All Forum Posts by: Quinn Kiet

A true auction has no reserve. So when you bid and you are the highest bidder, but that bid is below what the bank has set as a reserve (just like Ebay) then they pull you into a backroom, away from the public, and whisper "Sorry Joe, the bank won't accept this, but if you are willing to pay this, then we have a deal".

AUCTION? Yeah, rriiiiiight.

Tell me how it goes, but I don't expect this auction to be different than any other bogus auction.

It burns me up to see Loan Mod "experts" charge $5000 to $8000 to do a loan mod and then somewhere in their contract a clause says "Remember, we are not responsible for anything you sign, please seek the assistance of an attorney prior to signing anything with the bank, and you understand that we are not attorneys, we're just here to analyze your problems."

Geee, would it have been cheaper just to go to an experienced attorney in the first place who most likely will charge the same if not less?

I don't know about other states, but CA laws are very CLEAR on prohibiting advanced fees for loan mods.

Ok, soapbox off. Just had a client come through who paid a "consultant" most of her savings to save her home and when the bank offered a "loan mod" the consultant disappeared leaving her to finish everything herself.

When a house jumps 10% in a matter of weeks and suddenly the whole neighborhood jumps, and then a domino affect back and forth, it's no wonder there was a bubble. Bank underwriters simply "accepted" this phenomena as gospel.

Not talking about the YSP or Origination that's disclosed on the HUD, but just plain ol' fashion cash under the table or "gifts" on your front door type deals.

Blogs and forums make it sound like every top producing loan officer was getting a little something something, but when it comes to investigations, there has not been a whole lot of evidence that this is happening.

I find it pretty much impossible to point to evidence of kick-backs unless somebody is whistle blowing, because where would these payments be reflected in any of the loan docs at closing?

Any urban myths and "stories" from a friend of a friend you guys would like to share?

Yes, I've been reading the regulations and it does appear to be very strictly regulated in CA, as a matter of fact, their are certain bars against receiving ANY advanced fee by a mortgage "consultant" when doing these loan modifications. Check out California's Mortgage Foreclosure Consultant Act at Civil Code 2945.4(a): "It shall be a violation for a foreclosure consultant to:
(a) Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that he or she would perform."

Shocking because I do know a few "consultants" who take these advance fees before completing the workout service. Similarly, the Dept. of Real Estate does not allow their licensees to accept an advanced fee unless the fee has been approved by the DRE.

It's all these complications that had me wondering aloud about how others who are not attorneys are doing this so "easily", but apparently, your responses imply that most of these guys are truly doing this illegally unless they have an attorney on staff.

I'm exploring this path as a source of revenue and was wondering what your collective opinions are, as to the pros and cons of it, from a business stand point.

Obviously, this will be a legit loan modification service. What are the pricing models people are seeing? I was shocked to hear that some of these "services" charge up to 2 months of mortgage payments (between $5,000 and $7,000 in CA).

I'd appreciate your opinions and experiences with these services, either as a customer or entrepreneur.

Real estate litigation attorney here in SoCal. During these times of turmoil is when money is to be made right? Nothing like an inefficient market to allow the veterans to have fun!

I hope to learn much from everyone here and return the favor whenever I can.