Posted by Gary_CA on 4/24/09 11:20am
Msg #286155

Loan Mod? No thanks.

Got a call for a loan mod job the other day. I forget the company name, but it was NOT one of the infamous ones. Sounded like nice folks.

But as we were talking the lightbulb went on and I just said I've decided not to do those jobs. (At the beginning she hadn't told me it was a loan mod.)

My reasons, FWIW

1. I've done one of these, or was it two?, they didn't sign they changed their mind about the fees.
2. Some of these companies are frauds and being investigated.
3. One colleague has been sued.
4. They offer $50-$60 which is all I'd offer for a small no notarization package, but still, it's low for me considering I have to make a specific appointment (I can get $50-60 doing drivebys on my schedule)

Risk vs Benefit just doesn't workout. Some may be great, I know of good loan mod companies and I've worked on my own clients loans, there is definitely valuable service given if it's done right--endless hours on the phone. But I risk getting my name soiled, not getting paid and/or being deposed. For fifty bucks.

So, I just made me a new policy, no loan mod packages.

Reply by Les_CO on 4/24/09 11:33am
Msg #286160

Risk vs Reward? Potental lability? To say nothing about professional ethics.......
SMART MOVE!

Reply by Lee/AR on 4/24/09 12:10pm
Msg #286176

Re: Loan Mod? Or Loan Mod Application? Big Difference! n/m

Reply by dickb/wi on 4/24/09 12:31pm
Msg #286180

that is correct lee....iv'e don loan mods for the lender....

there fast and easy.....no apps....no fees.....just a lender modifying there current loan..

Reply by Tom_AZ on 4/24/09 12:40pm
Msg #286184

I must be missing something here. I have done several Loan Mod and have not sensed a problem. The terms of the original loan have been changed with a lower interest rate. Only two docs needed to be notariazed with about a dozen papers to look at. The signing takes about 15 minutes. Based on an hourly fee, nothing to be ashamed

Reply by Gary_CA on 4/24/09 12:45pm
Msg #286185

Absolutely correct, I meant loan mod app & collection of fee n/m

Reply by MW/VA on 4/24/09 12:55pm
Msg #286190

We need to keep in mind that reputable lenders are doing loan mods, and we should be seeing a lot more of those. I realize you were talking about loan mod apps, for which some of these companies are charging large upfront fees w/no guarantee of a loan.