Who knows about loan modifications?

Rick Lee · Rick Lee's Garage

Calling Turbo6bar or Randy P. I'm looking into doing this as a side job, as I work from home, have some extra time and need some more income. The offer I have right now is for a commission of 35% of the fee I collect, typically 0.875-1.0% of the balance being modified. So, if it were a $200k loan with a 1% feee, I'd get $700. This is through a law firm/settlement company in Long Island. I've seen countless ads for such places on Craigslist, both in the employment and services sections. I think it's a booming business and Phoenix is a great area for it. There are several distressed home sales on my street alone. I'm not wired into the real estate or mortgage biz in Phoenix. But I figure I can do some advertising and generate a few leads of my own. Does anyone here know anyone who has either had their own mortgage modified or anyone who doing this for a job now?

Eric Coffey · 10-05-2008, 03:18 PM

Do you have to pay any fees up front? If so, I would say run away. The problem is that "mortgage renegotiation" is a futile effort 99% of the time. The remaining 1% is only successful for people behind on their payments. If you want to renegotiate your loan, but are not late on your payments, the banks will tell you to pound sand (even if your ARM is about to recast). The only cases I've heard of it working are when someone is behind on the loan and in pre-foreclosure. Then, the bank will sometimes (read: rarely) add that past-due amount on to the remaining balance of the loan, while setting the next payment due for the following month. Not really a "renegotiation" per se, but maybe a solution for someone who hit a rough patch, but is now back on track.

Rick Lee · Rick Lee's Garage

I don't have to pay anything to do this job. It's a 1099 thing. Another buddy of mine who's been researching this for a while says it can be lucrative if you can get leads. I've heard from him and this place I'm looking at that mortgage companies won't mod. a loan for a borrower, but will talk with a lawyer about it. Sort of like in traffic court where the prosecutor won't talk to a defendant, but will talk to his lawyer. I've even read of some stories here on Pelican where someone's friend was so far behind on their mortgage, that the $10-15k they did have in cash wasn't gonna fix the problem, so they spent it on other stuff. If a mortgage company knows it's either mod. the loan or foreclose on it and the borrower is certainly able to handle the modified payments, then it would make sense to do the mod. Anyway, I emailed the guy I'm talking with about this and said I wanted to sit in on a few of his calls and look over some of the paperwork on closed deals he's done.

Eric Coffey · 10-05-2008, 03:56 PM

Quote:

Originally Posted by Rick Lee

Anyway, I emailed the guy I'm talking with about this and said I wanted to sit in on a few of his calls and look over some of the paperwork on closed deals he's done.

That sounds like a smart approach. If he gives you the cold shoulder, then you know something is rotten in Denmark. You might want to ask if they have a website as well. If they don't, or if it looks like a 5-year old made it, there's your sign.

Rick Lee · Rick Lee's Garage

This is their site.

http://nationalhomemitigation.com/

juan ruiz · juan ruiz's Garage

Interesting, I try to do this with two banks and they say no, I then try two other company's and after they "Pre approve us" they say no, so I'm a bit skeptical about this ? the company I look into came back with a D from the BBB,

To be able to used those services theres a $600 fee then one month of rent in our case around 3k.

Rick Lee · Rick Lee's Garage

Juan, if you're renting, you have no loan to modify.

I wouldn't mistake a loan mod. company for a guaranteed way out of your mortgage mess, if that's what you have on your hands. But the one I linked to says they refund your money if they pre-qual you and can't get it done. I think they keep some nominal fee, but it's just to cover their costs.

juan ruiz · juan ruiz's Garage

Yes all of them will offer 1/2 money back, and that is what got me thinking that is the actual business, Imagine getting 1/2 of xx amount for doing nothing, in short time you can rack some serious cash.

The one legit scam that comes to mind is on the sport compact scene they have this company's that offer you "sponsorship" to be able to "Qualify" you must pay a fee of $89.99 for "Pre Qualifications" non refundable, out of 1,000 applications they "select" one, so now the business is legit since they did offer the "sponsorship" if you take $89.99x1,000 that is $89.990.00 for that you pay a small "finders fee" of x % for the people you reel in, you don't reel anyone in you make no money, is all in commissions, you get 100 people working on this and imagine how much $ can be made.............. All 100% legal

that is why Im looking deep into this

Rick Lee · Rick Lee's Garage

This is where I started reading about it beyond hearing just from my friend about it.

http://www.city-data.com/forum/mortgages/

I PM'ed a guy here and he called me last week to discuss how it all works. I don't need a loan mod. But I wouldn't mind doing it as a part time thing from home. If you know any settlement attorneys, that's whom you should ask. They'd be in the best position to help you and you can definitely check to see if they're legit. I think the place I linked to refunds something like 90% of your fee, which is .875-1.0% of the loan amount being modified. They can't all be scams or we'd have heard about it on the news by now.

jyl · jyl's Garage

What happened - you were looking into doing the loan modif business and now you are looking into doing the organ smuggling thing?

You have been "looking into" some pretty odd stuff lately - no wonder you want to go armed everywhere -

j/k

juan ruiz · juan ruiz's Garage

Have you heard about the "Home based business, "Mystery Shopper"

steve911 · steve911's Garage

Rick--
One of the problems with the whole mortgage mess is the fact tons of the problem loans have been securitized -- sold, packaged and repackaged (read Mortgage Backed Securities (MBS) and Collaterized Debt Obligations (CLO).

Identifying who ultimately controls the loan is the biggest issue as to whether or not to the loan can be modified loan, so you have to be careful that whomever you are dealing with actually can agree to the terms that you negotiate with the borrower.

I believe that's why efforts to negotiate deals to renegotiate individual mortgages have, to date, fallen flat.