Foreclosure in San Francisco>Question Details

Kenny Tan, Real Estate Pro in Diamond Bar, CA

Which professionals do most borrowers go to when they need help with loan modifications?

Asked by Kenny Tan, Diamond Bar, CA Fri Nov 26, 2010

The foreclosure problems won't be over for a few more years.

I'm looking for what you might've heard from homowners who might've used the services of professionals, attorneys, loan modification consultants, mortgage brokers. How do they charge for their services? Do they take upfront deposit (the FTC recently issued a rulijng that prohibits that)? Are the borrowers getting more leverage when they hired one professional over another?Thank you in advance for your comments on this.

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J Mario Preza’s answer
This is a sub-industry in the real estate arena brought on by the dramatic changes in either the real estate market or the stifled economy as a whole, however, typically such metamorphosis in legitimate businesses are preceded by a few shady one.

Early on there were numerous confidence schemes, e.g., a straw buyer, selling the house to another buyer and having that buyer sell it back in the future, promising fixing the loan via other creative activities and charging hefty fees with no assurances of performance, etc... It isn't long before the regulators start hearing about the abuses and then come up with new rules and regulations. Does that sound about right?

Now to the question at hand, "...How do they charge for their services..." They, in this case, refers to the modification companies. I have not been witness to this (yet), but I have had several clients go through the routine with some of the modification companies, and what they're forced to do is charge only after they've completed WORK, e.g., compiled the paperwork, submitted the file for review, logged so many hours of follow up, etc., and they are supposed to "bill" for the same with some form of accounting/documentation.
0 votes Thank Flag Link Thu Mar 31, 2011
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