Another Loan Mod bites the dust! My New Listing (again!)
Back in the summer of 2010 I listed a home. It was a HAFA short sale deal where the bank had already given us the price and approved the seller, I just had to find the buyer.
We got a buyer within the first week, but before the seller could even sign the contract, an attorney contacted her and told her that he would be able to do a loan modification for her and let her keep her house at a payment she could afford. (remember she had already been turned down for a HAMP mod, that's why we were in the HAFA program!).
Well, guess what? Friday I got a call from her, and Monday evening I re-listed her home. Want to know what the attorney was able to get for her?
Her old mortgage payment was $1,650 per month. The Mod that the attorney negotiated? If she sends the bank $3,200 down, they will lower her payment to $1,634. Yes, you read that right. She gives them $3,200 and they will lower her payment by $16 per month. Wow, that's really a help to her budget I bet!
Don't get me wrong... I think that GOOD modifications are a great solution to what we're experiencing in our market, but some of these attorneys are feeding a line of crud to home owners and giving them false hope. How much did this false hope cost her in this case? $2,500 to the attorney!!! They take people's money and tell them "we'll try" and then when they get no results they say "we tried"
Use this example when you're talking to clients and share with them the success rates that you've personally seen clients have with modifications.
Please share with us what success you've seen in people getting loan mods, also, do you know of ANY non-owner occupied homes getting loan mods?