Has anyone ACTUALLY DONE a loan modification yet? (loan officer, interest rate, California)

[sideshow bob]

I have read people talking about doing them until the cows come home. What I am having a hard time finding is a home owner that has actually done a loan modification. Have any of you done one? Was it a good experience? Would you recommend others to do one?

[Daddys///M3]

I had my loan modified. My note was with Countrywide and they contacted me and voluntarily did it, so I have no direct experience with a third party modification negotiator. My experience was very simple and straight forward. They modified my note to a below market rate and charged me $500 bucks.

[olecapt]

I have been involved in a couple that did not fly. I am also skeptical there will be very many in the Panorama...I have yet to hear of anybody who was not an owner occupant getting a loan modified.

Got a couple of clients who would be great candidates but have substantial financial assets so I don't think so.

I would have the standard rule on people selling loan modification services. First I want three or four satisfied clients and then no money payed without success.

I am skeptical...but would love to hear of one that really produced.

Could be a nice business for loan officers if it flies.

[Daddys///M3]

Originally Posted by olecapt

I have been involved in a couple that did not fly. I am also skeptical there will be very many in the Panorama...I have yet to hear of anybody who was not an owner occupant getting a loan modified.

Got a couple of clients who would be great candidates but have substantial financial assets so I don't think so.

I would have the standard rule on people selling loan modification services. First I want three or four satisfied clients and then no money payed without success.

I am skeptical...but would love to hear of one that really produced.

Could be a nice business for loan officers if it flies.

The rules regarding LO's getting paid for loan modification services are still not clearly defined as far as I know, but have heard and read multiple times that it is illegal.

[LVKenny]

There are more laws that apply to Loan officers doing loan modifications than apply to the regular person. They are set up to protect the homeowner form lenders that will sell them a bad loan and then modify it for you. There are 3rd parties that have been doing this for a while but they are in California. It is new to Las Vegas so it might be hard to find someone with a lot of experience on it here in Las Vegas. But it is not illegal.

[olecapt]

That leaves me very uncomfortable.

We are getting into another of those situations where those who are qualified are not allowed and those who are not can...and do.

I know enough to take it on but even in my case I would have to work hard to keep the terms straight and evaluate them The actual comparisons of rates versus balances and such is tough duty unless you do it a lot.

The skills required for such a negotiation are that of a loan officer or an accountant. I would even be somewhat skeptical that those coming from the lenders side know the right stuff.

Sounds like an opportunity for the Las Vegas operators...maybe all those guys who used to be mortgage brokers.

[Daddys///M3]

Originally Posted by LVKenny

There are more laws that apply to Loan officers doing loan modifications than apply to the regular person. They are set up to protect the homeowner form lenders that will sell them a bad loan and then modify it for you. There are 3rd parties that have been doing this for a while but they are in California. It is new to Las Vegas so it might be hard to find someone with a lot of experience on it here in Las Vegas. But it is not illegal.

You would not happen to have a link to the laws would you? I am very interested in understanding the legalities of it from someone or something other than a mod company trying to recruit me. Thanks.

Originally Posted by olecapt

That leaves me very uncomfortable.

We are getting into another of those situations where those who are qualified are not allowed and those who are not can...and do.

I know enough to take it on but even in my case I would have to work hard to keep the terms straight and evaluate them The actual comparisons of rates versus balances and such is tough duty unless you do it a lot.

The skills required for such a negotiation are that of a loan officer or an accountant. I would even be somewhat skeptical that those coming from the lenders side know the right stuff.

Sounds like an opportunity for the Las Vegas operators...maybe all those guys who used to be mortgage brokers.

Perhaps some education and licensing requirements as well as some regulation of the compensation structure so loan mod affiliates (originators, processors) cannot upcharge a ridiculous amount to some homeowner.

[olecapt]

Originally Posted by Daddys///M3

You would not happen to have a link to the laws would you? I am very interested in understanding the legalities of it from someone or something other than a mod company trying to recruit me. Thanks.



Perhaps some education and licensing requirements as well as some regulation of the compensation structure so loan mod affiliates (originators, processors) cannot upcharge a ridiculous amount to some homeowner.

I checked out the one cited up thread. A group of RE Agents who worked the more commercial side as developers...or developer enablers. Generally very strong salesman who use lawyers and accountants for the real deal making.

I obviously can't tell for sure but there is nothing in their background that would make them good negotiators in a loan modification . They appear much more qualified to sell the deal to the owner than to help them negotiate with the bank.

I would think some level of education/experience required.

[Daddys///M3]

Originally Posted by olecapt

I checked out the one cited up thread. A group of RE Agents who worked the more commercial side as developers...or developer enablers. Generally very strong salesman who use lawyers and accountants for the real deal making.

I obviously can't tell for sure but there is nothing in their background that would make them good negotiators in a loan modification . They appear much more qualified to sell the deal to the owner than to help them negotiate with the bank.

I would think some level of education/experience required.

I would think that the only thing that you have to "sell" a distressed homeowner in a loan modification situation would be the charge to do the mod (including any referral fees which is why many happen to be quite expensive).

I did look up some of the legislation regarding the matter, and there is no specific verbiage pertaining to loan mod affiliates or their level of experience or compensation structure. Everything the law mentions is specifically addressed to foreclosure consultants, and as such may not (or may) apply to pre-NOD situations.

I do know that loan mod companies (the ones that actually process and negotiate, which are almost exclusively attorneys, not referral affiliates) must be licensed in the State of Nevada but nothing stating the referral affiliate has to meet requirements of any sort.

[Fighter 1]

Originally Posted by Daddys///M3

I had my loan modified. My note was with Countrywide and they contacted me and voluntarily did it, so I have no direct experience with a third party modification negotiator. My experience was very simple and straight forward. They modified my note to a below market rate and charged me $500 bucks.

OK they reduced the interest rate ??? did they reduce the amount of the actual loan or did they , are they still making you pay the full price of the ( Etc.$ 500.00 home that is now worth only $250.00)loan when you purchased it . Just extending the "Years" to pay for it ??