Posted by John/CT on 3/25/09 3:54pm
Msg #282128

Loan Modification

Received a call from Spectra Signings in California asking me if I would "do a loan modification" tomorrow morning. When I asked, "What kind of modification"? I was told I'd be picking up a loan modification application. The word, "application" set off alarm bells in my mind, so I asked if this was one of those "loss mitigation" things, where I'd also collect a check as an advance payment. When told, "Yes, we do that sometimes.", I declined and thanked her for the call. Looking up Spectra on Signing Central afterwards, I this is how they described themselves, "Handles loan modification set-up paperwork" apparently for Echo Loans.

Reply by davidK/CA on 3/25/09 6:14pm
Msg #282140

Re: Loan Modification for CA

"If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer and ask you for payment in advance for their services. However, the broker must have you sign an agreement that tells you what services will be performed, when they will be performed and how much you must pay. The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee."

"Note: Licensed real estate brokers who provide loan modification or similar services without collecting fees in advance are not required to receive the Department of Real Estate’s permission as long as their services are fully completed before you pay them."

Source: http://www.dre.ca.gov/mlb_adv_fees.html

As of March 23, 2009, there is no "Spectra" or "Echo Loans" on the CA DRE's website listing of individual or corporate real estate brokers "Advance Fee Agreement Listing".

"The list is updated on a periodic basis and may not include those which have recently completed the review process."

Source: http://www.dre.ca.gov/mlb_adv_fees_list.html

Naturally, California licensed lawyers are exempt from the prohibition.

Reply by Marian_in_CA on 3/25/09 9:23pm
Msg #282157

And that's where a lot of them are hiding...

In CA, a lot of the ads you'll hear are from attorneys, because the DRE.. for some bizarre reason... exempts attorneys from their requirements. I find that ridiculous, because not all attorneys are the same. For all you know, the guy offering to help out may have specialized in adoption law or eldercare and probate -- which makes them no more qualified to handle real estate paperwork as a broker and any joker down the street.

You'll find not many actual borkers are doing this unless they are truly legit. The rest are lawyers trying to earn a quick buck, and shielded by the DRE's own rules.

Reply by LKT/CA on 3/26/09 12:35am
Msg #282166

Re: And that's where a lot of them are hiding...

<<<In CA, a lot of the ads you'll hear are from attorneys, because the DRE.. for some bizarre reason... exempts attorneys from their requirements.>>>

Attorneys answer to the state bar for real estate transactions. Attorneys are not exempt from the standard fiduciary responsibilities and that includes their handling of transactions dealing with real estate.

Reply by Marian_in_CA on 3/26/09 1:07pm
Msg #282212

Re: And that's where a lot of them are hiding...

Right, I know that.. but that doesn't mean that they are actually know what they're doing. At least a broker has an idea of real estate procedures. Not all lawyers do.

Kind of like how a orthopedic surgeon may have a fundamental idea of how to transplant a heart... they're both surgeons and have the same duties and obligations. But do you really want an orthopedic surgeon doing the job of a cardiac surgeon?

I've no problem with lawyers handling these things, I just wish they were lawyers who actually know something about real estate law rather than other specialties or general practice. That's what I'm trying to say.

Reply by CopperheadVA on 3/26/09 6:33am
Msg #282172

I'm the one who added Spectra Signing Services to Signing Central and the description is what I wrote. I completed a loan mod set-up for them a couple of weeks ago. When I received the initial call, the person identified himself as calling from Echo Loans. However, when the confirmation arrived, it was from Spectra Signing Services. After receiving e-mails from both entities, I noticed that the address was the same for both companies. Since at that point I wasn't sure who had hired me and who I should invoice, I inquired and was told that Spectra Signings had hired me.

The paperwork the borrower signed was an Attorney-Client fee agreement between the borrower and Financial Solutions Law Group in San Diego, and also an Authorization Form that authorized the law group and Echo Loans to "act on their behalf to resolve their mortgage problems."

The borrower did have to give a check for attorney fees, but the instructions were for it to be made payable to an escrow company.

I have not yet received payment for this job - I'll update this post when payment has been received and note how long it took.

Reply by CopperheadVA on 4/14/09 12:30pm
Msg #284887

My payment status with Spectra Signing Services is now just over 30 days from date of service with no payment. I e-mailed them and asked about payment status - was just told, "notary payments are mailed out the 25th of every month for the previous month’s signings" which was not listed on the confirmation.