Industry News

Finding the right loan mod company

Five key questions to ask

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If your clients are facing foreclosure and ask for help in obtaining a loan modification, how would you advise them? Can you legally assist them or do you have to refer them elsewhere? Last week's column looked at how loan modifications work. The next question to address is whether working with loan modifications makes sense for your business. In a recent interview, real estate coach Julie Harris explained that she became involved in training Realtors on how to work with loan modifications because so many agents were receiving requests about this topic from their sellers. Specifically, sellers wanted to know whether doing a loan modification was a better choice than doing a short sale. If you're considering working with loan modifications, the first step is to determine what is legal in your state. For example, in Maryland, agents can refer the seller only to their lender, to an attorney, or to a loan modification company. In contrast, agents in California can assist selle...