Another Loan Mod bites the dust! My New Listing (again!)

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Education & Training with HD Realty

Another Loan Mod bites the dust!  My New Listing (again!)

Back in the summer of 2010 I listed a home.  It was a HAFA short sale deal where the bank had already given us the price and approved the seller, I just had to find the buyer.

We got a buyer within the first week, but before the seller could even sign the contract, an attorney contacted her and told her that he would be able to do a loan modification for her and let her keep her house at a payment she could afford. (remember she had already been turned down for a HAMP mod, that's why we were in the HAFA program!).

Well, guess what? Friday I got a call from her, and Monday evening I re-listed her home.  Want to know what the attorney was able to get for her?

Her old mortgage payment was $1,650 per month.  The Mod that the attorney negotiated?  If she sends the bank $3,200 down, they will lower her payment to $1,634.  Yes, you read that right.  She gives them $3,200 and they will lower her payment by $16 per month.  Wow, that's really a help to her budget I bet!

Don't get me wrong... I think that GOOD modifications are a great solution to what we're experiencing in our market, but some of these attorneys are feeding a line of crud to home owners and giving them false hope.  How much did this false hope cost her in this case? $2,500 to the attorney!!!  They take people's money and tell them "we'll try" and then when they get no results they say "we tried"

Use this example when you're talking to clients and share with them the success rates that you've personally seen clients have with modifications.

Please share with us what success you've seen in people getting loan mods, also, do you know of ANY non-owner occupied homes getting loan mods?

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  1. Jim McCormack 01/19/2011 10:00 AM
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Topic:
Real Estate Sales and Marketing
Location:
Florida Seminole County
Groups:
All Things Florida
Real Estate Instructors
Short Sale Specialists & Pre-Foreclosure Education
Short Sales Pre Foreclosures Bankruptcy and More!
Short Sale Support Group
Tags:
loan mod
loan modification
shortsale
hafa
hamp
obama short sale
listing

Comments 63 New Comment

Anonymous
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Rainmaker
261,048
Paddy Deighan JD PhD
Paddy Deighan J.D. Ph.D

I established a group for attorneys and real estate professionals and posted two blogs about why loan modifications are failing today and the hypocrisy....it won't solve any problems but it does tell you the :real stories"

January 21, 2011 02:10 AM
Rainmaker
398,286
The Scott Loper Team Lansdale & Harleysville PA Homes
Keller Williams Real Estate - Montgomeryville

Hi Andy,

That is a horrible story, so much aggravation for the homeowner. 

Lisa

January 21, 2011 07:03 AM
Rainmaker
97,715
Andy Tolbert
Orlando Waterfront Homes for Sale
HD Realty

Thanks for all the comments, it just shows that we all have the same frustrations with the system all over the country.

I liked what Victoria said in #57: Keep the post and show it to potential clients!

Everyone keep up the great work and keep helping as many families as you can!

January 21, 2011 09:00 AM
Rainer
49,670
Paul Armstrong
Realty ONE Group

Great post Andy, I think it's illegal in some states - California being one of them - to charge a homeowner a up front fee to do a loan modification.  I had a friend here in L.A. that paid an attorney $3,000 to do a loan mod and nothing happened at all!  Well guess what - She got that attorney disbarred!   That are so many scams to look out for.  I'm happy you got the listing and sorry your Client is out $2,500

January 21, 2011 06:45 PM
Anonymous #63
Anonymous
Lorraine Smith

Having been a Real Estate broker/office manager for 7 years, I lost my job in 2008. Since then, I worked part-time in the health industry. Meanwhile, I tried for a modification myself. Citimortgage touted a HAFA program we seemingly "qualified for". Imagine my nervousness at turning my financial information over to unknown goons over the phone with no real specifications for acceptance or rejection. They kept assuring me that we would qualify ---but it would feel like a "walk in the dark". After a few months, our credit scores were ruined since they didn't "apply" our monthly payments in order to make it appear that we were late. Letters came with fees tacked on which we were told to ignore. After our modification contract finally arrived, turns out the payments were going to be 1238 instead of 1760---for 5 months. After that we would owe a balloon payment of $6800! And then the following payment would jump up to $1900. Hmmm, so much for helping homeowners remain in their homes! They told me to "do the Math!" Who are these people? I couldn't believe the guy on the phone thought this was a real deal. I sent a scathing reply---something about get a real job for a company with some integrity. I have a link to articles that tell the real story: the mortgage companies get TARP money for every home they short sale, an amount more than what the value would have been in 2009-- even after paying a pittance to the seller for the move.

January 21, 2011 09:17 PM
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Rainmaker
97,715

Andy Tolbert

Orlando Waterfront Homes for Sale
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