Posted by Pierces Notary Services on 2/23/10 7:18pm
Msg #323987

Loan Mod - Vital Signing

Has anyone done one of these? Seems it is an attorney's office and I am to collect a check. Not in my instructions from them but Mr. Borrower told me the whole story. Are these the mods I have been hearing about? This is the first time I have been contacted about one of these. In fact I closed the loan for these people 2-3 years ago and now the husband is out of work. Should I be leary of this one and give it back to them? I didn't have a chance to check them out because I was on my way home from a closing tonight.

Reply by Pierces Notary Services on 2/23/10 7:26pm
Msg #323988

Just got an email - it's The Ryan Law Firm.

Reply by LKT/CA on 2/23/10 8:23pm
Msg #323999

Use the orange search and type "loan mod application". Lots of info there.

Reply by MW/VA on 2/24/10 7:40am
Msg #324033

The legality test is whether or not you're collecting a large upfront check. There are laws in place in most states about collecting large upfront fees for the promise of service.

Reply by MistarellaFL on 2/24/10 9:18am
Msg #324040

My understanding about up-front fees

Is that a foreclosure rescue company cannot...but an attorney firm CAN.
Check PA's laws on this, Mary.

Reply by LKT/CA on 2/24/10 1:12pm
Msg #324095

Re: My understanding about up-front fees

This may be state specific but no one, including attorneys [firms] can charge upfront fees in California for a loan mod application, foreclosure rescue relief, or whatever other names it's called.

Reply by Linda_H/FL on 2/24/10 2:27pm
Msg #324117

That's what I heard...and I also heard that in some states

ANYONE doing loan mods, even attorneys, must be licensed loan originators or brokers...

Reply by Pierces Notary Services on 2/24/10 3:14pm
Msg #324127

Re: That's what I heard...and I also heard that in some states

Funny - I asked my boss who is an attorney and he said as long as I don't "explain" docs to them and they understand that I am a "courier" in a sense. I am not notarizing anything. They are signing an application and giving me docs ie tax returns, etc. and a voided check for an ACH form. I believe Mr. Borrower did say that they are charging them $3500 to do this though. I don't feel right about it and I am more inclined to give this one back to them. I feel bad for these people because I have closed 3 loans for them in the 6 years I have been doing this.

Reply by Doris_CO on 2/24/10 5:40pm
Msg #324158

Re: That's what I heard...and I also heard that in some states

This sounds like all the other loan mod applications - which can be scams. Check with the AG office of your state to determine if this type of transaction is legal in your state. As others have said, lots of states have passed laws regulating these type of transactions, especially the taking of up-front fees.

Reply by ChristineHI on 2/24/10 6:18pm
Msg #324168

I personally will not do loan modification applications. Vital Signings has only been calling me for these lately. I used to do loan signings with them and like them as a company, but I told them I won't do the mod applications.
It is my personal decision not to do this because collecting money up front does not make me feel comfortable. I just don't want to be a part of it.
If you go to the government website http://www.makinghomeaffordable.gov/ it also advises people not to work with any organization that asks for money upfront.
I think this is a personal decision on the part of the notary, though. It is the decision I have made.
Good luck.