I got this email today...do you think this is messed up?

Hi,

Just wanted to let you know we launched a NEW vertical a few months ago that is making a lot of people a lot of money.  We are not sure how long this wave will last before the government jumps in and regulates it but it is a good way to make money fast, perhaps for the next year or two.

It is called 'Loan Modification' or 'Loss Mitigation' leads.  We have two specific sites that are generating borrowers whose intentions are solely for seeking foreclosure avoidance.  This means you are getting a borrower that is willing and ready to talk.

I think it is totally retarded that people are marketing this as the "new money machine". And the fact that they say, we are doing this until the Gov. regulates it makes me think that they are doing something with ulterior motives. Attorney firms, my lawyer at least, is in no way concerned with Gov. interruption. If it happens it happens, but we will help as many as we can until then.

I think it is a great new business because there are many people who can be helped, but it shouldn't be pitched as another get rich scheme. Ridiculous, unethical, and down right shameful to be promoting the loss mitigation business for the wrong reasons.

Especially this part "We are not sure how long this wave will last before the government jumps in and regulates it but it is a good way to make money fast, perhaps for the next year or two."

Funny thing is people getting into it thinking its the next get rich quick scheme only to realize there isn't a lot of money in it. I have a friend whose company has been doing it for over a year now, I think they have about 15 full time guys. Tons of app's and deals, but only a small % actually go through and close.

That's because they didn't hire me to audit their loan before they begin negotiating.  Not negotiating a loan mod before getting an audit done is like going to the golf course without clubs.

I have seen job posting for people to work in loan mod companies and stating "active licensees need not apply". 

Too many people are going to jump on this just like the refi boom in early 2000, they are going to make the quick buck without trying(order takers) and when it ends they are going to cry I am not making any money. 

I keep trying to tell people the same thing. There isn't a lot of money in this. Its a way to make a living in a down market. Nothing more, nothing less. I don't plan on doing this in a few years (I'm actually saving for law school of all things), but it pays the bills. The people that respond to ads like the one Kyle posted are still waiting for 80/20 SP to come back or to do a NINA loan. Those days are over. I'm just happy to be making a living even if it is 1/4 of what it use to be.

Agree, anybody thinking they'll get rich off this is on crack. My friends company has good team, and their only doing loan mods. High amount of volume but only a small % actually end up getting done (I think thats the other issue, people thinking every single one will be done no problem). With their volume its enough to survive.

Some moron left a message for me advising that I could be helped.  Let's see I have about 9 yrs left on my mortgage at way under 50LTV.  Think I should call him back?

Yes!  Tell him you heard that some pools of loans are going for 30 cents on the dollar and you want your loan to value modded down to 30% or you're going to trash the house!

That loan pool comment made me chuckle.  I went through the ringer with those kinds of investors about 18 months ago.  What a nightmare, lol. 

I haven't been here in awhile, but maybe I'll hang out here more often and actually participate in these great forums.

MisterVA:

Some moron left a message for me advising that I could be helped.  Let's see I have about 9 yrs left on my mortgage at way under 50LTV.  Think I should call him back?

Send him some spam back

I recently interviewed with a loan mod company in Irvine, CA.  Daily marketing phone campaigns and several reps standing by to take the calls.  They bring in apps, collect money, then hand over to processor for submission.  I was told income potential to be anywhere from $5k - $12k per month. 

A friend of mine has worked there for 3 months and has earned $900

The commission split is 20/80 (80% to the company!) AFTER $1,000 processing fee is deducted.  What a bunch of crap!

Bottom line is nobody is making money and no deals are actually closing!

mel:

Bottom line is nobody is making money and no deals are actually closing!

Sounds like the owner of the company is probably making $5-12k every month.

The legitimate mod companies are closing deals and making money. Why? Because they know what they are doing and their sales people and processors were trained as true mortgage loan officers not order takers.  The same Order Takers who with their lack of knowledge brought down this industry.

I actually have about 3 1/2 days left on my mortgage now.

Kent Mikkola:

Send him some spam back

Very true. Scamming is becoming far too easy in the loan mod/short sale market simply because people are desperate to get out of bad situations. While, employing good loss mitigation company is a great way to get the job done right and effectively, it is extremely important to be careful. Realtors who aren't sure what they are doing should NOT try and do a loan modification or short sale on their own. Do your research and affiliate with a trustworthy loss mitigation firm that knows how to get the best for both the homeowner and all agents/brokers involved.

ADMIN NOTE: Do not solicit in the forum, READ THE RULES.

>>>>>Do your research and affiliate with a trustworthy loss mitigation firm that knows how to get the best for both the homeowner and all agents/brokers involved.<<<<<

A "trustworthy" loss mitigation firm has a single duty to a single entity, namely >>>

The Homeowner, who is the entity retaining their firm.

This is precisely the reason why referral fees, fee splitting et al are not legal for attorneys.

If a loss mitigation firm had to choose between a single homeowner transaction and a broker who refers them 50 transactions a month for some kind of a referral fee, you do see the conflict there right?