Jul
7
How Does Loan Modification Work?
Filed Under Real Estate
Louie Frias asked:
I’ve been a mortgage banker and real estate broker since 1981 in California and Nevada. If I had to put it to numbers, I’d estimate nearly a billion dollars of business has crossed my desk. Meaning, that’s a lot of customers. I can also state that not ONE has EVER lost their home due to being in any sort of toxic mortgage product. That’s not saying no one has ever lost their home; there have been a handful that have. Unfortunately, divorces, business closing, injuries, etc happen in people’s lives.
I’m buried with calls and emails from friends and friends of friends who all ask the same qquaerion: “Can you help me fix my mortgage because my house is worth only half of what it used to be.”
How do you say “No”? I don’t.
For many years I’ve advocated safe mortgage practices and made some enemies along the way while lobbying for stricter mortgage loan officer pre-licensing and training. Seems as long as politicians or regulators are making money, they simply turn their head when it comes to doing the right thing.
I have no objection to someone who strips at night or bartends or landscapes, in trying to better themselves, BUT, I take GREAT offense to all the idiots who caused this problem by getting in without training or licensing, made a bucket of money, then abandoned the industry when it required skill to get business. Those of us still in business are the professionals. The ONLY ones who deserve to be in business.
I will fight harder than ever to assure the public at large never suffers at the hands of illegitimate charlatans. In the meantime, we are here to help those who need it. That, unfortunately means loan modification.
It’s not difficult to perform, but neither is a root canal or a contested divorce – for a professional. You can’t do either yourself; nor should you try. It takes knowing the laws of lending, underwriting and most importantly; the art of negotiating. Having patience, a LOT of time and established contacts is THE key to successfully performing a permanent loan modification that actually helps the homeowner. Only when a lender, servicer or investor challenges us or says “No”, do we send in the attorney. The attorney function is to submit an extremely complicated litigation proposal that permits us to entangle the opposing party for YEARS if necessary. Imagine how the homeowner feels when we get to do that. We have no fear of litigation nor creating bad press for the 800 pound gorillas threatening the consumer.
Phyllis
I’ve been a mortgage banker and real estate broker since 1981 in California and Nevada. If I had to put it to numbers, I’d estimate nearly a billion dollars of business has crossed my desk. Meaning, that’s a lot of customers. I can also state that not ONE has EVER lost their home due to being in any sort of toxic mortgage product. That’s not saying no one has ever lost their home; there have been a handful that have. Unfortunately, divorces, business closing, injuries, etc happen in people’s lives.
I’m buried with calls and emails from friends and friends of friends who all ask the same qquaerion: “Can you help me fix my mortgage because my house is worth only half of what it used to be.”
How do you say “No”? I don’t.
For many years I’ve advocated safe mortgage practices and made some enemies along the way while lobbying for stricter mortgage loan officer pre-licensing and training. Seems as long as politicians or regulators are making money, they simply turn their head when it comes to doing the right thing.
I have no objection to someone who strips at night or bartends or landscapes, in trying to better themselves, BUT, I take GREAT offense to all the idiots who caused this problem by getting in without training or licensing, made a bucket of money, then abandoned the industry when it required skill to get business. Those of us still in business are the professionals. The ONLY ones who deserve to be in business.
I will fight harder than ever to assure the public at large never suffers at the hands of illegitimate charlatans. In the meantime, we are here to help those who need it. That, unfortunately means loan modification.
It’s not difficult to perform, but neither is a root canal or a contested divorce – for a professional. You can’t do either yourself; nor should you try. It takes knowing the laws of lending, underwriting and most importantly; the art of negotiating. Having patience, a LOT of time and established contacts is THE key to successfully performing a permanent loan modification that actually helps the homeowner. Only when a lender, servicer or investor challenges us or says “No”, do we send in the attorney. The attorney function is to submit an extremely complicated litigation proposal that permits us to entangle the opposing party for YEARS if necessary. Imagine how the homeowner feels when we get to do that. We have no fear of litigation nor creating bad press for the 800 pound gorillas threatening the consumer.
Phyllis