Hello My Fellow Colleagues,
It is very common in California and I'm assuming in other states, that a lot of Real Estate Agents are now doing Modifications, is this legal? Are we as Realtors entitle to do Modification Services?
This is what I think, we should all understand our function as Realtors, people trust on us, people deposit their hopes when they talk to a Real Estate, and we should always remember that.
Even though the documentation and the department that deal with this king of request is the same with the lender "Loss and Mitigation" I would recommend to all the Real Estates interested in becoming a "Modificator" to read the new RESPA regulations and if possible to partner with an Attorney for at least the begining, until you gain real knowledge and confidence on how to present the entire paper work.
A real good modification takes a lot of time, efforts and dedications, I've come across to a lot of "modificators" just making things worst.
At the end, if we do our diligencies, people will be thankful and if we don't get a comission for a modification, we will get a referral and you will have that client for life.
Your comments and opinions are highly appreciated.
Thank you
Carlos: I don't know, but there is just something funny about one saying they are a "Modificator." Sounds like something George Bush would say. Anyhow... I think that assisting in loan modifications can make it much more difficult for a Realtor to walk the thin line between being a Realtor, and practicing law. One could open oneself to quite a bit of liability.
Carlos, I agree with Karen Anne. I believe it opens oneself to a liability issue. Real estate agents should stick to what they know best and that is real estate. Leave loan modifications to the experts.
Carlos, Just to reiterate what you said... You HAVE to be licensed by the DRE to accept any monetary compensation for doing modifications. So if you are charging - BEWARE - the DRE is really cracking down in CA.
My broker did quite a few for no charge and she is now getting referrals from a lot of those people. And it's a smart thing to build those relationships for life!
Carlos,
I think it would be great if realtors could do loan mods, if it were done with a deposit in a trust account per DRE guidelines, etc. The problem with partnering with an attorney is 1) this group has already incurred the wrath of the CA Attorney General's office, partly due in fact that 2) the Bar isn't too keen on attorneys doing loan mods in the first place. With more defaults coming, something has got to give. The best solution involving realtors would be to do mods and bill on the back end ONLY if the mod was successful. Sure, one may have a few customers who don't pay, but the referrals would more than make up for that.
Carlos,
I'll withhold my opinion of what I think of loan modification companies but in Idaho, according to the department of finance, you have to have a license and your real estate license doesn't count.
Carlos-
I think Realtors should stick to putting transactions together not doing loan mods. Simply refer them to a great loan mod attorney and move on. Why take on the liability.
Carlos - You and I are in the same market area. I suggest you refer your clients to the fair housing of Orange County located in Santa Ana. They do loan mods for free!
We as Realtors have to remain focused on what we do best. If it is in Loan Modifications then that should be our target of interest and not try to spread ourselves into too many different areas. You are right, it takes a lot of time as I have been successful at completing a few on my own without an attorney for my clients.
The bigger problem is not completing the Loan Modification for someone who is already in a hard spot and taking their money. that is why the FTC has a greater involvement in shutting these shops down, as they should.