More great information for all of you who are starting your own loan mod businesses. Clearly, in this economy….in this housing market…loan mods are a great way to help people and make money!

Watch this FREE detailed video how to start your own Loan Modification Business. Watch the FREE Loan Mod Video Now.

Here are a few more Loan Mod FAQs:

QUESTION:
If there is still negative equity in the home, in other words, the homeowner is ‘upside down’, why would they want to keep the home, even if the modified loan creates a better payment?
ANSWER:
Everyone has a housing expense.  If the modified payment is similar to a rent payment, it makes sense to simply keep the home.  The payments will be lower and the homeowner won’t have the expense of moving.

QUESTION:
What is the exact process I follow from beginning to end once I get a lead?
ANSWER:
Receive lead: You have received a voicemail, email or referral who is interested in a possible Loan Modification.
Call client: Urgency is the #1 theme here.  Immediately call your lead. If you don’t have a number, then try to get one, send an email, and then call once you do have the number.  Do not give up and don’t get frustrated.  Finding phone numbers is always part of the process. Preliminary discussion and mini-presentation: Typically this will be in person over coffee, but it could be done through email or a phone conversation as well. In this step, you’re basically gathering some initial information from the client, showing the client what your services are, deciding whether they’re a good fit for your services (pre-qualifying them using the questions we supplied you with in Agent Loan Mod Secrets, selling them on you and your company, and possibly even filling out the full Loan Mod Application and other paperwork and collecting a check to get started. In some cases, the client will even have all the documentation they need to give you with them, but in other cases, you’ll have to have them fax it to you or collect it from them later.  Don’t forget to follow up on all files: urgency is everything.
Application interview: This can be one and the same meeting as the preliminary discussion, or it can be a separate meeting or phone call. In the application interview, you’ll be filling out all the information on the Loan Mod Application, and possibly collecting documentation and a small application fee ($500, refundable deposit).  Always refund if it doesn’t get approved!!!  Have the client sign your 1 page contract, also included in Loan Mod Secrets.
Collect check: Once you receive your initial check, you know the client is sold and you can begin your work in earnest. This can be done in one of the prior two steps or shortly thereafter.
Collect executed contract and authorization/s: You will need to have the client sign a contract with you detailing the terms of the work you will do for them and the payments they will make to you. You will also be released from liability on this contract. The authorization allows you to contact the lender on their behalf. You’ll need one of each of these for every loan that you will be attempting to modify for your client.  (One for the 1st mtg, 1 for a HELOC, etc.)
Collect documentation: You will need to collect lots of documentation from your clients, as outlined in Agent Loan Mod Secrets.  We included blank forms for you to print and use.
Create physical file: As soon as you receive any documentation or paperwork from your clients, you’ll need to create a file folder. Label it. Organize the paperwork within it, perhaps with tabbed separators.  Make sure you have 100% of the checklist covered.
Create client info spreadsheet: Create a new folder created just for this client, and save it with a new file name of something like: Smith-M_123Broadway-firstmortgage-infosheet_7-31-09. Then, transfer all the information you collected in the client interviews and on the Loan Mod Application.
Fax and mail authorization letter: Fax the authorization letter directly to the Loss Mit Department at your client’s lender. You will need to call them to get the fax number for this specific department and to find out if they have any special instructions for faxes from third parties such as yourself.
Research property value: Do a couple quick searches in your MLS and in the county assessor’s real property records web page to estimate the property value. Record this information in the client’s file.
Call Loss Mitigation 48 hours after faxing auth letter for initial discussion: Verify that they received the authorization letter. If so, have an initial conversation with the Loss Mit Dept, and let them know they will be receiving a loan mod package shortly.
Write hardship letter: Either use the template to write a hardship letter included in Loan Mod Secrets, for your client, or have them do it themselves (hand written is not only OK, it’s actually better than a printed version). Have your client sign it.
Collect missing documentation: Unfortunately, this may be more difficult than you think. Stay on your clients until you have everything.
Fax package: Fax the complete package to the lender more than once if necessary. Include the account number on every single page. This is annoying, but necessary.
Overnight package, certified mail: Many lenders will deny ever receiving a fax or even a package if they can, but if you sent it certified mail to the address they gave you, then they have no excuse and will have to acknowledge receipt. The account number needs to be on these too, on every page.
Call Loss Mit 48 hrs after fax/mail of package for follow up: Verify receipt of the package. Ask when they will be able to process the file and provide an answer.
Follow up w/ Loss Mit until we have an answer: Call the bank once or twice a week until they either approve the file, deny the file, or ask for more documentation.  It is normal to have to constantly follow up with the Loss Mit department.
Call client every week, twice a week for follow-up, more if necessary: You can pick two days, such as Tuesday and Friday, for making your follow-up calls.
Stop when receive offer: If you receive a modification offer, great! Go over the details with your client and collect your final check. If the file gets turned down, find out why it got turned down and try to rectify the problem, if possible, and then try again. If the file is turned down for good, then let your client know why. Either way, you need to make your follow up calls to both the lender and your client until you are successful or the file is dead.  If it is permanently turned down, always refund any deposit money they gave you.
Explain terms of mod offer or other results with client: Don’t just give it to them, because they might not understand everything.
Collect final check: Send thank you card to client for their trust in you.
Ask client for referrals, sooner if appropriate: You won’t get referrals if you don’t ask.
Turn denied Loan Mods into Short Sale Listings: For more information on how to do this, visit www.AgentShortSaleSecrets.com
Input client into Follow-Up Marketing System: Loan Mod clients will love you for helping them resolve a stressful situation.  Some of them may need your help selling the home at a later date, and all of them could refer you new business!

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