What is loan modification?
A loan modification is a negotiated agreement between the borrower and lender. Terms that can be negotiated are; interest rate reductions, fixing adjustable rate mortgages, principal balance reductions, longer terms of the loan, and eliminating missed payments. A combination of any of these terms can be negotiated.
Who qualifies?
Homeowners who have hardship that is causing them to miss mortgage payments and or could cause them to miss mortgage payments.
Why this helps develop the most loyal client.
Though this option does not create a transactionable event for you as an agent, you will have a client for life. If you refer them to a company that successfully negotiates a loan modification that keeps them in their home, their appreciation for you as a Realtor will be endless. The most consistently successful Realtors build their business by referrals and fiercely loyal clients are a rich source of these.
How can you as a Realtor offer this option to your client?
Check your local laws. Because of exponential growth of "Loan Modification Specialist" many less then reputable individuals have been offering this service causing serious oversight and regulation by some States to protect homeowners. Some laws can cause increased risks for you as licensed individual and you may unintentionally violate these laws and expose your self to litigation. Do your research before offering this service to your clients.
A possible red flag for companies offering loan modifications that are less then reputable is a collection of the fee for service up front. More reputable companies are collecting their fees upon successfully negotiating the terms and also provide a 100% money back guarantee.
My partner and I have located a company that has a lawyer negotiated mitigation department. A nationwide network of agents with a business model that makes sense for the busy Realtor. Contact us for more information. Attilio Leonardi sunnykapolei@gmail.com
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