Posted by kathy/ca on 7/8/09 11:07am
Msg #294997

There has been a lot of posts regarding loan mods and it

has left me wondering exactly what it is we should avoid. I have dont several of them over the years where the terms of the loan has changed in some way but I suspect these are not what the discussions are about. Just what is it we need to be aware of when accepting offers to do loan modifications? OR, is it applications for L.M. that are considered "risky"? TIA!

Reply by CopperheadVA on 7/8/09 11:12am
Msg #294999

The loan modification agreements themselves are fine to accept jobs on. The ones I have done, they had to be overnighted to the notary because they are already signed by the lender and notarized on their end. I usually receive two identical original signed/notarized loan mod agreements, one for the borrower to sign, have notarized, and return, and the other for the borrower to keep as their copy.

The ones I stay away from are loan mod applications or attorney-client fee agreements.

Reply by CH2inCA on 7/8/09 11:15am
Msg #295000

I know the need for the current Loan Mods is sad. BUT I LOVE EM'
I've done several recently, and they are quick and easy. It may be that the borrower already has the documents but I've had several where I need to print four or five pages. Nice for an end of the day assignment.

Reply by CF on 7/8/09 11:16am
Msg #295001

It depends on your State Laws but, the companies to avoid are the ones asking for upfront fees. They send you as a "representative of the company" not a notary per say; and you collect modification application materials and checks from the home over. The check could be dated for that day and some may be post-dated.

Doing a Loan Mod from a reputable Title Company or Signing Service that contacts you for you to notarize a couple of pages...is "probably" legitimate. I say probably b/c I really can not attest to what is right for another person. For instance, I am doing 2 loan mods for BOA tomorrow from a reputable TC. They are 5 pages and 1 is notarized.

Reply by CF on 7/8/09 11:17am
Msg #295002

Sorry- should be Home Owner not over n/m

Reply by MistarellaFL on 7/8/09 11:57am
Msg #295007

Avoid loan mod applications

I'll accept loan mod signings only.
I've heard way too much negative feedback on the sharky loan mod app companies.

Reply by Lee/AR on 7/8/09 12:21pm
Msg #295009

Exactly, MistarellaFL. Loan Mods=OK Loan Mod APPL=not OK n/m

Reply by Larry/IL on 7/8/09 12:46pm
Msg #295012

Why are MOD apps not OK?

Just Curious, why are MOD apps not ok?

Reply by CopperheadVA on 7/8/09 1:05pm
Msg #295015

Re: Why are MOD apps not OK?

The reason is because there are too many brand new companies popping up, getting a loan mod app signed, collecting and cashing checks for thousands of dollars from the borrowers (who may be in financial trouble), and then the promised loan modification never materializes. However, the borrower's checks are already cashed. Additionally, these companies tend to have a history on this board of either not paying the notary for work performed, or bouncing checks to the notary.

It's just way too much hassle and potential liability for the notary to take these on. That's just my opinion - I will no longer do them. I did one for Spectra Signings before I realized what these were and the consequences of them (mine was an attorney-client retainer for loan mod services). I had to pry my payment out of Spectra and then the check bounced. 21st Century also does these loan mod applications and many notaries have reported on their questionable practices.

It's much safer for us notaries to simply steer clear of these types of appointments.

Reply by mwm143 on 7/8/09 5:07pm
Msg #295034

IF process is deemed fraudulent

The person collecting the paperwork and money is helping to facilitate a fraud, if any. Also, being a professional in your field and holding a state commission you will be held to a higher standard in the laws eyes. "Should have known better" rules kick in. In addition, in the State of NC there are some legal guidelines regarding post dated checks. Basically, my understanding is if you write a post dated check and the funds are not in the account at the time you write them then it's illegal. Illegal to write and illegal to accept. Again IF the funds aren't available. The recipient is not required by law to hold those checks either. They can cash all of them the day they receive them. In the end, it's just not worth it to me.

Reply by LKT/CA on 7/8/09 12:45pm
Msg #295011

**Be on the alert.**

Companies will solicit your notary services, naming the assignment anything BUT a "loan modification application". I make sure to get clarification by asking, "Am I collecting post dated checks, having the client fill out paperwork and not notarizing anything?"

The answer is always, YES, and my response is always, "Sorry, I do not take *those* types of assigments."

Reply by MW/VA on 7/8/09 1:56pm
Msg #295020

There are many legit companies doing loan mods. According to what we've been hearing over the past few months I expected there to be a whole lot more of them.
The "illegit" side of things are companies that are preying off of desperate people. These are the "loan mod application" folks--large upfront fees to supposedly assist in locating a company that will modify the loan. If you use the orange search button you will see there has been a lot of discussion.
There are some companies in particular that are under state & federal investigation. It is clear that they are a scam. Many of us have been concerned about not being parties to anything that is illegal, as some companies are using notaries as "their representatives" to take the app. I think we would be implicated if we got the people to sign the app. & collected the fees. My .02

Reply by MichiganAl on 7/8/09 3:50pm
Msg #295028

If an outside co. is collecting thousands of $$$ upfront...

(not the borrower's lender) with no assurances whatsoever, that's a big red flag. As soon as I know that I'm collecting a large check for nothing more than an application, I'll pass.