John Kim Services for Real Estate Pros Irvine, CA (949) 903-9077 Contact Profile
$500 for a person without any type of license out of their home.
$2,500 seems to be the average price out there.
$3,000 that advertises on the radio or TV (hitting about 400+ files a month).
$4,000 at a Law related company.
and my personal favorite.
1% of your loan amount (the more money it is the harder the file?).
So now it's another late night at the office and I decided to speak out on a few things that are somewhat disturbing to me. Besides thinking I should really eat before I write this. This industry is a service provider like any other. You pay for what you get and there are people out there that are trying to sell you everything and giving you nothing.
Now, I'll say this again and again, I'm only speaking about the ones you have to look out for. There are companies out there that are true blue so if you are one of them. then look away and keep doing what you're doing.
As some of you may know or if you are new, then bonjour, I process for companies out there to do their short sales and loan modifications. And I stay late to see what I can do to help others and get back to others as quickly as humanly possible. But today is just too long of a day and I don't like what I'm seeing.
I'm working on a homeowner that is a good woman and her story is a sad one. Too tired to tell the full story but she is an old recent widow that worked to help others and is paid by the state. She is in my care so I may have to work her file for free so mark another notch in the pencil before the year is done. But she was brought to me by a company that has charged her several "G's" to do her loan modification. Now, since I was not paid for it, nor it seems that I won't be seeing that they may have spent all of her money, I had the honor to meet this woman in person. So it seems that his is another person that was taken by a so called "Loan Modification Specialist" or "Loan Mod Company."
I'm thinking how is a person suppose to know how much to pay for this pre-foreclosure option and what to believe? You hear me say "buyers beware" but on what guideline does that person have to follow? The Better Business Bureau or BBB is ok but many are not on it and it does not rate their abilities just their complaints. And there are mortgage companies that got good ratings and we know where this comment is going. Yes, one could say that it goes hand in hand but in my small opinion I don't believe that a business should pay to be rated. It should be free. Now if the BBB was a fair judge then it should be free to join for both the consumer and business. But again that's just me.
Sorry. now back to the idea of how one will know the price to get to obtain a proper loan modification. Well, the short answer is NOTHING. Everyone has the ability to do it themselves like anything in life. But knowledge and experience is what we all pay for. Some get a great loan modification by just opening a letter from their bank while others make it thru the system and end up with a sub par one.
Then there are the many who don't have the time and/or the knowledge need to complete the process.
Speaking with many people in the banks during what seems to be a never ending loan mod process. The representatives from the bank inform me that the borrowers can do it themselves. And like many of the people that ask for my assistance I proceed to tell the representative, when they asked you for help you told them there was nothing you can do so try to short sell your home. They never have an answer to that comment. truth hurts.
To pay for this service is does cost money and that is not something to shy away from during the conversation with whom you may work with. But remember if you have one loan rather than some who have 4 loans against their home then the price will be different. The one that I love hearing as a sales pitch is a two for one deal. Now, if they have money to shave large amounts off from their original price for your extra home, which sounds like bargaining produce, then that is not the true price. And another fun fact is that if they say they are processing over 400 files per month, WOW, ask how many people are working on them because it better be a lot. I could go on and on but my eyes are blurring and I can't read what I'm typing anymore.
I believe that lawyers are expensive but they do deserve to get paid well for their professional service. But that lawyer should be negotiating your loan modification for that high price. And a processing company should charge about half of that. And anyone around $500 to me seems like a scary place when you have to pay PayPal or send a check to a home address. Google the address, hell Google everything:P I know what I said is somewhat obscure at time but hey, what can I say. I'm working for FREE.
Buyers Beware it's Quality not Quantity. Good luck out there!
By John Kim Services for Real Estate Pros with Property Services & Short Sale TC
Posted on November 09, 2008 12:25 AM
I've been a loan officer for 10 years. I recently interviewed at a Law Firm for a modification specialist position. I'm suppose to start tomorrow morning, but I have a very strong, intuitive feeling that I should NOT go to this office. I can't put my finger on it, but it's just an uncomfortable feeling.
The office is mid-Wilshire, and the first red flag was dirty chairs in the conference room. I was told they were coffee stains. Great. on every chair? I always thought law offices were quality offices. Secondly, the interviewer, though very nice, kept emphasizing that I would have to wear two hats. The job only paid $300 per loan mod - $150.00 upfront, the rest after the mod was completed.
My feelings are -- if the law firm charges $3000 to $3500 for the mod - and the lender doesn't accept the terms - does the client get the money back, or does the homeowner get part of the money back - the law firm keeps the rest and calls it a "retainer." -- SO, needless to say, I WON'T be going to this job tomorrow morning. I don't need any more guilt from selling Option Arm loans and now trying to help the people who are struggling. I AGREE that homeowners can do the MODification themselves.
Thanks for opening my eyes even further with your honesty and integrity.