Mortgage Servicers Are Under Pressure to Modify More Loans
Posted in The Real Estate Agent of the Future By Danny C. Flucke Jr., Wednesday, July 29, 2009.This Wall Street Journal article illustrates how focused everyone is on the lender -- With little more than a glance given to distressed homeowners. It is interesting to note that while the various government bodies are cleaning up the "loan mod" industry - They still have not issued any sort of consumer guide to help homeowners needing assistance. Here are a few tips:
1) Ask For A Performance Guarantee. Anything less than a 100% Money Back Guarantee and you should simply call the next company. Does anyone else find it amusing that some companies "claim" 95+% success rates - Yet do not offer any guarantees?
2) Know Which Modification You Qualify For BEFORE You Submit Your Request. Sounds simple right? But most modification companies just send in your information (in a slightly better presentation than you could maybe do on your own) with a hope-and-pray system. Here is a little known secret: Lenders receive subsidies from the US Treasury for modifications. To receive those subsidies they must complete a modification spreadsheet. Only federally certified modification companies have access to this US Treasury modification spreadsheet and the required data feeds - Which tells you EXACTLY which modification you qualify for BEFORE you apply.
3) Ask Them How Many. Not how many clients they have helped - That's too easy to make up. Ask them how many homeowners are 60 days late on their mortgage within your modification grid. If they don't know - Or never heard of this data - Then they are not certified as in #2 above and simply using that hope-and-pray system.
4) Ask Them How Much $$$. Attorney rates vary - And the "reasonable" rate of $250 seems the most commonly accepted by state bar associations. Most modification packages are fully prepared and ready to submit with 6 to 7 hours of work. If the modification company is charging more than $1,500 - Hang up and dial the next one. (We charge a flat fee of $998...)
5) Ask For Referrals. Most of our modification clients have other needs also. These might include credit counseling, bankruptcy options, and short sale specialists. Most reputable modification companies are networked with high performing professionals in related areas - Each contributing and supporting other businesses. If the modification company has not earned the respect and trust of other affiliated professionals - Look for one that has. (Apx 30 to 35% of our modification clients DO NOT Qualify and receive a 100% refund. Most ask us for referrals to short sale specialists and/or bankruptcy attorneys.) Other clients and friends have used these simple questions to avoid the stress and frustration caused by those other "less-than-ethical" modification companies. Are there any other modification questions you would like answered?
Thank you, Danny C. Flucke Jr. Danny C. Flucke Jr. - Senior Partner Nationwide Mortgage Experts Direct: (714) 624-9479 Email: DCFJ@NationwideMortgageExperts.com Websites: www.NationwideMortgageExperts.com / www.NaMoEx.com LinkedIn: http://www.linkedin.com/in/DannyCFluckeJr Plaxo: http://DannyCFluckeJr.myplaxo.com/ Inman: http://www.inman.com/user/22381
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Submitted by Claudia Anderson on August 1, 2009 - 9:40am.
The government needs to get out of the business of the running the appraisers as well. Obama wants us to sell houses and then the deal is ruined with the appraisers that are sent from another county with no idea of the area!
Submitted by Jeff Manson on August 1, 2009 - 9:53am.
Come on - Didn't you know that things are better if they get involved and tinker with everything? They are going to fix everything ;-)
Jeff Manson
Real Estate Hawaii
Hawaiis
Submitted by Danny C. Flucke Jr. on August 15, 2009 - 10:53am.
Our great country is being undermined by naive and inexperienced voters AND politicians.
Even after being politically involved for most of my adult life - Almost 25yrs - It still amazes me how the inexperienced and naive are put in charge of "overseeing" our industries and businesses.
We have "Czars" appointed by this administration without any actual experience in the fields they are supposed to oversee. Some have never even managed a Dairy Queen - And they should decide how our businesses operate...? Pathetic.
It would certainly be refreshing to see some of the actual "Change" that was promised - Instead of politics as usual.
If you are going to appoint someone to oversee the auto makers - How about someone with auto making experience. Or at the minimum - SOME actual business management experience.
It seems the "Czars" appointments have more to do with "who" they know - Rather than "what" they know.
My grandfather was right. The apples don't fall too far from the tree...
Thanx, Danny
Danny C. Flucke Jr.
Senior Partner
Nationwide Mortgage Experts, LLC
Direct: (714)624-9479
DCFJ@NationwideMortgageExperts.com
www.NationwideMortgageExperts.com / www.NaMoEx.com
Submitted by bendjamin stokson on January 26, 2010 - 1:35am.
Yeah, they manipulated things to sell these to the consumers and now we can expect them to modify a couple each. Heck, if each of those loan originators were actually held accountable for the crap mortgages they sold, it would be wonderful. But that will never happen. Expect the Minimum. What we need to do is give the judges the ability to cram down the mortgages -- they would have all the information, the perspective, no vested interest, and a level of objectivity to actually hold some people accountable!! Mercy me...
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Submitted by bendjamin stokson on January 26, 2010 - 1:36am.
Yeah, they manipulated things to sell these to the consumers and now we can expect them to modify a couple each. Heck, if each of those loan originators were actually held accountable for the crap mortgages they sold, it would be wonderful. But that will never happen. Expect the Minimum. What we need to do is give the judges the ability to cram down the mortgages -- they would have all the information, the perspective, no vested interest, and a level of objectivity to actually hold some people accountable!! Mercy me...
My business: fast cash loans
Submitted by Freddy Braun on March 4, 2010 - 12:42am.
Frustrated with the slow progress of President Barack Obama's housing-rescue plan, administration officials met with mortgage executives Tuesday and pressed them to pick up the pace of loan modifications for troubled borrowers.
In a meeting at the Treasury Department, the officials called on mortgage-servicing companies to more than double the number of borrowers receiving help under the foreclosure-prevention plan by Nov. 1. The administration's goal is 500,000 trial modifications, in which borrowers typically make three months of reduced payments before they can qualify for a full modification.
So far, more than 200,000 trial modifications are under way. Administration officials have said the plan could ultimately help three million to four million homeowners.
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