ATTENTION REAL ESTATE LICENSEES: HOW TO LOSE YOUR LICENSE!

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ATTENTION REAL ESTATE LICENSEES: HOW TO LOSE YOUR LICENSE!

* * * * HARD CORE REAL ESTATE TALK * * * *

WARNING! THERE APPEARS TO BE A COTTAGE INDUSTRY DEVELOPING FOR REAL ESTATE AGENTS:

LOAN MODIFICATION ADVICE

Read on Inman this a.m. an article "Loan modifications: salvation or scam?" in which they describe and even recommend that real estate agents can provide this advice and even charge for it.

* * * * shared a number of ways that Realtors can legally assist their clients in navigating through the loan modification process and, in some cases, be paid for their efforts, more. . . . .

I believe that this is very risky business for any licensed real estate agent or broker.

Offering loan modification advice to a home owner is not, IMO, our business. We are neither trained nor skilled to give such advice and may violate the scope of our license to do so. I'd be interested to know whether an E&O insurer would represent a real estate licensee in a claim against them for mortgage modification advice.

Most of the real estate agents I know don't know the difference between a deed and a deed of trust. Nor do they understand the structure of the loan/loan servicing, investor, markets and relationships. When the vast majority of real estate agents must send a prospective home buyer to a loan officer for simple price range pre-qualification, the thought of those same agents giving advice and charging for it to home owners in mortgage distress sends shivers down my spine.

IMO, real estate brokers/owners would be advised to have written policy limiting their agents' ability to offer loan modification services, paid or unpaid.

REALTORS^® CODE OF ETHICS

Article 11
The services which REALTORS^® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected . . more. . . . .

REALTORS^® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence . . more. . . . .

Home Owner Family

"Honey, how can the mortgage company be foreclosing? I thought our agent was helping us get our mortgage modified."

"I don't know Dear. They promised that our loan was one that would be easy for the mortgage company to modify so we don't lose our home."

Courtesy: Lenn Harley, Broker, Homefinders.com, 800-711-7988.

_______________________________________________________________________________________________________

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Posted by Lenn Harley, Real Estate Broker, Virginia & Maryland on 08/09/2009 07:33 AM

Comments (230)

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230 Comments on ATTENTION REAL ESTATE LICENSEES: HOW TO LOSE YOUR LICENSE!

AUG

2009

Lenn. You are correct. I for one could not even begin to speak to such issues even if I wanted to but I know of agents that are very fluent in the mortgage industry that would probably not have a problem with it....even though it would not lessen the liability.

Lenn Harley writes it and and those of you who don't take notes will be left behind (without a license).....thanks Lenn

Good advice. Leave the loan modifications to the mortgage professionals. Agents also expose themselves to liability when taking short sale listings when they lack the knowledge and skills to avoid foreclosures.

Lenn,

It only takes one unsatisfied client to file a complaint, and then all hell breaks loose. Realtors need to practice "safe real estate."

Rich

Wow! I wouldn't even touch it with a ten foot pole. Thanks Lenn!

Oh boy - more law suits and bad reputations for us Realtors in the works me thinks ...

Good warning Lenn ...

Cheers !

Sheldon

Lenn,
Great advise. Realtors need to practice the trade they were trained for and stay our of all these other thing they seem to be looking at these days. That includes the famous "pay your mortgage off in 3 years but first send me a bunch of money" deals going around.

Lenn, great post! The loan business is getting changes everyday! I just tell my clients they change and I don't want to say something I shouldn't and please go visit a loan officier. I agree with Sheldon every one tries to take our money (commission) and give us a bad reputation. There are some very good honest realtors !

Lenn, excellent advice. I don't know the ins and outs of mortgage stuff at all. I help people buy and sell houses. Why would someone risk losing their ability to earn an income by doing something like this!

I don't know anyone who has ventured into this field. I definitely would not as I am a real estate agent, not a lawyer or mortgage expert.

Lenn, I can't imagine opening yourself up to the liability. Thanks for teh heads up on this.

Why on earth would we want to get into that mess? Who wrote that stuff? You're right Lenn, definitely not something for the Realtor to pursue.

I keep telling people who get *excited* when they read these "You can get paid!" emails that they better watch out.

I'm not getting rich, heck I'm barely hanging on, but I only practice what I know and am allowed to practice.

Loan modifications are NOT working in Mi. The banks will just not do them here.

They may for 3 months lower there payment, but that is about it.

Lots of scams going on where desperate sellers will try to do them with inexperienced Realtors.

I tried a few times, failed, now we just go straight to a short sale if the seller has a hardship.

My most frustrating thing is a seller who lost job, used all of savings to hold onto house, got a new job, less money in a differnet location.

Now needs to sell their house which is upside down. Hasn't missed a payment during the layoff period.

Can't buy because not qualified for new house, even though credit is 740.

So now must miss 2 payments to get the bank to "consider the short sale", now credit is destroyed and can't buy when they don't have the the first loan is gone because credit is destroyed.

Gee, we have a messed up situation.

Sorry for the rant.

Not my bag...wouldn't get involved...LM 'saren't even guaranteed now and wouldn't even be considered unless you are late with your payments...makes no sense.

Missy. Rants welcome here in "hard core real estate talk" land.

You made an excellent point. What risk is the agent incurring if the mortgage company says that they won't discuss modification until the borrower is 2 months behind and the agent advises that they must do so????

THAT IS NOT A RISK I AM WILLING TO TAKE. It goes a lot farther than just their mortgage. The mortgage company doesn't give a fig if the home buyers credit is destroyed. They appear to get some prurient pleasure from seeing mortgagors in financial distress and then recommending that, "By the way, you must destroy your credit before we'll talk with you".

Not advice I want to be involved in.

Edward. They may be knowledgeable about the mortgage business, but, IMO, unless they use that knowledge, which I do each and every day, in the furtherance of their core business, representing home buyers and sellers in buying and selling homes, it's still, IMO, risky business.

Julie. Thanks. Drop by anytime. I love your comments.

Roy. Agreed and, IMO, the fall-out from that business is just beginning.

Richard. Very good and very true.

Erin. You are smarter than the average bear.

Lenn-I ran across an agent offering these services recently and NOT having the money go through the brokerage as they weren't offering "real estate servcies." Another slippery slope and wonder if the RE Board would agree.

Lenn,

Very good points. Yes I have gotten the letters from some lenders offering to pay for leads on refi's. I steer clear of them and besides I have several lenders with different companies that I use regularly. I do not get referrals but, I know that my clients are going to be taken care of with the level of service I would expect. I am not an attorney so I do not give legal advice, I am not a lender so I do not give advice on mortgages. This is akin to the calls you always get about "Hey do you want to have a way to supplement your income?" No I am busy enough.

Sheldon. Indeed. More lawsuits, more complaints and real estate licensees will fall farther in the ranking of public opinion. How low can we go??

Barry. Oh my goodness! I heard a radio ad yesterday where home owners could pay off a 30 year mortgage in just 2.5 years without a ________ or ________ or anything. Just use their "system".

Jane. I believe that most agents are honest and good. This type of nonsense isn't going to help.

Bob. Stick to advise about buying and selling homes is good advice.

Janice. Indeed. I was surprised to see that written by an experienced real estate writer.

Gabe. Follow the link. I read it on Inman by one of their writers.

Kris. I wouldn't take a dime to give mortgage modification advice.

Neal. Agreed. That is one of the most injurious pieces of advice any mortgagee can give.

Cindy. Eeeeekkkkk! That broker is at extreme risk of losing their E&O.

Larry. I get the same mail and calls. They're wasting their time.

Even when you're careful, and know what you're doing, you can still get tripped up. I took classes in short sales and have the CDPE designation. I had one client earlier this year who needed to sell quickly, as he stopped making mortgage payments and the bank was to foreclose. I told him I'd help him sell the house, and meanwhile I'd help deal with the bank. HE was ignoring letters/phone calls, etc. I got him the Citibank paperwork to try to work out a deal, and he filled it out. I faxed it in and tried to stall the mortgage foreclosure. Meanwhile, we hustled and got a buyer! And it wasn't even a short sale situation! Great!

Seller freaked. He thought I would help him STAY in the house and stop the foreclosure. He wasn't ready to sell. He said my job was to keep him in the house not sell it.

What part of LISTING CONTRACT don't you understand? He rejected that great offer, and now 8 months later has had no other offers and the bank is still hanging over his head for missed payments.

Buyers/sellers hear what they want to hear sometimes, even when we are explaining hte process.

Erica. You wrote:

Buyers/sellers hear what they want to hear sometimes, even when we are explaining hte process.

Excellent example of why we need to stay out of the mortgage modification business.

Some of the best advice I have heard in a long, long while. Most loan mod companies are frauds anyway.

Terry. Agreed. Loan mod companies are often frauds and it's not a business that reflects well on real estate licensees.

Here will be another reason that the public will blame the Realtor! What blows me away is that some will give this a try all in the name of making the all mighty dollar. I do know the difference between a deed and a deed of trust but I do not know how to refi your mortgage, I am not in that business. My husband is a home inspector and I have been on hundreds of inspections with him. I do not go around telling folks I will inspect your home because I know what they do and you can just pay me. Although I think I could do a good job, I am not licensed in that field.

Lenn, I'm thinking that we need to stick to what we do well - listing and selling real estate.

Our Motto: We are REALTORS, we are NOT Attorneys, nor are we Accountants, we are NOT home inspectors, nor are we Loan Mod experts .. We are NOT fill in the blank. When we step over the line into another profession or category, then we put our license on the line and our clients in jeopardy. Excellent Post, Lenn.

June. Right on target. We know enough to do our job and that is complicated enough.

Patricia. Listing and selling real estate is a full time job.

Dick and Dixie. Right on target. I just don't know why a real estate licensee would even consider taking on the risk of giving mortgage modification advice. The government can't get it right. The mortgage companies can't get it right. What would make a real estate licensee want to touch it???

Lenn, real estate is getting complicated enough without getting into other people's business where we are not qualified. The sad news is this is only one area where in my opinion agents violate Article 11.

Michael. Agreed. Agents need to stick to their core business.

Thank you Lenn! Great advice for real estate agents to NOT give advice on loan modification to our clients!

Funny story about loan mod...right now I have a home listed as a short sale with a client, who by they way has a letter from her bank recommending she either short sale or foreclose (long story) yet on Friday she received a letter from the bank saying she was approved for a loan modification on her home. Should be interesting be cause we have a offer and a negotiator working on the file right now.

Any thoughts?

Lenn: We do short sales and we recommend 100% to our clients that want to short sale their property to attempt their own loan mod first . . and only then they should explore a short sale as an option.

Lenn: This point cannot be repeated enough. I assume that real estate agents who help folks with loan mods only do so to grab a quick buck. But, they will be paying that back ten fold!

It's amazing how much SPAM I get on a daily basis regarding Loan Mods... Im sure somewhere along the line someone is getting suckered in. Great post Lenn as usual.

Typical of how banks bifurcatee services.

The question about the loan modification offered is, will it help save the home. As a real estate agent, I'd tread very carefully in this case.

Recommending a short sale when they could save their home could be risky for a listing agent.

Glad you're in that pickle and not I.

Fernando. Good advice. Let the bank do their job and then you do yours if needed.

Melissa. Indeed. I wonder if their broker knows what they're doing?? Eeeek.

Mike. Here too. I stick to the business I'm licensed to do.

I never understood why agents would want to pursue this business. Agents are having a bonanza in Southern California in the low-end of the market; there are 10 buyers for every foreclosed home and a lot of foreclosed homes coming to market next year. On top of that opportunity, there are far fewer agents than there were two years ago. Sometimes, I think folks are looking for the "little magic pill" for bsuiness development.

Loan modifications are highly specialized legal transactions. I have some pretty good knowledge of secondary mortgage markets and I don't want to touch them for fear of diluting my core business; making mortgage loans.

Lenn - doesn't it remind the situation just few short years ago when Big Boys needed to sell as many "creative" loans as possible, so they allowed to postpone with loan origination licensing for a while? At least it was so in Ohio when they started licensing loan officers only in 2004 and allowed doing unlicensed origination to those who were "experienced"

Looks like the same Big Boys are desperate to sell as many loan modifications as possible, so they encourage still reputable but "hungry" (in their opinion) Real Estate agents to jump into this wagon. Smells stinky for me.

Real Estate agents should be smarter than this.

Most of the loan mod agents in my market are in it to get listings.

Thank you for bringing up the Code. it is not mentioned often enough. I am amazed how little knowledge I see of this and fair housing rules despite the fact they are required courses. Maybe make the Code an every year requirement?

Lenn...

You know where I stand on this ... I don't like straying "outside" the box!

I'm not one for giving advice in this area either, that's why they have mortgage professionals. For anything of this nature, I refer someone to a lender.

Lenn,

I followed the link and read the article. Very interesting. I can understand why agents are considering it. And why we see more of that now. It is purely economical. If we do well without it, why even bother? And members who responded to you do rather well or OK, and they do not consider. A lot of those who consider do not do very well, and they are looking at any legal and ethical way to complement their income.

The big question, of course, whether this is ethical and how legal. I would not paint it all with one brush. I do not do Loan Mods, and I am far from being an authority on them. I simply think that with loan mods like with everything else, there are those who are legit and ethical, and those who are not.

But again, this field attract both scammers and good people, who are struggling to survive.

Thank you for an interesting post and a great link. This gives me food for thought and something I would know when faced with the question of Loan mods. Some comments also were very helpful.

Any time a R holds themself out to be a 'Specialist' in ANYTHING besides their local real estate market and service area ~ they are taking undue risk of their license and credibility.

I'm already too busy to complicate my life with such things. :)

Thank you for the reminder, Lenn. There are plenty of 'Specialists' who I hope read it.

Brian. I don't understand it either, unless their core business, listing and selling real estate is not successful, in which case how competent are they to give advice about loan modification? Beats me.

Svetlana. I don't know which "big boys" you mean, the big boy lenders or the big boy real estate brokers.

J. Phillip. Not worth the risk.

Joe. That would help some. However, for every REALTOR in the country, there is a non-Realtor licensee practicing also.

Richard. Agreed. Kind of like wondering into Alice's Wonderland.

JL. I don't know many mortgage brokers who are going to take clients for loan modification. Attorneys perhaps.

Jon. It is indeed an interesting subject. What I do know is that as a real estate broker, my policy is to eschew loan modification representation.

Candice. Just what I'm doing. Getting the word out.

I really sometimes find myself wondering who these agents are who would consider putting themselves at that much risk. The Rules of Practice are very clear and the NAR Code of Ethics makes the state comission rules even more clear. I generally refer to them all as the "fifty ways to lose your license."

Fortunately, I'm not willing to step over that line, and I know where the line is. I am a real estate professional. I am not a loan modification specialist. And I have a Broker who knows where the stamps are, if I shoud put my office or company at risk, to attach to the envelope that has my license in it.

Yikes! I used to build homes , but, I NEVER tell a client what is or is not wrong with a property, I leave that to a clients chosen inspector. Perhaps it is time we drafted a written policy for our agents for this subject, I DO NOT want any of them in these affairs. Thanks for heads up Lenn...

Lenn - Totally agree ! Let the loan modification "opportunties" go to other folks. I cannot imagine Realtors giving advice and recommendations along these lines. A better person would be a credit counselor or a mortgage professional.

GOOD WRITE HERE! I would never. I've had past clients call me regarding this and I direct them to their bank. If their bank is testy or is "playing games", as one of my clients calls it, I refer them to a company that specializes in this.

Lenn - I talked to an agent who got some training in loan modifications and thought she would do this, but decided against it as there are non-profit organizations who will help homeowners for free. She couldn't justify charging a fee to homeowners in distress. Loan modification is a very stressful, time consuming process and takes us away from selling real estate. Not to mention the liability issues inherent in giving people advice as the lender threatens foreclosure. If the loan modification doesn't work out and your client loses their home, now what? Not all loan modifications are successful.

Why do some agents want to be more? Isn't being a good Realtor enough. Sure, I tell my clients of a program I have heard about, we are more knowledgeable, aren't we, we read everything RE don't we, but to actually promise I can help directly, never!

Dee. I don't play either. Even if I could, I can't read the bank and don't have privy to their guidelines for whom they mod and whom they don't.

Christopher and Stephanie. Agreed. I don't touch it either.

Frank and Jodi. All brokers should have Policies and Procedures. In fact, it's required by my broker license.

Dedra. That broker with the stamps is protecting your license and their own.

Lenn, we do, and it is going to be revised...

Lenn I am with you on this. I will not do them or advise on them. We get tons of calls from these folks trying to show us how they can make us extra money . Their concern seems so touching ! But I do not want to be touched !!

Lenn, I don't think many agents realize that by opening their mouths they are deemed professionals in their field. The problem is these agents are giving their opinion. Opinions can get us in trouble...

I find E&O insurance only covers you when your not in trouble!

I would think in most states you would either need to be a licensed mortgage broker or a licensed attorney to negotiate contracts or agreements between a borrower and a lender. Definitely outside the scope of what a Realtor is legally permitted to do.

Lenn,

In Toronto, the market didn't tank the way it did in other areas. So, the loan modification consulting business never really developed here.

But, the market did slow down, and many agents started doing things in areas that were well beyond their expertise. And, to your point, they place themselves at risk.

Brian

Lenn, Loan mods are not something I do. BUT...they do have their place. In some States NO licensing is required to do a loan mod. Some States you have to have a Real Estate license.

I actually don't see a loan mod being as difficult as a short sale. With short sales you have to prove hardship with a loan mod you don't.

It is a service that the consumer can use. The question is who is willing to do them?

Also, would I rather have folks in my market be scammed or would I rather help them do a loan mod myself where I know it will be above board? I'm not sure.

I recently heard of a homeowner loosing their when they were working with a National Loan Modification company who took their money and gave nothing in return. The homeowner honestly thought this company was helping them.

Lenn, thanks for the post ! Mortgage Fraud already has it's share of so-called Rescuers and/or Phantom Help !!!!!!!

The error in your post is the assumption all brokers are Realtors...they are not and are increasingly ditching the "R".

However, I 10000% agree with you. We just seem to find more ways to put the neck in the noose.

Michael

Lenn - We have a written policy that prohibits our agents from handling loan modifications as well as other roles such as loan officer, title agent, HOW salesperson, etc. Our agents are retained for one reason - to sell real estate.

Even though my business partner and I are lawyers, we rarely handle residential loan modifications. When we do, it is in the context where there is a pending foreclosure and there is some point of leverage such as usury, mortgage fraud, TILA violation, RESPA violation, defect in foreclosure, etc. which can be used to set aside the foreclosure. Otherwise, we refer it out to a local not for profit or a bankruptcy attorney who are better equipped to handle loan modifications.

We do handle commercial loan workouts for developers. Again, this is done under our law firm and not under the brokerage. Our brokerage E&O doesn't cover loan modifications (which our insurer views as the practice of law, not the sale of real estate). I agree with our insurer and view loan modifications as the practice of law. So, in addition to a complaint against your license, you may also be facing a charge of unauthorized practice of law.

What puzzles me is WHY agents who have no idea how to put together a mortgage would now hold themselves out to the public as experts in modifying them. The world of real estate continues to fascinate...

Wow, that's scary stuff! When working with sellers in a distressed situation I always tell them "I am not a mortgage person! If you need help in that area, I suggest you call your mortgage company to see what they can do to help. If they can't or won't, I can give you the names of a few local mortgage brokers."

I for one am not looking to lose my license over something that is easy to prevent.

Lenn:

Before I do a listing presentation, I ask the client if they are upside down in the property. We discuss the options that are available. On my first appointment I don't come to list the property but to provide information. I have a list of the free services that are available in my area. I also have a generic list of what most mortgage companies will require in their loan modification packages. I stress that if they are not willing or unable to provide this information that there is little that anyone can do to help them. If they are willing to provide that information I try to steer them in the right direction. More often than not they do not qualify for a loan modification but do qualify for a short sale and I end up with the listing. My clients are grateful for the no-pressure approach. I started out years ago, long before this became the thing to do and was a Certified Loss Mitigation Consultant and every now and then I got to help someone save their home.

Hi, Lenn -

I think Ryan SHaughnessy's comment above states it all. We are not attorneys, and if the E&O companies consider this law practice and will not cover us, that's reason enough to avoid it!

Like you, I also am too busy to "supplement" my income with things I know nothing about.

As always: "WLS" ("What Lenn Said"!)

Good points to ponder! As an EBA I rarely have encounters with sellers, so this wouldn't occur with my brokerage. But I also wonder why "Loan Modifiication" experts get their expertise? Who qualifies them? Loan Modification didn't even exist 18 months ago . . . the new Snake Oil Salesman -- cures what ails ya??

My suggestion is to either call an actual attorney who deals with this, or call the bank.

But whatever you do, don't start paying thousands to people to do this for you.

Oh my word... I just had a broker meet me yesterday to pick up keys who gave me a bunch of new cards for "credit counseling, loan modification, loss mitigation..." there is a list of services, 10 to be exact. Hmm... I may have to send my friend to this post.

Lenn - all I have to say is NO. THANK. YOU. I am in NO way, shape or form qualified to give that kind of advice. And, as broker or my own new company, will advice my agents to say the same.

Part of my experience as a former commercial lender was in the bank's loan work-out department where I first did the analysis and later the loan modification structure. I'm a Realtor now and could I do loan modifications, probably. Do I do them -- no. I do work with a loan modification company and I check the status of the homeowners they get from their client base which includes Citi, Saxon, B of A, Chase and the like.

I don't hold myself out as a loan modification "expert" and I don't do anything but gather mortgagor information and submit it to the company who takes it from there. Occasionally I'll have the benefit of a short sale listing when the homeowners' circumstance does not allow them to remain in the home. That's where my loan modification activities end. And I like it like that -- my attorney friends like it too. That's their bailiwick.

Living in the land of distressed there is plenty of money making opportunity for a fraudster. My former partner wanted to become involved in loan mods and my broker said NO that rang across the halls.

Lots of people do loan mods - lots of attorneys. I went and saw many offices and have it narrowed down to several to refer people too. One of them even negotiates short sales too. That idea sounds nice to me since there is just too many complications and liability involved in those matters.

Yet another path to avoid. There was an excellent article in Friday Facts WAR by Annie Fitzsimmons on a similar theme where the listing agent may or may not have broken the law of agency by directing traffic in multiple offers. LA stated this offer is too good and will not appraise. WEll if the Seller directed LA to do so, great no problem there. IF the LA felt compelled to make this judgement on a very good offer without the knowledge or consent of the SELLER regardless of whether they are correct in that statement, man that is a big no no. Might some real estate agent egos forget the bwho is the principle in the transaction and what directive they need to follow?

On another note my husband and I strongly agree that dual agency is a travesty of justice. HOw few agents understand the complexity of representing both sides, what relationship duties must be put aside, and how to honestly represent this very fact to the client. I believe if more agents truly understood agency then they would never consider dual agency for a few pieces of gold- give me a break.

Lenn- Let's talk about not just from a liability standpoint but also from a business standpoint. There is NOT enought profit to make this a viable biz. We have attorneys who won't even do them because the number of loan mods that get approved compared to the ones that don't- that it is not worth the time and effort. When you look at the highest and best use of your time, how do loan mods fit the bill? Here in Florida you don't need a license to do loan mods. And most of them never get approved.

Selling our listings nets more in profit than loan mods so for me it is a no brainer!

This is an interesting post. One certainly that gets to the heart of the matter:

Who is legally able to do loan mods?

A little bit about me: I was a RE investor for several years before I became a licensed agent in PA. I negotiated many short sales and loan modifications before "selling short and loan mod" became phrases in the public vernacular. When I took on a loan mod client, I guaranteed nothing, took no upfront money, and MOST importantly, did a thorough examination of their financials and hardship reason before I engaged their lender to see if there was a snowball's chance in hell if they could get a workout. Now, my fee was contingent upon success, it was A LOT of work, and about half the time I wasn't paid. (What was I going to do, sue them?) So, in the end, my work ended up being an investment in good will and a way to give back to the community from which I earned a handsome living (again, doing short sales). When I became a licensed agent, I talked about loan mods and short sales as a way to help clients, and was ignored. Of course, my views were vindicated within 2 years.

When the market hit the fan, loan mod's were "discovered" as a way to stem defaults. Of course, every attorney firm that I was aware of before this wouldn't even do a loan mod, they just told folks to pay the retainer fee, declare bankruptcy, and get on with finding another living arrangement. Now, attorney firms have caught onto the fad, realizing that people would pay just about anything, 2k, 3k, 4k, 5k+ to have a 'guaranteed' solution to save their home. Of course, with this kind of money PER client, there's plenty of room to pay referral fees up to several hundred dollars per lead.

Then, there is the lawsuit that California and the FTC filed against 186 loan mod companies in 23 states, claiming homeowners were scammed. They probably were. What's more is that many of these companies are actually referral companies, sending the clients to attorney firms, where they will or will not actually be helped. There are bad apples in EVERY business.

So Realtors doing loan mods? Skip the fad, lest you be called a crook. There's a reason the quote "Let's kill all the lawyers" dates back all the way to Shakespearean times. There are more crooks in that profession than any other. Personally, I like the idea of loan mods, and I like helping people stay in their home, but given the current environment, I LIKE MY RE LICENSE MORE, as it helps me to feed my family.

If you know of someone in default, who wants to stay, IMO, I would tell them this:

1) You can do a loan mod yourself with your lender at no cost.

2) If you are unable or unwilling to handle it, try the Gov't website: http://makinghomeaffordable.gov/

3) If that does not work, seek out your own State's dept of Housing, and see if there are any programs at the state level. In PA, there are several programs, and free HUD approved counselors to meet with for an evaluation.

4) If nothing works, see legal advice from a competent and TRUSTED family attorney.

So, who is legally able to do loan mods? Who knows.....! Maybe the state of CA and the FTC will help us figure that out.

Sorry for the book....

Mike

I am a firm believer in limiting my practice to the scope authorized by my real estate license.

This is a timely post Lenn. I was at a party this week-end and someone said they had just got their home out of foreclosure. Apparently the homeower was contacted by a realtor who proceeded to assist them with the loan modificaton. I hadn't heard of this one before, thanks for the insight.

Linda Metallo, Re/max Impact, Lockport, Il.

Hi Lenn, As always, you are on top of things. I can't believe how some agents leap before they think things through. I used to be a loan officer (in a previous life) and even so, I'm not going to give advice on things like this. Thanks, Lenn!

Jeez - I don't even know what a modified mortgage is. If you've got mortgage questions, call one of my preferred Lenders!

I am not sure how anyone can help a homeowner in modification, the banks offer them to their borrowers, tell them in many cases what they need to make it happen..what more information can a real estate agent offer.

I have not see any agents in my area doing this but it certainly makes sense that not only is this topic outside the scope of our license, but that it would be outside our E&O as well.

An old boss once told me "the road to hell is paved with good intentions"...

As always, great post and great advice.

Thanks Lenn

Patricia Aulson/portsmouth nh real estate

I have refused to do loan modifications when asked despite the fact that I'm an attorney, a real estate broker and have many years in real estate financing.

I have taken training for loan modifications...will I do them???? No..but I will talk to the bank in regards to what they need as far as documentation..because in most cases...the seller who contacts me either wants to do one of two things...complete a short sale or modify their loan and in most cases they assume they cannot qualify for the loan modification. I do not advise..nor do I actually do the loan modification I just find out if it is a even an option and I can tell you in most cases..it's not!

With loan modifications I highly recommend an attorney and just like short sales not just any attorney.. most sellers hesitate to pick up the phone to even make initial contact in regards to short sales or making a payment arrangement or a loan modification.

All I really do in regards to loan modifications...see if it is an option and request the paperwork. It's up to the homeowner to understand and seek legal counsel. In many cases..the loan is not adjusted enough to make it feasible for the seller to keep their home...or even have the ability to do so...

I can see why some would do it, I worked with an Attorney whocharged $1500 to the bank and paid me $500 to get all the docs and was sending me 15 to 20 a month but I was also getting 7 to 12 listings a month. But now he has put an office in the county and hired a paralegal to do it. I still get the lisitngs at least till he gets a RE license.

But now I have gone to doing a more foreclosures plus my investor pool has got back in the game so I am moving on.

I wouldn't touch that with my neighbor's 10 foot pole!
We did a loan mod on our own home and worked out a "do-able" deal with our lender. I have yet to hear from any of our short sale clients that opted for a loan mod instead of short sale, telling us they had their mod go through.

I want nothing to do with it and I don't think it is worth our time to get involved anyway.

Outstanding!

I have a license to practice real estate. Period.

I have had a few companies approach me... and I don't like the idea. It isn't what I do, and I don't have the time tofigure out the scamsters from the maybe not scamsters...

Can't imagine offering advice to someone about their loan. I would advise them to seek advice from an attorney, accountant, mortgage broker, anyone but me!

When we start charging for things that we have not been completely and thoroughly educated in we are crossing a line.

Hi Lenn -- As always, solid advice. One should never work outside of their competencies.

Lenn

I am a degreed accountant, I worked for 10 years at a law firm that practiced Tax Law and Real Estate Law as well as had a Title Company.

But in no way would I ever think of offering advice that was outside my scope.

I have read as much as I can get my hands on about the loan modification process but only for informational purposes.

In fact, I had a floor call the other day from someone and I was strongly encouraging them to go to their United Way and find out who the REAL Consumer Credit Counseling agency is in their area to get the advice they needed.

Me offer advice on loan modification? I want to keep my license.

Doesn't it make you wonder WHO (what type of person) would get into this new, slick sideline . . .

Agreed. So what's the diff between a deed and a deed of trust anyways? ;)

Len, I am, and always have been a firm believer in an arm's length relationship between agent and lender. Like you, I see a lot of opportunity here for agents to lose their licenses. Thanks for using your "bully Pulpit" To make people aware.

AUG

2009

Jim. I see risk for agents and their brokers.

Greg. Funny.

Deborah. I wonder if they know that it puts them in a business where you can't charge upfront in many states?

Jayne. I agree completely. Even those of us who could analyze the loan mods offered by their mortgage company are working outside our license.

Cris. Thanks. Agreed.

Tni. BINGO! Even folks with credentials to represent consumers in loan mod are not generally making this a service they would offer or charge money to do.

Jim. I see risk for agents and their brokers.

Greg. Funny.

Deborah. I wonder if they know that it puts them in a business where you can't charge upfront in many states?

Jayne. I agree completely. Even those of us who could analyze the loan mods offered by their mortgage company are working outside our license.

Cris. Thanks. Agreed.

Tni. BINGO! Even folks with credentials to represent consumers in loan mod are not generally making this a service they would offer or charge money to do.

The crazy thing about this Lenn, is that one of the regular "special featured" blogs (the ones in the orange box at the top of the AR homepage) actually offers "training" for realtors to do their own loan mods and then translate that training into the ability to help others to do the same. I've never taken them up on their offer, even though I am certain that there are quite a few here in the Rain that have. Your warning about this could not have been more timely or appropriate.

Lenn... No problem here with this. I NEVER claimed to be a mortgage advisor, or an attorney. I leave matters up to them when it comes to these issues.

Thanks for the heads up... great post.

It's the same thing as with Short Sales. Many agents feel it's their duty to negotiate a short sale with the bank. Unless they have been formally trained,nothing could be further from the truth. Not only can they be fined 25K, but they can also loose their license. We make it our offices policy to use a third party negotiator on all short sales to avoid any mis-representation. We also have our buyers and sellers sign a hold harmless for any short sale. I think a lot of people are only looking at the "right now" and not the bigger picture. I think you will see a lot of backlash when these short sale sellers start getting 1099'd next year or when the debt they think they got rid of, comes back to haunt them. Here is the scenario: The seller does a short sale. The deal closes without the debt being properly wiped away. The debt gets sold to a 3rd party debt collector for a fraction of the debt. like 5K, These guys hire an attorney to go after the entire debt and whatever the attorney gets, they get to keep half. Often times the debt is over a hundred thousand. The attorney negotiates a payoff of 20K, he keeps 10K and give the other 10K to the investor. 100% profit to the investor! OUCH. Can you see how this scenario might make a seller come back to his REALTOR who negotiated the short sale? Bottom line, if you are not trained in this area, let the professional do it. If you are trained, you better have your diclaimers and disclosures in order. It is amazing how many agents don't get this, when there is a better and easier way to make a short sale happen.

Lenn -

I recently spoke with an attorney who "negotiates" short sales for agents; calls himself an expert. In the conversation he asked me if I do loan modifications. I don't because I believe most people can negotiate their own. He then told me I should work with a local attorney to send my clients loan papers to for a forensic review of TIL and RESPA violations. Apparently this is becoming a popular recommendation for people who are trying to get a principle reduction. Of course there was money in it for both of us. I declined

Funny thing was, he had no idea HUD has changed their guidelines about mandatory counseling and a HUD short sale has to be preapproved.

These "EXPERTS" can get you in trouble - as if we need anymore.

I have not and never will get near loan modifications. I tell those interested to call their lender.

Very interesting - why would a Realtor even think about doing this......dumb dumb dumb!

Is that what the ad on top of ActiveRain is for today? I guess I mean the yellow featured post? I recognize their name in the Inman article. Is that what they are teaching at their "universtiy" loan modification and to charge for it?

Lenn,

It is postings like this one of yours that make me read my "active rain" updates every morning! i wonder how long it will take for the average agent to get the word from their broker (if they ever do)...most will learn about these pitfalls AFTER they are in trouble.

Jim

Lenn--I always wondered about the ethics and liability of agents that were acting as mortgage brokers for their clients as it was allowed in MN. Some would even handle the closing paperwork. I wanted no part of that...Arms length and checks & balances is the best way to handle any business. Loan modification? Not on your life...or my license!

I have received so many emails about this subject and I delete them immediately. Curretnly, I have plenty of business that keeps me busy. But many realtors do not and that's when they open their mouth and get themselves in trouble. I always tell my clients I can assist them with all their real estate buying & selling needs. When it comes to the other aspects I am happy to direct them to an expert in that field. In this case a loan officer or attorney will be better suited than me!

Note to self: Call my E&O provider today and find out if we are covered! I suspect we are not...

Thank you, Lenn for posting on this subject. It is a very treacherous area in which to be giving advice. Some mortgage companies/financial institutions are doing a modification of interest rate but not of the loan and many are assuming they are the same. There are just too many variables in today's marketplace. In Florida, the E&O carriers that I know will not cover any missteps that are outside of a real estate transaction. We tend to forget that we are real estate licensees only and the majority of real estate licensees do not have a mortgage license.

I completely agree....I have a four year degree in finance and I would not want to be offering this service, and I am one of the few that does know how the system works!

Hi Lenn,

So the loan mod companies have now moved to the real estate side for recruiting... they have been working the mortgage side for a while.

It seems like they started by recruiting all of those subprime brokers that went from used cars to loans over night and now they are on to loan mod.

The State of Florida has been having a lot of fun tracking them down and prosecuting them.

Everyone jumped with both feet into loan mod and never bothered to see if the practices were legit.

For mortgage people who originate HUD / FHA loans the rules are clear. You cannot be a loan mod or credit repair rep and originate FHA loans. (See my blog article)

I have never understood the logic that if your business is down that you go into other side things instead of refocusing on your core services.

Lee W.

In California, real estate agents, and most others, are prohibited from performing services to "save an owner's residence from foreclosure." Real estate agents can act as foreclosure consultants if they are bonded. The requirements and penalties can be found in California Civil Code at Section 2945. Failure to comply with its rules can result in a fine of not more than ten thousand dollars or imprisonment for not more than one year. The foreclosed homeowner can bring a civil action including triple punitive damages.

Below is the code section, if you're performing any of the services below, you could have serious problemss:

§ 2945.1 Civ.

  The following definitions apply to this chapter:

  (a) "Foreclosure consultant" means any person who makes any
solicitation, representation, or offer to any owner to
perform for compensation or who, for compensation, performs
any service which the person in any manner represents will
in any manner do any of the following:

  (1) Stop or postpone the foreclosure sale.

  (2) Obtain any forbearance from any beneficiary
or mortgagee.

  (3) Assist the owner to exercise the right of reinstatement
provided in Section 2924c.

  (4) Obtain any extension of the period within which the
owner may reinstate his or her obligation.

  (5) Obtain any waiver of an acceleration clause contained
in any promissory note or contract secured by a deed
of trust or mortgage on a residence in foreclosure
or contained that deed of trust or mortgage.

  (6) Assist the owner to obtain a loan or advance of funds.

  (7) Avoid or ameliorate the impairment of the owner's
credit resulting from the recording of a notice of default
or the conduct of a foreclosure sale.

  (8) Save the owner's residence from foreclosure.

  (9) Assist the owner in obtaining from the beneficiary,
mortgagee, trustee under a power of sale, or counsel for
the beneficiary, mortgagee, or trustee, the remaining
proceeds from the foreclosure sale of the owner's
residence.

§ 2945.7 Civ.

 Any person who commits any violation described in Section 2945.4
shall be punished by a fine of not more than ten thousand dollars
($10,000), by imprisonment in the county jail for not more than one
year, or in the state prison, or by both that fine and imprisonment
for each violation. These penalties are cumulative to any other
remedies or penalties provided by law.

This issue is discussed further at  http://www.forecloseddreams.com/the-accidental-foreclosure-consultant.

Lenn, great post! Unfortunately, I've seen many agents freely give legal and financial advice without the proper credentials - not only on loan modifications, but short sales, taxes, etc.

Lenn, Thanks for a great post. I am happy with my hand in ONE cookie jar. I don't even want to get caught with myhand in lenders cookie jar. That has to be career suicide for any Realtor; It definitely is against the meaning of being a REALTOR -- it may even be illegal -- isn't that the path to FRAUD. I will definately be reposting this one!!! :)

I have a do it yourself loan modification platform. It is not a scam. It allows a borrower to create their own documents for a much lower (thousands lower) price than the typical loan modification company.

I also have a license to do mortgage banking in three states, a requirement for doing loan modifications after 2010.

I don't intend to do mortgage banking ever again (after 21 years) and I no longer have high hopes that the do it yourself loan modification program will help anyone.

The problem is, banks aren't doing them . . . In the New York Times today (8/10) http://www.nytimes.com/2009/08/10/opinion/10mon1.html?_r=1&th&emc=th/ there is another article explaining that the banks make more money OR take fewer losses, and take them Later, with foreclosures. The $3,000 incentive from the government to do the modifications is, apparently, beans when one considers the income from a foreclosure:

Late fees, legal fees, and anything else to tack on to the balance

Title exam fees at the inception of the foreclosure and at the sale, by title companies OWNED by the lender

Appraisals at the start and finish, and on and on . . .

The Times goes on to say that lenders may in light of the pressure they are getting from Washington, ramp up the number of modifications they do, but for loans they expect to go into foreclosure no matter what . . . so, they satisfy Obama, get the incentives, and then reap the profit of the foreclosure.

The saddest part of the entire article is the remark "the administration still maintains that the incentives will overcome the industry’s manifest reluctance. It also seems to believe that by exposing lenders’ slow progress, it can shame them into doing better. As far as we can tell, the industry knows no shame."

So, I don't recommend you as a real estate agent divert any time or effort to loan modifications - it isn't worth getting a license for if you know ahead of time there is a very limited success rate, and if you aren't already familiar with presenting a loan application (which this is, don't ever doubt it), you're doomed from the start.

I wish all of you the best,

Traci Gregory

I suspect there will be more law suits against realtors before this is all over with....

Totally agree....disclose your expertise only on what you have to and more importantly KNOW. Let the other experts help your clients.

This is good advice. In Virginia, you must be licensed by the State Corporation Commission to negotiate on behalf of persons seeking loan modifications. Any ARs in Virginia who are seeking clarification on this can take a look at http://www.scc.virginia.gov/bfi/news/cc/cc_spg09.pdf

Great post Lenn. Even in this market, agentw who spend the time and effort working their real estate business will reap the rewards. Call me risk averse but no amount of money could lure me into making a quick buck doing something I'm not trained to do and that could open me up to a law suit. Loan modifications are tough to get here in New Jersey. I have clients who are really struggling right now and will most probably end up in a short sale. They've been trying to do a loan mod through Chase and have had a pretty terrible tie dealing with them.

Lenn,

This is a good and needed post. Management at our office brought in a real estate att'y to discuss the ramifications of foreclosure in the state of AZ and personal liability in regards to purchase money loans. After a good heated discussion it became very clear that this was a complex issue and the absolute best thing to do was tel l the client to get in touch with an att'y.

Lenn,

It's hard to believe that any agent would want to jump into that hornets nest. I look upon agents who are listing homes outside their market in the same light. They give us all a bad name because their customer service is lacking if not totally non-existent.

I took several weeks (over 120 hours) of formal classroom training from an attorney friend of mine who has been specializing in RE law, foreclosures, short sales, bankrupcies and yes loan mods. for the past twenty years. I have spent literally monthes researching the whole LM industry because I thought it had some short term upside potential that could carry me through these very lean times.

Bottom line? I'm even more confused now with the appreiciable amount of knowledge I've obained. I'm no dummy nor am I a neophite to the RE industry. I'm an experienced developer, licensed general contractor, licensed manufactured home contractor in four states, licensed manufactured home dealer, Realtor and soon to be RE Broker and I'm still unclear about many the nuances and technical details relating to LM's. It is definitely a specialty that should be handled by experienced RE attorneys with years of experience.

In fact I know enough about LM's to write a nice little post about it so look for it and I will give you some very factual information about what I learned.

Ralph commented on Foreclosure Consulting... mostly this does not come into play until an NOD has been filed. Not only should a realtor never advise someone to become delinquent on payments so that the lender will talk to them, even smart loan mod people do not recommend this or even wink-wink at it. Great post.

In the state of CO all mortgage brokers must be licensed and in this state only a licensed mortgage broker can do a loan mod. So I guess we don't have this issue in this state anyways. And IMO, i don't want to do them anyways, the are worse than a short sale to negotiate and many do not go through.

Our Housing Counseling Agencies here are part of a pilot program to provide loan modification services to people facing foreclosure. The cost to the home owner is 0. They have been successful in helping some people. I send anyone seeking loan modification to them.

Please be advised there are also sale lease-back, with option to buy scams going on. I saw one where a "tier-one investor buys the home cash and holds on to it 30-90 days and sells to a tier-two investor who will hold for the remainder of a two-year period... the former owner can buy it back at any time..." Although ostensibly the purpose for the multiple investors might be about getting a sweet deal by buying the short sale cash and then having someone getting a loan (which feels a little fraudulent in the first place), it more so seems to be so that when the original buyer goes to exercise the option to repurchase their home, the title documents do not show person A selling to B and then back to A (intentionally avoiding that again seems fraudulent).

Interestingly, while at Inman this past week, the guys at Foreclosure.com said they were the first to get permission to help people do a sale lease-back with option to buy - so straight A to B and back to A. Them I might believe... bears looking into.

Lenn, I got this in my mailbox after I had posted my comment:

loan mods

I crossed out the name of the offending part because, as I said in my earlier comment, they are rgularly featured in the orange box on AR...

I have never understood agents who also work as the lender. In Texas that is done quite often but to me it is a HUGE conflict of interest. I thought it was a conflict way back when before all this mortgage stuff started happening and I personally think it is an even bigger conflict now!

Lenn,

Great information! I had many so-called modification companies coming to me in the last half of 2008 and 1st quarter of 09 trying to recruit me/pay me to offer their service. Each one was a scam which I took no part in. Now I see they are going into the Real Estate Agent pool. Don't swim! Sharks in the water! As a licensed mortgage originator I wouldn't risk being associated with these groups and potential problems. I've seen some who decided "to chase the cash" and now they are starting to see the cost of their decision. Another growing and to me a disgusting trend, is organizational groups who are holding seminars offering modification help to those affected by the economy. A past client asked me to help his sister who attended one of these seminars. She didn't feel right about it, wanted to check it out further but was about to sign on since she needed help. After talking with her and doing a bit of research, this organization wasn't providing modification help. They were recruiting PROTESTERS for their cause! I was able to provide her with some budgeting advice, a little bit of focus and a simple refinance was what she needed.

Out of these tough times, hopefully the true professionals in ours industry will soon be recognized by their hard work, honest advice, and taking care of the client the way you would want to be treated yourself.

In many markets times are tough and a few agents are doing anything to stay in business. Some of those are going to find it would have been easier and less stressful to find another career. Some are pushing anything they can find and may be in violation of RESPA too. It is easy to sympathize with those in difficulty until they do something they know, or should have known, better to get involved in.

Marchel. I agree. There are no rules that cover it.

William. I linked to that post on Inman. That's where I read the original article. I disagree with Ms. Ross advice that agents should consider this for additional income.

Robert B. Lease options are also a field where scams abound.

Kathleen. Smart move. Avoid the risk and let the experts do it.

Tatyana. Good for you. The risk isn't worth the modest income.

John and Janice. Me too. I understand the matter. I just know it's outside the scope of my license. Besides, the loan modification guidelines are different for each lender, program, etc.

Fran. Another risk taken when customers should be referred.

Patrick. That is good advice.

Alice. Chase is very conservative. Probably one of the most conservative. I wouldn't expect much.

Sarah. Very interesting. Thanks for the link. I'll take a look at it.

If Realtors would educate themselves on the code of Ethics and stop giving mortgage and legal advice, they would be doing their jobs. This article has some very good advice for everyone in the real estate business. Thanks for the reminder.

Hi, there are a lot of really good commits out there. In California you have to be RE licensed and or registared with the Attorney General. As a Real estate licensee we have to have a advance fee agreement approved by the DRE or there can be no up front fees charged unless you have the agreement. There is no doubt it is serious business wjth the state. if your expertise is loans and you know the ends and out and have negotiated outside of the circle of FHA/VA then there might be a chance you can do them safely. The problem is so great that the the FBI had raided an attorney's office in Orange county and shut it down. This attorney had practiced Real estate Law as a Specialty for over 20 years from what i was told. Every real estate broker that dealt with him was in vestigated. He was a n attorney! so how safe do you think we are? on the other hand these people that need help and do not use a professional negotiator are the getting the royal shaft from the bank ...,Oh I'm sorry Mr homeowner you have half the income we will give you a forebarrence, or add what you are late on for the last 4 months into 6 easy payments on top of your regular mortgage". I'm sorry if i sound sinickle but the reality this has happened to several friends.

The current servicer is the best place to go for a loan mod.... it's scary that you would post that most realtors don't know the difference between a deed and a deed of trust....

I'm sure this post will save people from making the mistake of meddling with loan mods...

It would probably be a wiser idea to flip burgers on the side than it would be to delve into loan mods...

Dennis. Totally agree.

Susie. Indeed. I suspect that there will be many lawsuits against a lot of folks before this mess is over.

Traci. Wonderful information. I agree with your advice to stay out of this field.

Jennifer. Thanks. I love reblogs.

Yevette. I believe as a buyer's agent I can represent buyers in short sales. So far, we're very successful. I am not licensed to give loan mod advice.

Ralph. that pretty much covers it for CA.

Lee. You're on the ball. Thanks for the link.

When you are a hungry agent and you first hear about loan mod"s, you get excited and think "Yea this can help bring in some quick money" there is even a Real Estate school in a Big City, SIN CITY, that will take your money and teach you how easy it is. iT ALL SEEMS SO SIMPLE. Write a hardship letter, do a budget. and ask for a modification. If they don't get the mod approved, you get a Short Sale listing and a client who needs a place to rent because they are either going to sell or lose the house and they still need a place to live. Now is it legal or ethical to try and legitimately help someone and get paid for it? It all depends on interpetation doesn't it? Can We get sued? Yes. You can get sued for just leaving the house and you might get sued for staying home? I agree every Broker gets to make thier own rules. I agree one should be careful. personally I offer help and I don't charge. I make it clear I don't give Legal or Financial advice. I just let people know some of thier options. If I can help them Keep the house or with a Sale or Lease which I believe is what we do as Realtors, and I can make an HONEST living I think it's not just ok but a Good Thing to do.

Just my opinion. The great thing about Blogging. We get to say what we think.

Lenn thanks for the post and the caution you advise. Yes there are Scammers who ruin every good thing. Look at this whole mess. Wall Street, Real Estate and Government!

Cheri. Good for you. I know how the system works and I see a lot of risk for agents.

Lynn. Indeed. I'm fill out that E&O form every year. I know it would not cover this.

Lenn... Well said... I was contacted by someone from AR about loan modification.. I told her that I saw a huge conflict of interest not to mention perhaps a huge ethical problem. But then I also don't think any Brokerage should be offering escrow , title or loan services when they are also in the business of selling real estate.

I believe that over the next few years the current administration will be taking a hard look at companies with multiple lines of business under one Broker. Many of the abuses that happened in the boom years were because there were no out of house resources used that might have questioned some of the worst of the deals that were made

We (Realtors) have enough bad reputation to get involved in that.

Lenn, Your post is very timely indeed. I have seen many agents call themselves experts with short sales, HUD, foreclosures and the like, who have never done one.

I value my license. For all things financial see a banker, a CPA or an attorney who specializes in the area. I would never give advice other than to say "You need to get competent advice".

Great advice! It's easy for a Realtor who prospects and farms to find folks who are upside-down in their mortgage or recently unemployed and soon to be in default. Although it's in our nature to want to help them, the best help for them is to contact their lender and start the loan mod process. Once they find out that they are not eligible, maybe the Realtor will get the call to list a short sale. Even that option has pitfalls for a Realtor. If the owner can make payments, but refuses their obligation, now everyone is involved in a fraud against the lender. Ignorance is no excuse.

This is a great discussion! Thanks for the post, Lenn

Do any of you know of any successful loan modification, where the principles were reduced? Or just spread out over 10-15 more years that's not loan modification.

Great post!! It's already hard enough to keep ourselves out of trouble practicing real estate with so many areas where we can be sued, why whould anybody venture in counseling a client on the modification of their loan? That's too risky and not worth it to lose my license!!

That's why I always tell my buyers that their real estate transaction will consist of two parts: the real estate and the mortgage, we work together but we do not interfere, so if they have a question regarding the house they should come to me and if it's a questiong regarding their financing go to their loan officer.; it keeps everyone out of trouble.

Thank you Lenn!

Yami Furlong

I agree! That is why I have stayed out of that particular line of advice. There have already been lawsuits against real estate agents in regards to this very situation.

Recently I took the exam for my Broker's License (and passed). The exam included questions about financing. After the exam I was reflecting on the questions. The correct answer to some of the questions shold have been "refer the cliient to a lender". I am a realtor, not a lender and if my client asked me some of those questions, I would refer them to a lender and not answer the questions.

This is just one of many ways I've seen posted around for agents to lose their license. Hopefully, Lenn, most will follow your sage advice.

Great post! We have a license to assist in real estate sales, not loan modifications. All lender's modification terms are different. We can only suggest to our clients to go to their lender to find out what to do.

Lenn: Great way to bring attention to a very important issue. I noticed that several comments said to contact the mortgage broker. A few of my clients contacted their mortgage brokers for loan modification and were advised that they do NOT do loan modifications. The clients should really contact the Loan Modification, Loan Retention or similar departments with their lenders rather than the regular mortgage brokers at the bank. Unless, of course, the banks changed their policies recently.

There are many that are not skilled at negotiating loan mods and they should stay out of that part of the business however, there are those of us that are skilled and have helped many homeowners avoid losing their homes.

There are a lot of scams and a lot of unscrupulous people pretending to help homeowners but that does NOT mean that all the apples in the cart are bad.

There are a lot of unscrupulous real estate agents and I've met several that should not be in the business at all. That doesn't mean ALL real estate agents are bad.

The sad part is that there are too many times when I try to pick up the pieces of a situation that a lender has practically forced on a homeowner. These days everything is CALLED a loan mod when in fact it is nothing more than a forbearance or a repayment plan - do you honestly think that the average homeowner evens knows what to ask for - the words they know are : lower payments - lenders put a band aid on the problem and the homeowner gets a TEMPORARY reprieve.

Oh, I digress.. Mmm, back to the point. Yes indeed, if you are not totally skilled in this area then stay out of it. Even with proper skill, you must use disclosures - just like in "normal" real estate transactions.

Hi Lenn,

I agree with you and Erica that clients hear what they want to hear.

Also folks when Lenn speaks we all need to stop and listen.

Thanks,

Brenda Swigert,e-PRO

ReMax Unlimited West Chester,OH

www.BrendaSwigert.com

Very wise advise Lenn. I do not touch or do anything out of my scope for the sake of the license.

Hi Lenn, I meant you can represent the clients for real estate matters - I was just saying that many agents like to give legal, financial and tax advice when they are not qualified to do so (e.g., shortsale, loan modification, etc). Although, I know there are licensed attornies and CPAs who are also real estate agents - but then you need to exercise care that you are acting in the capacity for which you were engaged. Yvette

Thanks Brenda. You're a peach.

Wendy. All that you say may work for some. However, even for the knowledgeable, the job may not be permitted by the state licensing authority. Or, may require a license to offer these services. I believe it's a slippery slope for agents.

Silvia. Funny. Agents don't even know to whom to refer a home owner.

Linda. Right, or an attorney.

Roger. So far about 160 have.

Lenn, another great post. Stick to what we know!

Lenn,

You brought up an excellent point and many more can be made. I am amazed at what I hear and see other agents do. We need to be careful not to forget our boundaries. When advising our clients it is best to follow up with a letter or email.

Lenn, I agree wholeheartedly!

Lamar!

Lenn:

I think differently. I believe that a real estate professional should be able to offer all related real estate help. This includes loan modifications. This service works.

See Sample Loan Modification Results

Not everyone wants to sell their home. This is not the best time to sell either. The question is, should this clients sell on a short sale or be foreclosed. Either way, most likely they will not be able to buy a house for a long time or ever again.

Look at the sample results from the link above. Plenty of mods result in rates such as 3% interest only for 3 or more years followed by 6% PI (or less) for the remainder of the loan. Is that a good deal or what. Real estate is not just about selling properties. Is a about providing solutions to owners of real property.

Everything related to foreclosure and default is a high stigma business. I can see why many people don't like it. You will see that right now plenty of realtors not widening their services and expertise are having financial problems. In fact many agents I know are getting mods. Why not. Is 3% interest only is a good deal or what?

I am a mortgage broker and I wouldn't do it either. I don't think the issue or key to success is knowing about mortgages.

But the realtor people who I know decided to jump in consider it a way to possibly get the property to list if they can't help them modify. While they say they are only charging a small upfront fee, much less than those who are taking advantage of people, according to them, I am hoping to stay away from them as much as possible. This definately did not seem right to me.

Why as agents do we try to be all things to all people?

In MARYLAND there is also PHIFA (Protection of Homeowners in Foreclosure Act) to consider and PHIFA carries criminal penalities along with REC actions. It's why I have a team of 2 lawyers and a CFP to send clients to.

An agent who doesn't understand financing shouldn't be in the business . What would have happened if we had actually made sure some of the buyers had actually understood the terms of the loans they were getting into - maybe there wouldn't be a mortgage crisis now.

Personally, I won't even 'qualify' a buyer - they are sent to a loan officer (too many programs and nuances with income, debt, credit, etc). Do I understand the majority of it - yes... but I am not an 'expert' on financing let alone loan mods. Have I called a loan officer an idiot to his face when he told a client to close credit cards (35% of a score is directlly related to card usage and percentage of available credit) - Yes!!!! And I told him to take the same course I took. Did I tell the client not to close the card (No) but I did explain what 'might' happen if they did. If I knew what the scoring formula would actually do - I could be rich (and probably in trouble with Fair Issac on patent issues, etc)

There are professionls out there (and not real estate agents) who can help our clients/customers - we need to be referring like crazy.

Thanks, Lenn for the article.

We as Realtos have a chance to get involved in many things we're not supposed to.

When it comes to taking loan applications, getting a cick back on flooring, a free processor in return to title referral and so on... my answer is always the same: I make a good living selling real estate! I And I live the rest to other professionals.

It's how I keep my hands clean!

I just checked my license and it says, "Real Estate Salesperson". I tried as hard as I could to rearrange them letters to spell "Loan Modification Expert", but for the life of me I just couldn't do it...best I could do was "Splatter Release Season"! Well, I guess we won't be doing any loan mods any time soon! Thx for posting this, Lenn!

I am a loan professional and I would't touch it either. I have clients referring friends to me that are in trouble and since I am licensed and in the lending industry they just assume I do these. Not on your life! This is a very specialized area and if you don't know what you are doing, it will (not CAN) lead to problems for the homeowner. I refer all my calls to a specialist in this area that I know and trust. Thanks for finally speaking up!

Oh...I happened to glance at a statistic the other day, can't remember where I saw it now. But, according to this statistic, over 50% of the homeowners that have had loan mods done end up losing the home anyway. If this is true, it has huge ramifications!

This is a little off topic of Realtors helping with the loan mods, but I had a client who tried to do a loan mod with their bank themselves. To make a long story short the bank turned them down saying they made an excess of $600 a month. Well, seller had enough and listed the house as a short sale.

During the short sale process, the seller got paperwork in the mail from their lender about a loan mod deal. At this point the seller had a contract on the house, had moved out and was renting saving themselves about $600 a month. The short sale was approved, with the bank taking about a $65k loss.

The sellers were not behind on their payments when they tried to do a loan mod and if the bank would have agreed to a loan mod , they (the idiot bank) would have lost alot less money.

The plus though is the bank recorded it as a satisfaction of mortgage on their credit so the only negatives are the missed payments.

As a mortgage lender, I can tell you that it has also become risky for us to advise a client on a loan modification. I never attempted, in fact, I have armed my clients with all the right questions and information and have told them to call their lender directly. In my own opinion, it is the best piece of advice I can give.

Lenn - Excellent post! I think we all certainly get the calls from past clientele, friends, family, hoping that real estate professionals are the ones who can help them with their loan modification questions. I point the majority of folks to the http:///wwww.hud.org website. There is a whole section on loan modification and advice.

That being said, i hear a lot of advice by real estate agents that seems to steer people away from loan modification, and towards either short-sales, foreclosures, or check for keys. I often wonder if there isn't risk there as well, since loan modification won't usually result in business for an agent, and can appear a little self-serving to steer them away from modification?

However, that being said, for all of the loan modification hype out there, I've only known of two successful loan modifications which have actually occurred. There is far more delay and apparent games being played by the existing lenders, than any real help being provided.

Great advice!

You are soooooo right about this....

My broker started to go with us in this direction. I said forget it I want to make my money helping home buyers and home sellers. I do mind giving free qualified advise to people that may need it, but generally it is to point them in another direction.

Thanks for the warning, Lenn! I think I saw that article but wasn't interested enough to read it, now I know I should have and point it out to our agents in the office. Thanks again!

Lenn, I agree with you. So, instead of doing a good job with one aspect (real estate) they do a lousy job on multiple levels (real estate AND loan modifications). My wife had a transaction a couple of years ago where the other agent was both the real estate agent AND the mortgage rep for the transaction. To say that THAT transaction was a nighmare is the understatement of a lifetime.

Terry

Hi Lenn, This is a great post and makes you think twice that is for sure!

Hi Lenn, Great info as always! thank you for sharing!

www.charlottelakewyliehomes.com

Lenn, great post. Very topical as it seems that consumers are willing to reach out to anyone in the industry to solicit advice & help with their situation. We have seen numerous Loan Officers who have perhaps had trouble originating new loans turn into modification " experts" overnight. Agents would be wise to avoid this like the plague!

I assisted a past buyer client with a loan modification at their request. The assistance I provided involved contacting the lender on behalf of the borrower, requesting the forms and what documentation the lender required, what the terms of the modified loan were, assisting in preparing a hardship letter, explaining the new terms to the borrower, assembling the documents and doing some faxing and emailing. The whole process was very simple and straightforward and was completed in a few days. It was very similar to preparing a short sale package. I was offered compensation but I declined to accept it and asked only that they refer me to anyone they knew who needed the services of a professional real estate agent. Were there any special skills or training needed to do the things I did? Absolutely not. Was there value in the service I provided? Probably so. The fact that I am a REALTOR should not prevent me from providing this type of assistance whether it is for a fee or not. The decision to accept the new terms rests with the borrower

Many people experiencing financial problems feel overwhelmed and only need someone to provide some clarity and hand holding to get them through it. These people were so thankful for the help I provided that I have now earned their trust and the right to their future referrals.

If we REALTOR's are afraid to step outside the box to help people stay in the homes we sold them then we might as well tell them not to call us until they are ready to sell.

I would never dream of telling someone I could help them with a loan modification. Let the experts in that field be the experts. We need to stick to listing and selling. Why put yourself in harms way, it's a fine enough line to walk without adding another liability.

Recently, we had a risk management class, & offering advise on loans & loan modification may put us in the category of practicing law..... "I object".... sustained!.

The safest thing for my career is to refer the client / potential short sale listing to seek legal advice.... ie is the loan recourse or non-recourse etc... then & only then can we work our magic

Lenn, another great post. I recently was approached by an individual who was trying to 'assist' a homeowner but needed a Realtor. I politely declined - not my bag.

Lenn,

Thanks for bringing the whole issue up. It is a "smoking gun" and I don't believe in carrying guns. There are government agencies and non-profit agencies to refer people to. If anyone wants that info, email me at realtorcarolriley@gmail.com.

Carol Riley, Albuquerque,NM, Huntington Real Estate, http://www.carolsellsnewmexico.com

Lenn - in CA we are prohibited by the Dept. of Real Estate from engaging in this biz unless we are certified by the DRE and post a bond. So far statewide there are about 9 companies that have complied. Because it is such a big problem our Attorney General initiated a program wherebye anybody offering loan mods has to post a $10,000 bond with him. We specifically tell clients that most people offering this service are scams and virtually ANYBODY charging up-front (with the exception of a few attorbeys) is a scam. I haven't read the Inman piece yet but iof that's their line, they're doing the industry a disservice.

I agree. Not my department. In Colorado Mortgage Brokers have to be licensed. That is where I would send my clients who needed loan services. I am not a lending specialist, an attorney or a CPA.

When people come to you and ask you about loan modifications don't you refer them to the government websites and the free non profit resources? When they come to me I at least let them know what kind of options are out there? I don't know if CYA means turn your back?!!

"Because it is such a big problem our Attorney General initiated a program wherebye anybody offering loan mods has to post a $10,000 bond with him."

It is a $100k bonf, not $10k, and Inman has been doing a disservice to the real estate industry since Brad Inman said before he started HomeGain that the Internet would be the end of the traditional agent.

All the caveats are there !! Wake up and KEEP YOUR LICENSE!!!

AUG

2009

Great Blog Post Lenn, I only wish that others in the industry had as much sense to stay within the boundaries of what They Do Best and are Experts At.

This is why I Refer my Pre-Qual'ed Buyers to an Expert Experienced Realtor and I do not get greedy and do both the loan and the sale. I Am a Licensed CA DRE R.E. Broker and a member of the local PWR Board of Realtors to access MLS for Comp's and market data, etc. But Pinnacle Mortgage Group Does Loans, Not list or sell Houses! By the same token, I Agree that Real Estate Agents and Brokers not attempt to be Jack of All Trades on the flip side of this coin - Especially with regard to Loan Mod's!! A Steep and Long Slippery Slope.

It's sad that the sub-prime scammers who all fled like roaches at the beginning of the "The Meltdown" have crawled and crept back into the mostly unregulated new frontier of Loan Mod's, pulling their scams once again. The people they screwed 2 years ago, they're screwing one more time for good measure?? A few bad apples can upset the entire cart! Mortgage Brokers are thought of now in the same light as Used Car Salesmen. That's the sad cold hard truth, making it that much tougher for the good legit one's who are trying to stay alive out there.

I have personally arranged several loan mod's (one on my own home) and each one has been very different from the next - problem is each lender is vastly different in how the run their Loss Mit. Dept's. Most are being handled by twenty something's with a weeks worth of training. You never talk with the same representative twice and you will never get the same response or answer to any specific question from any two of them. Bottom line is; they really are not Worth the time needed to invest to get one accomplished from start to finish (can take 6 months!!) for any amount of fee paid after it's been arranged. AND risky trying to Collect After the Fact too!!!!

I for one cannot wait till the GSE's And Wholesale Lenders left Actually Do Start really lending again and quit this messin' around with the HVCC AMC nightmare; Appraising Properties with AMC's in PA when my loan is in So Cal. Using only 3 comp's and Matching values with the Lowest Comp of the 3. No Rebuttals??! You're deal is just Dead. Happening on Purchase deals everywhere too. Love to hear others comments on anybody having success with the AMC's???

Lenn, I believe the answer lies with the E&O insurer as you phrased the question. Will the insurer represent a licensee in a case where the licensee has given out improper advice on a loan mod? I say no. This would leave the licensee in deep trouble if a lawsuit were to develop. Stay away from the loan mods and refer them out to someone competent.

I think Real Estate agent have enough to do, and are not qualified to be bankers. Leave the modification to the experts!!!

Lenn, thank you. I believe that licensees need to recognize their responsibilities and stick to those that they are trained and educated in. Let the other professionals handle their area of expertise.

Hi Lenn,

Another super post. I think this boils down to desperate people do desperate things. Lots of agents can be lead down the wrong path because they have no income. Sad but true. We must always remember ETHIC no matter how much or how little we sell. Ethics are forever sort of like death and taxes.

Thanks

Kelly

Having worked in mortgage servicing for 7 years prior to obtaining my license, I feel like I have knowledge that I can share with my clients who are in a distressed position and trying to figure out what they should do.

Since I am first and foremost a real estate agent, I would not dream of giving someone legal advice and asking for compensation for it.

Although I considered being a loan officer as well, I quickly decided against it. First there is no better way to lose a client than to mess up their financing. Second, how can you be an expert in one thing if you are advertising yourself as an expert at many things? People simply refuse to believe that anyone can be an expert at more than one thing.

I don't blame others for trying to supplement their income by adding complimentary services, but I feel they could make more money by focusing on one thing and doing it really well. People don't mind paying a premium if they feel they are receiving value for it.

In the end, who makes more? The general practitioner or heart surgeon? The neighborhood attorney generalist or the board certified specialist?

Jack. Excellent. You should have made that a post. "Focus" is the key for me. I know what I do. I do what I do very well and I leave the rest of the business to others.

Field of competence - those are the buzz words that will get you sued IMO.

Jack #201 - I would not dream of giving someone legal advice & asking compensation for it - Yeah, that's the whole point of this post dude!

Awww..... why not wait and let the state real estate board decide your fate someday!

Kally. That is true and sad at the same time. Rather than taking a job, agents who offer services outside their competency are risking all.

Johanna. In my area, a license is required to provide mortgage mod services.

Susan. Agreed. Even if we have the knowledge, we may not have a good outcome and that's where the risk comes in.

Dan. Indeed. I don't even refer. I advise folks to contact a real estate attorney.

Lyn. Thanks. There is sufficient risk in giving real estate advice. Loan modification advice carries extreme risk for real estate licensees. Thanks.

I couldn't agree more. I never take it upon myself to play the role of "mortgage broker". I am a real estate agent!!

Not only should we be paid for what we know, we should only do that which we know.

Good advice, Lenn. It's timely and it's crucial. Can we go fishing now?

AUG

2009

I have clients who've written on a short sale, only offer, but by the time the agent met with the seller, there was a second offer. THEN the seller hears that there are new loan modification programs available, and puts everything (everyone) on hold to investigate whether or not she'll qualify... So we're waiting...

Realors are trying to act as mortgage brokers?

I can't even imagine wading into that! You just want to pull that Realtor aside and say are you crazy?

AUG

2009

Raj. Or, Realtors trying to act like expert anything but Realtors.

Gretchen. Where was she in the beginning, under a rock?

Thanks Len, Excellent post! That's the next big mess in the industry.

Marcia. Sadly, I suspect that you're right. Agents will take the fall for the perfidy of the banks.

Lenn,

You're right, most agents aren't qualified. Neither are most lenders, frankly. I have long been an advocate of taking back the task of prequalifying buyers by real estate agents instead of sending the buyer off to a third party lender who then claims the buyer as their client and does everything from mislead the buyer in to a bad mortgage or actually steer the buyer toward a FSBO owned by the lender's friend. Both things have happened to me in the LAST 2 MONTHS. My belief is, that if you're going to be in the business of selling real estate, take the time to master the process, quit being lazy and ignorant about your business because others will, at some price, do your work for you. It's a disgrace to send a buyer into the fray alone to seek loan modification simply because we haven't invested the time necessary to adequately represent them. Lenders are preying on the uninformed, timid, hat-in-hand consumer who is seeking a modification. Their track record of not responding, handing the client off to a clerk, and simply saying no tolegitimate requests for help is enough reason to become an expert in this field and, if necessary, charge for your services. Let's quit being afraid of being a pro.

Dennis.

I don't rely on loan officers to qualify my home buyers. I do that myself. They are ready to make a loan application when we need a lender's letter to write a Contract of Sale.

Thanks for your comment.

Great advice Lenn! I would never think about giving loan modification advice...I know that I don't have the knowledge necessary for that and I would never lead my clients on thinking that I do.

Have a great day,

Anne Rains

Anne. Good for you. Many of us who do have the knowledge don't either.

#79 said: "If you know of someone in default, who wants to stay, IMO, I would tell them this: 1) You can do a loan mod yourself with your lender at no cost."

Simple. True. Well said...although I haven't heard any loan mod success stories yet in my SOI.

#190 said: "We specifically tell clients that most people offering this service are scams and virtually ANYBODY charging up-front (with the exception of a few attorbeys) is a scam."

+1. I know a couple who gave upfront money TWICE to two different loan mod companies who did absolutely nothing for them. Why they wouldn't listen to my advice about not paying upfront fees for a loan mod, I don't know...it's probably because the loan mod company was telling them exactly what they wanted to hear...and besides, I'm just a real estate broker friend. :)

You might be glad. They get to realize that you were right when it fails. and you get to keep your friend.

You're right, Lenn...they might have thought I was preventing them from getting the magical loan mod. I just don't like to see anyone lose money to the scammers and keep them in business.

AUG

2009

Souza. Sometimes we can't help folks. If we are not in a position to grant the loan mod, if their attempts fail, they'll blame everyone but themselves.

AUG

2009

My advice is for realtors to practice only their profession.

Some of the the biggest blunders causing fingerpointing is when realtors "refer" another business.

Dont refer a mortgage company
Dont refer a Home inspector
Dont refer a closing company
Dont Refer a termite inspector

And please, dont bore me with the "i provive 3 names" Thats bull and we all know it

Michael. Au contraire.

I recommend loan officers, home inspectors, title companies and termite inspectors.

I'm a buyers agent and my buyers rely on my experience and advice in all matter. However, I refer the same vendors that I use myself.

I'm not about to send home buyers with no or limited experience to the phone book or friends or neighbors who don't have my experience or knowledge of real estate transactions.

Of course, if a buyers has a vendor they wish to use, then I will meet someone new. Through my buyers is how we meet many good service providers.

I agree with Lenn wholeheartedly. (BTW, great picture, Lenn!)

I recommend vendors that not only we use ourselves, but that other clients have said treated them like gold. I don't tell clients they have to use them, only that these are recommended service providers that are trustworthy and will bend over backwards to help. They are certainly free to use whomever they choose, but the vast majority of people have no clue about who to choose for a lender, inspector or any other service, and almost without fail they welcome and appreciate our recommendations. If we ever hear that a vendor we have recommended has provided less than stellar service, they are removed from our list. And we have NEVER had any issues arise from any vendor recommendation we have made, and only once have we had to stop recommending a vendor.

Lenn, did I mention I love your new picture? :-)

Pat and Wayne. Agreed. I don't know how we can profess to be a Buyer's Agent or Broker without providing good recommendations to get us through the transaction. I believe it's part of our duty of fiduciary.

Granted, agents with companies that take kickbacks or have affiliate relationships are in a quandry. Not me.

AUG

2009

I am so glad I did not just delete all the 600+ emails yahoo had waiting for me today. yes its been a few days since I checked it, but what long list. wish I could turn off some of the notifications as 90%+ were AR

another great post LENN. There is a lady in my office, who seems to have her hands in everything.

a. I think she is spreading herself too thin

b. She is opening herself up to too much liability. Try to be an expert in everything and you fail at everything IMHO. Specialize and outsource the rest. You simply can not be everything for everyone. Its impossible. Pick what you are best at, or love the most, and build a great network

Daniel. Agreed. In Maryland, one of my states, it's illegal for agents to claim to be an "expert" something unless they are. With mortgage mod, a license is required and it's not a real estate license.

AUG

2009

I would be the last person trying to do a loan mod. My business is selling real estate. That's more than enough for me

Mark/ Agree. Me too.

AUG

2009

As I understand it the mortgage company is the one that eventually decides on when or if they will do a loan modification. Outside professionals or businesses are trying to sell you on the fact that they can provide support as to why this loan modification should be done.

What a way to loose your license and get sued all at the same time. I can't imagine an agent not understanding this. I would imagine an E&O Insurance company would leave you hanging in a new york minute if they found out you are practicing Mortgage advice on the side.

AUG

2009

Charles. Indeed and sometimes they violate RE license law when they do so.

Jerry. I believe that E&O would leave you hanging anywhere for these acts if they violate license law.

OCT

2009

With all due respect this is bad advice. Real estate agents are providing loan mod assistance for 3 general reasons:

To make money on the loan mod

To generate short sale listings

Because they are asked

As long as the agent has educated themselves on the nuances of loan modifications and operate within their state laws, they would be doing the market a disservice not to offer assistance (paid or not). The fact of the matter is that loan mods are not rocket science especially once federal guidelines were instituted.

Now, if you really want to risk your license, go ahead and learn nothing about loan mods and list and sell a home short. Only later to find out that the homeowner has contacted the Attorney General and filed a complaint against you and your Broker because they learned, post sale, they were eligible for a loan modification under the Making Home Affordable Plan, BUT their Realtor never said anything about it.

Good Bye license, Hello law suit.

All the best,

Wayne Robison, www.ForeclosureU.com

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Lenn Harley, Real Estate Broker, Virginia & Maryland

Leesburg, VA

More about me…

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Address: Lovettsville, Fairfax, Arlington, Alexandria, Stafford, Woodbridge, King George, Fredericksburg, Leesburg in VA., Rockville, Laurel, Columbia, Baltimore, Waldorf, Frederick, Eastern Shore, Bowie, Harford, Annapolis in MD. , Maryland, Virginia

Office Phone: (800) 711-7988

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Maryland and Virginia real estate agents and brokers serving buyers and sellers with experience. Search listings in Maryland and Northern Virginia and get daily updates of new homes for sale by e-mail. Contact Lenn for a tour of homes. REALTORS available every day for home tours. Homefinders network of experienced agents and brokers includes new home specialists, resale specialists and luxury home experts. We can help you with your home buying needs. Homefinders offers discounted 5% listings for Maryland, Northern Virginia home owners. Experienced agents helping buyers and sellers in the Washington Metro area since 1985.

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