RealTown's RealTalk

I personally don't do loan modifications but am involved indirectly nearly every day being in the foreclosure business.

While in my state and many others, there are, in fact "free" sources of assistance, I am finding that these services vary all over the place in terms of success. One major source here recently claimed a success rate of 55%. While that is fairly good it still means that they were "unsuccessful" in 45% of the cases and those properties went on to foreclosure.

One of the problems I see is that there is no way these non-profit organizations can handle the load of work being dumped on them. In my metro area while there are several sources of help in the main counties some of the outlying areas have one or two counselors. The work load must be staggering

So my conclusion is that both for profit and non-profit avenues should be available. The consumer should be aware of both. The scam artists still need to weeded out, but if properly supervised the "for profit" loan mod companies have a place (IMHO).

And some are having very high success rates. Of course, unlike the non-profits who feel that they have to help everyone, the smart private companies are more picky and don't take just any case on.

What I like about Minnesota is that a loan originator license is required and any fees are still dependent on work performed. The companies I am monitoring even place the fees in an escrow account until work is completed.

FWIW

Steele V. Propp, Foreclosure Specialist

I'm sure this advice is born out of good intentions and my also reflect a fear that too many REALTORS� already fail to observe the caution against offering legal advice to clients. Some of the things I hear agents saying is scary in terms of the liability they expose themselves to by appearing to practice law without a license.

John

 

John E Cleek, Ph.D., e-PRO,

Certified Short-Sale Professional

Realtor� and Marketing Consultant

The CrownPlatinum Team

Crown Realty of Kansas

Miami County - Linn County - Johnson County

1005 W. Amity � Louisburg, KS 66053

Licensed in Kansas and Missouri

johncleek@crownplatinum.com

www.crownplatinum.com

Pho: 913-709-4423 � Fax: 913-837-2549

Finding the RIGHT REALTOR . . . Priceless!

On Apr 28, 2009, at 7:35 PM, Rossi wrote:

Having trouble viewing this message? Please visit: http://www.realtown.com/community/RealTalk/view/00DTFU

		RealTalk Powered by RealTown Communities
	Foreclosure RE: Loan Mitigation Services Rossi Educator Raleigh, NC, NC Apr 28, 2009 Paul regarding Mortgage Modification says, "many many banks are doing them FREE these days anyway. Yes Paul, they all are supposed to, but have you tried to talk with a mortgage lender/servicer regarding modification? Watch what happens to Congresswoman Maxine Waters when she tried on NightLine. The old, "If you have to pay, walk away", just doesn't cut it. Keep Smiling, Rossi, Certified e-PRO Trainer ROSSI Speaks, inc. Edutainer, Intuitionist, Thought Artist, Humorist, Motivator, Bon Vivant, & Lifestyle Mentor E Me mailto:Speak2Me@RossiSpeaks.com See Me http://RossiSpeaks.com Text Me Call Me 919-846-6333 / 800-722-7543 Author of top selling marketing book "Dog Eat Dog & Vice Versa: 9 Secrets To Put The Bite Into Your Marketing" Signed copies available from Rossi at http://DogEatDogAndViceVersa.com Or unsigned at http://Amazon.DogEatDogAndViceVersa.com

 

Many great comments on loan modifications above.

Hi --

I believe that beyond facing some financial hardship from the husband having his income reduced, they have some issues with their loan terms changing from what they were initially told as well as other issues so there may be some RESPA or TILA violations. I was not involved in their choice of lender and they have since told me that the person they worked with is no longer at the company. I think they feel that if they could use a loan modification service coupled with attorney sevices to help sort through their loan documents that it would be beneficial. They have told me that they have received offers in the mail from modification service companies and most seem to be based in California and they would feel more comforatble working with a local Colorado company.

There are free services available but there has not been a lot of good press as far as the free services modifying loans enough or even at all. Practically speaking, if they could pay what seems to be one house payment or less for a better outcome it might make sense. Most of us believe that you get what you pay for. I will not put myself in a position to give what could be construed as legal advice - I was only hoping to come up with a list of companies from recommendations that perhaps someone on this site had some good experience with and then suggest that they do their own due diligence.

Hi --

Thank you Peter - I had already sent them to the site - http://makinghomeaffordable.gov/ and
http://www.hud.gov/offices/hsg/sfh/hcc/fc/. I will forward yours as well - http://www.ourbroker.com/?p=2408 - good info - thank you!

From what I have read, the free government help has not provided much help. I believe their feeling is - as someone else here said - you get what you pay for. Of course the lenders will modify loans at no cost. It makes sense that the lender wants the homeowner to work with them directly - the lender's goal is to get as much money as possible from the homeowner. From what I have read, one of the reasons homeowners are defaulting even after the modifications is in part because the modifications did not help enough.

I am not sure that there is any press about attorney based loan mitigation companies - good or bad. I think from a practical viewpoint that most attorneys would not risk their license by doing something questionable. On the other hand, all of these modification companies that do not require licensing can set up their company on the internet, send mailers out to a notice of default list and if they screw up they can change the name of their company and keep on making money.

Since they feel strongly that there were RESPA and TILA violations, it probably makes sense for them to use an attorney based modification service.

Thanks for your input.

Karin