A new product that my agents are using is saving clients from foreclosure, getting part of their debt forgiven and reducing their interest rate. I really shouldn't call it a product because it's more of a process. They are not refinancing their home. Rather, the agent takes an application with a refundable upfront fee. They have lawyers who negotiate on the client's behalf to acheive a loan modification agreement. They've said they're having a 90% success rate.
Here's the rub on the refundable part of the fee. The fee is fully refunded if the lawyers say nothing can be done. However, if they are able to negotiate a deal and the client turns it down, then they do not get the refund.
That's all the information I have. However, maybe it will be enough to help you do some research if you're interested in the program for your clients.
***Update to this entry***
An Active Rain member asked how this differs from the client contacting the loan servicer on their own. The difference is that the loan servicer won't work with the borrower. For some crazy reason, they'll let the borrower go into foreclosure and then take a giant loss on the house by selling it below the amount of the mortgage. However, the lawyers have had a great success rate for getting these negotiations done. I don't know how. If I did, I'd probably be doing that instead of what I'm doing.
Thank you Bill Gillhepsy for the question.
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Dennis Beckner
Mobile Notary/Home Loan Signing Specialist
(949) 842-7682
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