Quality of Life in Snohomish>Question Details

Natalee Thur…,  in Snohomish, WA

Loan Modifications?

Asked by Natalee Thurston, Snohomish, WA Mon Mar 23, 2009

I am seeing a lot of Realtors® and agents jumping on the Band Wagon and charging fees for Loan Modifications? Some are as high as $2500.00. WOW! I know that the greed of several, in this industry have contributed to where we are right now. ( Not just Realtors®,and Real Estate Agents. The lending industry without having the loan originators licensed, did not help ) I sure pray that we as Realtors® really work to give great service, advise and refer our clients to Attorneys when needed. Yes, we provide a service, though we also play a role of being Stewards to the people. Those of you that have many hats and play lender and agent....that would raise a Red Flag to me as a Consumer. Seems to me that would be a conflict of interest. If you want to Modify your Loan...please call your Lender directly, keep your $$$ in your pocket and if you did use a Realtor® or agent to purchase your home.

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I modified mine myself to 4.375% and not a temporary fix. [30 year jumbo and was 6.25%} This modification saved us $800.00, cost nothing to do and took 14 days from the phone call to signing papers. Was never have late on a payment . Hopefully this is an inspirational testimony. Caution...if they ask for money up from to modify your loan...RUN !
2 votes Thank Flag Link Mon Jun 8, 2009
I think Realtors are making a huge mistake charging so much. Especially because most of these modifications are just a temporary fix (3 TO 6 months). Who do you think they use after I've helped them so much & didn't rip them off. I do modifications all the time & they are usually very easy. The most difficult I've had are when the owner also owns other properties, that they are also about to loose. I've have gotten the most referrals from this than any advertisement ever.
1 vote Thank Flag Link Mon Jun 8, 2009
In Washington State a person doing a loan modification must be either licensed as a loan broker/originator, etc, by the Department of Financial Institutions, or an attorney.

http://www.dfi.wa.gov/consumers/education/home_loan/loan-mod…

This topic is covered in a couple of threads over at Rain City. Real estate agents providing this service are most likely engaged in the unauthorized practice of law, IMHO.
1 vote Thank Flag Link Mon Mar 23, 2009
I did call my lender for discovery purposes, to help provide information to my clients and ended up re-modifying my loan to a 4.375% rate and saving $800 an month. It took 15 minutes on the phone, faxed three items and signed the paperwork within 7 days of my phone call and it was very expensive...it cost me $ ZERO..:) I figured my time and that was priceless.
1 vote Thank Flag Link Mon Mar 23, 2009
If the loan you need to modify has PMI it's possible that they will negotiate with the lender for you at no charge. I needed to modify my loan and while I was able to negotiate for myself I was offered this service.
0 votes Thank Flag Link Thu Nov 26, 2009
In order to do loan modifications in Washington you must be licensed with the Department of Financial Institutions (DFI) as a loan origination or consumer loan company. DFI also warns that red flags include out of state companies, including attorneys and up front fees.
Consumers can do loan modifications themselves with some assistance. The consumer must have the available time to spend on the phone and some determination. One of the reasons consumers fail is they do not know what to expect. I have produced free reports, tracking tools and resources to help borrowers deal with their banks and set their expectations properly. This is all for FREE!
Loan modification companies likely have a higher success rate but the fees off set the gain and it is difficult to know what companies are legit or not. I am still looking for a good local company to refer to but have found none.
As far as agents jumping on the bandwagon, well why aren't they doing short sales? Negotiating with lenders in either case is very different from the deal making activities the industry is used referring to as negotiating. As long as they are following the DFI prescribed requirements and are willing to work hard I'm sure some will succeed. $2,500 is actually not bad as long as it is paid for an modification that is acceptable to the customer.
0 votes Thank Flag Link Tue Oct 13, 2009
I think the fee of $2500 is reasonable. Lenders charge you the same amount as if you would refinance or purchase a new home (origination fee).
0 votes Thank Flag Link Fri Oct 9, 2009
Most homeowners are denied loan modifications when they do it themselves, and very few are successfull. Most do not get the results a loan modification attorney can negotiate. Our loan modification attorneys have been in the business for years and are using the same negotiators. I don't think doing a loan modification on your own is for everyone, but i say hey why not try. We get calls all the time from homeowners that call our Attorney loan modification firm asking if they can still get a loan modification even though the bank just denied them. Most of the time our Attorney's can still get a loan modification for them. The fees are not that expensive if you compare to a refinance or purchase loan that usually costs a homeowner $5,000 plus if you add escrow, title, appraisal, etc. In addition, loan modifications are done because someone can't qualify for a refinance loan. In general, many of the laon modification terms turn out better then refinancing the home.
Web Reference: http://www.CallALMS.com
0 votes Thank Flag Link Sun Sep 13, 2009
David wrote: "All modification are not easy, 2,500 is a reasonable fee. Some people need help. Would you say they don't need a Realtor to sell their home also?"

I'd agree $2,500 is a reasonable fee, but I really don't see what a real estate agent brings to the table on doing a loan modification. It really seems totally outside the area of what a real estate agent does.

When we have clients that are buying property, we don't find them loans. We find them people that do that sort of work--loan originators.
0 votes Thank Flag Link Mon Jun 8, 2009
All modification are not easy, 2,500 is a reasonable fee. Some people need help. Would you say they don't need a Realtor to sell their home also?
0 votes Thank Flag Link Tue Mar 31, 2009
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