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gzajdel23
174 Posts |
 Posted - 06/06/2008 : 10:44:38 PM
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| I do not have a clue what should be reasonable charge for doing loan mofification, short refi,forbearance. Any idea, suggestions? |
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Hustler12
1293 Posts |
Posted - 06/07/2008 : 07:02:53 AM
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| Loan Mod should be 1% of loan amount or 1 mortgage payment. Whichever is higher. |
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mitchmaxx
904 Posts |
Posted - 06/07/2008 : 07:30:47 AM
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| We charge 2995.00 one time fee, TOTAL... that 1-2 percent is going the way of the dodo bird... |
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gzajdel23
174 Posts |
Posted - 06/07/2008 : 07:42:08 AM
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| 1% it's very reasonable. |
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homebroker@sbcgl
3538 Posts |
Posted - 06/07/2008 : 07:46:47 AM
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| Be careful in some states there are local foreclosure laws that you cannot take money up front, know your laws before you do them. I had a broker friend whom just got arrested for doing loan modifications, CA law does not allow anyone to collect upfront fees once the NOD is filed. Know the local laws before you modify. |
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monarchdad
1811 Posts |
Posted - 06/07/2008 : 11:10:38 AM
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quote:
Originally posted by homebroker@sbcglobal.net
Be careful in some states there are local foreclosure laws that you cannot take money up front, know your laws before you do them. I had a broker friend whom just got arrested for doing loan modifications, CA law does not allow anyone to collect upfront fees once the NOD is filed. Know the local laws before you modify.
Yes. once the NOD is filed you are no longer performing a loan modification service you are doing a foreclosure avoidance service and cannot charge an upfort fee.
The guys (and ladies) in Sacramento are total morons. |
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Coronasteve
1509 Posts |
Posted - 06/07/2008 : 2:28:30 PM
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Not quite correct.
The California Foreclosure Consultant Act allows attorneys to collect their fees upfront.
And 1% of the loan amount is WAY out of line. $5K for a $500,000 loan?
Our fees are $2,995.00 for that size loan and we still make plenty of money on that fee.
quote:
Originally posted by homebroker@sbcglobal.net
Be careful in some states there are local foreclosure laws that you cannot take money up front, know your laws before you do them. I had a broker friend whom just got arrested for doing loan modifications, CA law does not allow anyone to collect upfront fees once the NOD is filed. Know the local laws before you modify.
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gzajdel23
174 Posts |
Posted - 06/07/2008 : 3:29:48 PM
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| Ok. That's Cali but how about ILLINOIS? Anyone doing this in ILLINOIS and would like to share Your idea about the charge and foreclosure law. |
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scotl47
92 Posts |
Posted - 06/07/2008 : 4:03:24 PM
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| $995-$1400. The hard costs are not that great. I try and save all the homes even if I only make a few bucks. |
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JEMORTGAGE
338 Posts |
Posted - 06/08/2008 : 07:37:45 AM
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| do you charge before or is there a closing? |
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homebroker@sbcgl
3538 Posts |
Posted - 06/08/2008 : 07:48:18 AM
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Yes attorney's are excluded, just about everyone else be careful.
quote:
Originally posted by Coronasteve
Not quite correct.
The California Foreclosure Consultant Act allows attorneys to collect their fees upfront.
And 1% of the loan amount is WAY out of line. $5K for a $500,000 loan?
Our fees are $2,995.00 for that size loan and we still make plenty of money on that fee.
quote:
Originally posted by homebroker@sbcglobal.net
Be careful in some states there are local foreclosure laws that you cannot take money up front, know your laws before you do them. I had a broker friend whom just got arrested for doing loan modifications, CA law does not allow anyone to collect upfront fees once the NOD is filed. Know the local laws before you modify.
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johncm
470 Posts |
Posted - 06/08/2008 : 08:07:00 AM
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quote:
Originally posted by monarchdad
quote:
Originally posted by homebroker@sbcglobal.net
Be careful in some states there are local foreclosure laws that you cannot take money up front, know your laws before you do them. I had a broker friend whom just got arrested for doing loan modifications, CA law does not allow anyone to collect upfront fees once the NOD is filed. Know the local laws before you modify.
Yes. once the NOD is filed you are no longer performing a loan modification service you are doing a foreclosure avoidance service and cannot charge an upfort fee.
The guys (and ladies) in Sacramento are total morons.
Exactly why are the guys (ladies) in Sacramento total morons? |
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Coronasteve
1509 Posts |
Posted - 06/08/2008 : 09:21:53 AM
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Just curious, why would you tell everyone else to "be careful"?
Be careful as in don't get caught, or as in know the law in the state you are operating in.
The California deal is simple. If a homeowner is in foreclosure, (NOD or beyond), the attorney is the only entity that can charge upfront before services are rendered and results are achieved.
I can tell you that the District Attorneys of Riverside County, San Bernardino County, El Centro County and San Diego County have investigators assigned to find, shut down & prosecute individuals or companies operating outside the law. They will respond within 1 week to credible information that there is unlawful activity going on.
This is a major deal in the SoCal. Be advised.
quote:
Originally posted by homebroker@sbcglobal.net
Yes attorney's are excluded, just about everyone else be careful.
quote:
Originally posted by Coronasteve
Not quite correct.
The California Foreclosure Consultant Act allows attorneys to collect their fees upfront.
And 1% of the loan amount is WAY out of line. $5K for a $500,000 loan?
Our fees are $2,995.00 for that size loan and we still make plenty of money on that fee.
quote:
Originally posted by homebroker@sbcglobal.net
Be careful in some states there are local foreclosure laws that you cannot take money up front, know your laws before you do them. I had a broker friend whom just got arrested for doing loan modifications, CA law does not allow anyone to collect upfront fees once the NOD is filed. Know the local laws before you modify.
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fgsinv
27 Posts |
Posted - 06/09/2008 : 07:52:19 AM
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quote:
Originally posted by scotl47
$995-$1400. The hard costs are not that great. I try and save all the homes even if I only make a few bucks.
Scot147 I am also in Florida and I would like to talk with you concerning a fee question. Would you give me a call at (561) 716-7221
Thanks
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sdbroker
2 Posts |
Posted - 06/30/2008 : 06:55:06 AM
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| I am a real estate broker in san diego and I have clients and their friends calling me daily asking for help modifying their current loans. Obviously, I want to refer to a legitimate law firm who has a team working on mods, ss, and foreclosures and who charges fairly. I would really appreciate your thoughts on who you would recommend in California. Thanks |
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ppulatie
2259 Posts |
Posted - 06/30/2008 : 07:19:39 AM
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stan, Scot,
I have a great guy in FL who can probably help you. He too is engaged in the legal aspects of this work, doing audits, expert witness, filing complaints with local DRE's and DA.
Email for details. ppulatie@pacbell.net |
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ppulatie
2259 Posts |
Posted - 06/30/2008 : 07:21:17 AM
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Prices vary for loan mods with the company and the target market of that company.
My niche is trying to help those who cannot afford the higher cost mods and would be left out in the cold otherwise.
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dc62
279 Posts |
Posted - 06/30/2008 : 07:26:16 AM
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| This is somewhat off topic, and maybe I've missed the boat already, but what is involved in the loan modification process? What specifically is that you do for your 1% or $2995 or whatever the fee is? How does one get involved in this end of the business? |
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ppulatie
2259 Posts |
Posted - 06/30/2008 : 07:34:05 AM
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There are plenty of threads posted about the mod process. You might want to check them out. But here is reality
LO's think that mods are the new get rich scheme. It is not. The money in mods is nowhere what people believe it to be. And they can be time consuming, if not done the right way.
You must be properly aligned with the right attorney, and understand what is needed to do the job effectively. And even then, you will experience declines, delays and anything else you can imagine.
Don't just try to jump into it. Learn it very carefully, and then decide if it is for you. The mentality is totally different.
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Coronasteve
1509 Posts |
Posted - 06/30/2008 : 07:44:13 AM
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Great, another one of my "crony" friends bring the voice of reason. Thanks Pat.
How ya doing this AM Pat?
quote:
Originally posted by ppulatie
There are plenty of threads posted about the mod process. You might want to check them out. But here is reality
LO's think that mods are the new get rich scheme. It is not. The money in mods is nowhere what people believe it to be. And they can be time consuming, if not done the right way.
You must be properly aligned with the right attorney, and understand what is needed to do the job effectively. And even then, you will experience declines, delays and anything else you can imagine.
Don't just try to jump into it. Learn it very carefully, and then decide if it is for you. The mentality is totally different.
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rtrefflich
3414 Posts |
Posted - 06/30/2008 : 07:59:36 AM
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If you are trying to do mods to make a quick buck it is not happening. If you are looking for a get rich quick or an easier way to make money that's not originating, go find another profession.
quote:
Originally posted by ppulatie
There are plenty of threads posted about the mod process. You might want to check them out. But here is reality
LO's think that mods are the new get rich scheme. It is not. The money in mods is nowhere what people believe it to be. And they can be time consuming, if not done the right way.
You must be properly aligned with the right attorney, and understand what is needed to do the job effectively. And even then, you will experience declines, delays and anything else you can imagine.
Don't just try to jump into it. Learn it very carefully, and then decide if it is for you. The mentality is totally different.
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JEMORTGAGE
338 Posts |
Posted - 06/30/2008 : 08:08:17 AM
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| Im actually interested in doing loan modifications full time, Im in south florida and this looks like a great market for those...ive seen a few people do them and it seems like something i would like to learn more of...where would you go for training on this |
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rick2374
6 Posts |
Posted - 08/29/2008 : 10:21:20 AM
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It has Taken us 6 months but I have finally got the DRE to aproved my advanced fee contract for Loan Mods.
You have to be very carefull the DRE and the district Attorney are actively looking for people taking advanced fees with out being an attorney or broker with a approved contract by the DRE. If they have a NOD filed it has to be done by Attorneys.
you can get arrested and will lose your License.
FYI
The market seems to be 1995.00 to 3995.00 our mods are done by seasoned bankers with attorneys avaliable.
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success07
639 Posts |
Posted - 08/29/2008 : 12:27:45 PM
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| I charge 2500 for my clients across the board. If they cant afford it I do offer a payment plan. They wont sign any documents unless all fees are paid before signing. |
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jstar
721 Posts |
Posted - 08/29/2008 : 1:15:02 PM
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quote:
Originally posted by sdbroker
I am a real estate broker in san diego and I have clients and their friends calling me daily asking for help modifying their current loans. Obviously, I want to refer to a legitimate law firm who has a team working on mods, ss, and foreclosures and who charges fairly. I would really appreciate your thoughts on who you would recommend in California. Thanks
American Mortgage Modification |
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crankyusi
660 Posts |
Posted - 08/29/2008 : 7:06:44 PM
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quote:
Originally posted by rick2374
It has Taken us 6 months but I have finally got the DRE to aproved my advanced fee contract for Loan Mods. You have to be very carefull the DRE and the district Attorney are actively looking for people taking advanced fees with out being an attorney or broker with a approved contract by the DRE. If they have a NOD filed it has to be done by Attorneys.
you can get arrested and will lose your License. FYI The market seems to be 1995.00 to 3995.00 our mods are done by seasoned bankers with attorneys avaliable.
Which company are you with? |
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HMDApproved
694 Posts |
Posted - 08/29/2008 : 7:12:24 PM
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quote:
Originally posted by gzajdel23
I do not have a clue what should be reasonable charge for doing loan mofification, short refi,forbearance. Any idea, suggestions?
I just did one for a client with a 900k loan amt (2 loans). I charged 1 payment of 6900.00. Papers came today and wamu went down from 9.75 to 5.00 on the first and 11.75 to 8.0 on the second. Saving the client about 2k per month and they added the past due amt of 42k to the principal of the loan.
The guy wanted to kiss me. (I declined ofcourse) but one payment or 1 point is more than fair.
FYI to all, Wamu did the mod in 2 weeks. |
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rick2374
6 Posts |
Posted - 08/29/2008 : 7:16:48 PM
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quote:
Originally posted by crankyusi
quote:
Originally posted by rick2374
It has Taken us 6 months but I have finally got the DRE to aproved my advanced fee contract for Loan Mods. You have to be very carefull the DRE and the district Attorney are actively looking for people taking advanced fees with out being an attorney or broker with a approved contract by the DRE. If they have a NOD filed it has to be done by Attorneys.
you can get arrested and will lose your License. FYI The market seems to be 1995.00 to 3995.00 our mods are done by seasoned bankers with attorneys avaliable.
Which company are you with?
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gzajdel23
174 Posts |
Posted - 08/29/2008 : 7:36:57 PM
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| I have decided to charge 500 $, ONLY when the loan mod is being approved . That s what I charge now. I do not want my clients to be ripped off by me. |
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crankyusi
660 Posts |
Posted - 08/29/2008 : 8:18:55 PM
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quote:
Originally posted by rick2374
It has Taken us 6 months but I have finally got the DRE to aproved my advanced fee contract for Loan Mods.
Rick, I think you replied to my question about which company you're with, but I think your response didn't appear. Could you try again (unless I missed it altogether).
Thanks. |
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samurai
692 Posts |
Posted - 08/29/2008 : 8:25:58 PM
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quote:
I have decided to charge 500 $, ONLY when the loan mod is being approved . That s what I charge now. I do not want my clients to be ripped off by me.
I am curious how you will collect this fee if they can't or don't come up with it once the loan has been modified. You can't hold back the modification once it has been approved. |
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crankyusi
660 Posts |
Posted - 08/29/2008 : 8:37:09 PM
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quote:
Originally posted by samurai
I am curious how you will collect this fee if they can't or don't come up with it once the loan has been modified. You can't hold back the modification once it has been approved.
I can't speak for gzajdel23 but one party I know doesn't collect in advance, has them sign a basic mortgage broker fee agreement indicating that if lender delivers an acceptable offer, client owes him the money. If client refuses to pay, lis pendens is filed in one day. He's very good, has bought servicing portfolios which are managed by the DRE due to prior servicers going bellyup. |
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samurai
692 Posts |
Posted - 08/29/2008 : 8:43:01 PM
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| I think this is a good model and it will allow you to collect a higher fee to make up for the cases that were not successful. So instead of $2500 upfront you can charge $3500 upon completion. |
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rick2374
6 Posts |
Posted - 08/29/2008 : 9:19:52 PM
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quote:
Originally posted by crankyusi
quote:
Originally posted by rick2374
It has Taken us 6 months but I have finally got the DRE to aproved my advanced fee contract for Loan Mods.
Rick, I think you replied to my question about which company you're with, but I think your response didn't appear. Could you try again (unless I missed it altogether).
Thanks.
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rick2374
6 Posts |
Posted - 08/29/2008 : 9:21:46 PM
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quote:
Originally posted by crankyusi
[quote]Originally posted by rick2374
It has Taken us 6 months but I have finally got the DRE to aproved my advanced fee contract for Loan Mods.
Rick, I think you replied to my question about which company you're with, but I think your response didn't appear. Could you try again (unless I missed it altogether).
Thanks.
One Source Real Estate and Financial Services Inc. |
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sdbroker
2 Posts |
Posted - 08/30/2008 : 08:20:05 AM
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This is a very effective model - but "acceptable" to who?? That's the sticky part, right?
quote:
Originally posted by crankyusi
quote:
Originally posted by samurai
I am curious how you will collect this fee if they can't or don't come up with it once the loan has been modified. You can't hold back the modification once it has been approved.
I can't speak for gzajdel23 but one party I know doesn't collect in advance, has them sign a basic mortgage broker fee agreement indicating that if lender delivers an acceptable offer, client owes him the money. If client refuses to pay, lis pendens is filed in one day. He's very good, has bought servicing portfolios which are managed by the DRE due to prior servicers going bellyup.
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FirstNLM
3 Posts |
Posted - 08/30/2008 : 10:09:15 AM
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| We Charge $995 for Short Sales and Loan modifications. We don't charge the client anything until we get a solution to there current problem. If its a Short Sale we try to get the lender to pay our $995 fee and if the lender doesn't pay the fee and most of them are not, then the client will pay the $995 or if there is a realtor involved the fee will come out of their commission if they agree to that and most of them do as it’s a small price to pay to not have to process the short sale. If we are doing a loan mod for someone we get paid after their modification is done. Short Sales are taking anywhere from 3 weeks to 3 months to get approved with the lender and Loan Modification’s are taking about 3 weeks to a month to get done. For the people that are charging up front money to people I would watch out on that. I can’t believe that people are paying 3k for a loan modification!!! That’s a Bit much be everyone’s got to eat!! |
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homebroker@sbcgl
3538 Posts |
Posted - 08/30/2008 : 10:27:23 AM
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| To pay up front for something that is unknown and depends on the situation and lender, it is best to earn your money after the agreement is made much like we do on mortgages loans. We never get paid before the mortgage funded? Plus one works harder to get the mod accepted if they have a small paycheck riding on it. |
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FirstNLM
3 Posts |
Posted - 08/30/2008 : 10:40:52 AM
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| amen to that homebroker! |
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samurai
692 Posts |
Posted - 08/30/2008 : 10:45:02 AM
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| I like this model but how many loan mods have you guys done without collecting upfront? Once the loan is modified, besides suing the homeowner, what can you do to collect if they don't pay you? |
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crankyusi
660 Posts |
Posted - 08/30/2008 : 10:45:15 AM
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quote:
One Source Real Estate and Financial Services Inc.
Do you have a pricing schedule available to post? |
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homebroker@sbcgl
3538 Posts |
Posted - 08/30/2008 : 11:06:50 AM
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Have a credit or debit card in the file, authorized to charge it only once the modification is accepted by the bank.
quote:
Originally posted by samurai
I like this model but how many loan mods have you guys done without collecting upfront? Once the loan is modified, besides suing the homeowner, what can you do to collect if they don't pay you?
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rick2374
6 Posts |
Posted - 08/30/2008 : 11:09:58 AM
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[quote]Originally posted by FirstNLM
We Charge $995 for Short Sales and Loan modifications. We don't charge the client anything until we get a solution to there current problem. If its a Short Sale we try to get the lender to pay our $995 fee and if the lender doesn't pay the fee and most of them are not, then the client will pay the $995 or if there is a realtor involved the fee will come out of their commission if they agree to that and most of them do as it’s a small price to pay to not have to process the short sale. If we are doing a loan mod for someone we get paid after their modification is done. Short Sales are taking anywhere from 3 weeks to 3 months to get approved with the lender and Loan Modification’s are taking about 3 weeks to a month to get done. For the people that are charging up front money to people I would watch out on that. I can’t believe that people are paying 3k for a loan modification!!! That’s a Bit much be everyone’s got to eat!!
THREE ARRESTED IN MONTEREY, CALIFORNIA, LOAN MODIFICATION FORECLOSURE SCAM
FACTS
Maria de Lourdes Ponce of Gonzales and Santa Cruz residents Fabian Olivares Casillas and Melissa Garcia were charged on Aug. 18, 2008 with multiple felonies after authorities say they scammed property owners into paying thousands of dollars to save their homes from foreclosure.
The three people stand accused of illegally taking more than $150,000 from Monterey County homeowners. At least 63 Monterey County residents -- the majority of them Spanish speakers -- accused the three of taking thousands of dollars after promising to save their homes from foreclosure."
A Soledad woman who declined to be named said she paid Ponce $1,350 and Garcia $5,000 so they could help her lower her monthly payments and find a better loan for her two houses. They told her not to make any of her mortgage payments or to answer any of the bank's phone calls. But after months of waiting and looking for both of the women she decided to go to police.
Ponce was arrested Aug. 22, 2008 and later released on a $90,000 bail. She faces 11 felony charges, including residential burglary and elderly abuse, nine counts of grand theft and three misdemeanors.
Garcia was arrested in Santa Cruz County two months ago and is still in custody facing prosecution on charges of forgery, elderly abuse and multiple counts of felony grand theft in a similar foreclosure fraud scheme in that county.
Police are still looking for Olivares who has a warrant for his arrest.
Ponce, who has an office in her Gonzales home, would allegedly promise to help people -- most of them Spanish speakers -- renegotiate a loan with banks so that they wouldn't lose their homes to foreclosure. She allegedly charged her clients between $400 and $1,000. Ponce would then call her clients to tell them she couldn't help them anymore. She then referred them to Garcia, who promised them she would negotiate with lenders to lower their monthly mortgage payments or refinance their home mortgages.
Garcia allegedly told them she worked for Vista Funding & Associates Inc. of Santa Cruz County and charged between $2,500 and $2,800 to save homes from foreclosure. Often times, she would later ask for more money to find them a fixed loan, Miller said.
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rick2374
6 Posts |
Posted - 08/30/2008 : 11:13:47 AM
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quote:
Originally posted by crankyusi
[quote]One Source Real Estate and Financial Services Inc.
Do you have a pricing schedule available to post
For more info call my office 858-764-2427 |
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samurai
692 Posts |
Posted - 08/30/2008 : 11:56:40 AM
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quote:
Have a credit or debit card in the file, authorized to charge it only once the modification is accepted by the bank.
This doesn't answer my original question: How many loan mods have you guys done without collecting upfront? |
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homebroker@sbcgl
3538 Posts |
Posted - 08/30/2008 : 6:50:54 PM
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Never charges up front and have done many, I was going to run through an attorney and still may as you can get busy quick, the business feeds off itself from referrals. I do REO and the listing or going up, much more money in REO's listings than the peanuts in Loss Mitigation. I was helping my clients free at first, and no charge until we get get results. Some people are so upside down their best option is to short sale and move on! My wife does FHA I refer the buyer from the listings to her. The loss mitigation won't stop as many need help, but the good part is if you attempt to help them they are clients forever.
quote:
Originally posted by samurai
quote:
Have a credit or debit card in the file, authorized to charge it only once the modification is accepted by the bank.
This doesn't answer my original question: How many loan mods have you guys done without collecting upfront?
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gzajdel23
174 Posts |
Posted - 08/30/2008 : 8:20:35 PM
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quote:
Originally posted by homebroker@sbcglobal.net
Never charges up front and have done many, I was going to run through an attorney and still may as you can get busy quick, the business feeds off itself from referrals. I do REO and the listing or going up, much more money in REO's listings than the peanuts in Loss Mitigation. I was helping my clients free at first, and no charge until we get get results. Some people are so upside down their best option is to short sale and move on! My wife does FHA I refer the buyer from the listings to her. The loss mitigation won't stop as many need help, but the good part is if you attempt to help them they are clients forever.
quote:
Originally posted by samurai
quote:
Have a credit or debit card in the file, authorized to charge it only once the modification is accepted by the bank.
This doesn't answer my original question: How many loan mods have you guys done without collecting upfront?
That is the first time I totally agree with homebroker!
For all the FAKE LOs who charge up front thousands of dollars read this:http://www.illinoisattorneygeneral.gov/pressroom/2008_08/20080828.html
This is how our Illinois Attorney Generalfights with such a people! |
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FirstNLM
3 Posts |
Posted - 09/01/2008 : 07:46:21 AM
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| Our company has never charged a Penny to anyone upfront and we will continue to do it that way as well. Out of all of the mods we have done we have never NOT had a client pay us, we have had them not have the whole $995 when the mod was approved and when that happens we put them on a payment plan of 3 payments by credit card. If we can't get their mod done with the bank they don't pay a penny. |
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homebroker@sbcgl
3538 Posts |
Posted - 09/01/2008 : 08:46:05 AM
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This is that way it should be! Good Job!
quote:
Originally posted by FirstNLM
Our company has never charged a Penny to anyone upfront and we will continue to do it that way as well. Out of all of the mods we have done we have never NOT had a client pay us, we have had them not have the whole $995 when the mod was approved and when that happens we put them on a payment plan of 3 payments by credit card. If we can't get their mod done with the bank they don't pay a penny.
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varga197
209 Posts |
Posted - 09/06/2008 : 9:25:43 PM
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| great thread |
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varga197
209 Posts |
Posted - 09/07/2008 : 11:48:17 AM
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| Crankyusi and the others that charge upon completion of short sale: Do you have your contract Notarized? Otherwise you can not record it in many states and I'm not sure you can file lis pendins on an unrecorded contract... |
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