Peter G. Miller
OurBroker.com

I just wanted to clarify for those in Colorado.

Andi Durbin said:

Unfortunately, in Colorado the DRE has issued a new rule as follows:

"an individual negotiating a loan modification must be licensed as a mortgage broker"

The DRE in Colorado is clarifying this to say that real estate brokers (single licensing state) who are assisting sellers in a foreclosure or short sale are not required to be licensed as mortgage brokers so long as they are helping the seller to dispose of the property.

So Andi, go ahead and help homeowners out! Remember that if you are going to assist people you will want to include that in your business plan so that you can measure the amount of time you have available to spend on it, and the success you are having with it.

I just wanted to clarify for those in Colorado.

Andi Durbin said:

Unfortunately, in Colorado the DRE has issued a new rule as follows:

"an individual negotiating a loan modification must be licensed as a mortgage broker"

The DRE in Colorado is clarifying this to say that real estate brokers (single licensing state) who are assisting sellers in a foreclosure or short sale are not required to be licensed as mortgage brokers so long as they are helping the seller to dispose of the property.

So Andi, go ahead and help homeowners out! Remember that if you are going to assist people you will want to include that in your business plan so that you can measure the amount of time you have available to spend on it, and the success you are having with it.