How To Start A Mortgage Loan Mod Business | Mortgage Loan Mod Secrets | How To Modify A Mortgage Loan
Here are is the next edition of “Mortgage Loan Modification FAQs”. For you fact checkers out there….this info is available on the HUD web site.
Have you seen the new Agent Loan Modification Secrets video? Check it out now….Free Video on how to start your own Mortgage Loan Modification Business.
Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner’s Association fees?
Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.
Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification?
Answer: Yes, Mortgagee Letter 2008-21 states that the new basis interest rate is 200 points above the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of 10 years.
Question 6: Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.
Question 7: Are mortgagees required to perform an escrow analysis when completing a Loan Modification?
Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.
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Will homeowners who receive a loan mod that reduces their principal be required to pay the difference between their new principal balance and the net proceeds from a future sale up to the original amount forgiven on the loan mod? In other words, will a homeowner experience a windfall if he gets a loan mod and some years later sells his house for more than the modified/reduced principal? I hope that amount has to be paid back the bank/government, at least up to the amount forgiven!
Hi Tom,
At this time…no. There are no provisions in any of the recently passed legislation about any sort of revenue sharing..etc.
Will let you know if anything changes.
Tim
Is there any new provision in Obama’s plan revealed on March 04.If homeowner modifies his loan and reduces his monthly payments will he be responsible for the difference later when he sells his home ?
Hi,
Yes…new details. Read the latest posts for what you need.
Tim
Will somebody qualify for a loan mod or Affordable Refinance if he has an actual 5.5% rate fix 30 yrs but got laid off from work not missing payaments on mortgage so far but income has decreased significantly? Please advice
Thank you
Short answer…depends.
But, probably yes. If you can show that you have decreased income…but still have an ability to pay……you probably can do a loan mod.
Hope this helps!
Tim
Hi,
There was a provision for principle reduction but, the details were oddly missing.
IF the lenders have to reduce the mortgage balance in order for the ratios to work (to qual for the mod)
then the lender will most likely take the amount that you are ‘upside’ down by and add it as a
balloon payment…in other words, if you are upside down up X you will still have to pay that
back when you go to sell.
Hope this helps!
Tim
Hi Mark,
Without more information, yes. Lender should work with your borrower.
Tim
Hi,
Nope.
Tim
In light of the new instructions addressed on the web site “www.financialstability.gov” how does this loan mod program now work for non-loan servicers as the Federal Government is telling the loan servicers basically not to deal with “paid” mod specialists and refer homeowners to non-profit agencies to and also to deal with the homeowners directly.
You are offering the loan modification training for realtors, mortgage brokers, etc. Attorneys are claiming that this is something that can or should only be done by them for which they charge $3-4K upfront, but guarantee the modification (not the principal reduction). If I was in need of a loan modification, I would want someone to do it that can guarantee their work or my money back. Why should I take the training and do it myself versus working as an independent contractor for an attorney and just getting them the clients for $300-500 each? Will I be able to guarantee the loan modification to clients and what would I use to answer credibility questions about my services? Thank you in advance for your prompt reply.
Benjamin
I read your question several times and am not sure what you are asking….
call us to see if we can help..
866-422-9497
Hi,
The Gov an others are telling people to avoid companies that charge upfront…we strongly suggest that you do not charge up front…only charge once the mod is completed.
Tim
Instead of charging clients, couldn’t we charge the banks directly for handling loan mods? If so, how would you go about it? (i.e. would you contact Human Resource Dept? Loss Mitigation?)
And what would the charge amt be?
Thanks, Kaity
Since the gov’t site clearly states that homeowners avoid paying for a loan modification, how can we handle the apparent requirement that we, as loan mod specialists, charge a fee at closing? The site says do not pay for a loan mod…not do not pay a fee up front but it’s okay at closing.
Sherry Brown, Phoenix
Hi,
The loan mod secrets program is the step-by-step system for doing your own loan mod..and then offering mods to others for profit.
Few things to consider:
1) Dont charge until the mod is complete. (no closed…mods arent refis)
2) The lenders can not deal with the masses of calls for mods.
3) The lenders are always going to offer the borrower what is the best overall deal for THEM…not the borrower.
4) Most people will not want to deal with their lenders directly…to process their own mods. They will want you to do this for them.
Estimates are that maybe 3-4 out of 10 will ‘close’. In other words, the borrowers wont complete the mods. THOSE borrowers become
your short sale listings.
Hope all of this helps!
Tim
Hi Tim
Are we behind the 8th ball with Obamas new Housing plan ,from what we hear is that its going to be required from lenders to work with borrowers on doing loan mods,and will this make borrowers avoid our services and go directly to their lenders.
Also I understand in Ca,loans in general are non recourse and that in short sales the borrowers will not get a def judgment and or tax liabilities on the forgiven amounts, is that true
Thanks
found this…
http://freakonomics.blogs.nytimes.com/2008/11/25/recourse-of-course/
Hi,
Ca (and other states) with non-recourse loans makes it so there generally is no def judgment….you are correct.
The question is…does the homeowner have a purchase money loan or not.
Tim
He All, any upates for Loan MOD contact numbers? Looking for CITI Mortgage or maybe Nat’l CITI…or is it all PNC now?
hello Tim …. I’m a loan officer, non-realtor, here in Ohio. Can you please confirm with me, if I can do loan mods in my state without a realtors license. Not too sure even after my readings. Really interested in purchasing your training course, however just want to make sure. thanks
Hi Cindy,
You will need to call the Division of Real Estate….Department of Commerce to know for certain.
We expect everyone who is involved with mods to always check with their states laws…and never, ever charge and upfront fee.
Tim
Hi Tim, this is Cindy, here from Ohio. I just purchased the Loan Modification Secrets e-book, and had a question. You state never charge any upfront fees. Now, I do understand that I can only charge/collect fees for the actual modification AFTER service has been completed. However, I would like to charge & collect for an application fee & consultation fee, for roughly $199. Is this ok to do? Thanks Cindy
Hi Cindy,
Even in states that have NO laws etc concerning Loan Mods we strongly suggest that you only charge for services rendered. In other words, no upfront fees of any sort.
Contact your states Division of Real Estate/ Department of Commerce for laws etc. You may also want to just use Google…for example “Ohio Loan Modification Company Guidelines’ etc.
Hope this helps!
Tim