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Loan Modifications and Questionable Charges

Rates remain low, our phones are ringing, and everyone is busy. The only problems we face now are finding lenders with reasonable turn-times. Fortunately, as we have mentioned numerous times, lenders give a strong preference for purchases with respect to turn-times and service. In addition, we have necessarily become much more skilled at gathering every document possible at the inception of a transaction in order to avoid last minute conditions that slow down transactions.

We frequently have borrowers ask us about loan-modifications. We do not do loan-modifications, nor do we recommend anyone who does. One thing we tell our clients, however, is to stay away from companies that charge anything up front to assist with a modification. It is actually illegal to charge anything up front; modification companies are only allowed to charge fees if and when they successfully complete a modification. “Typical fees” for a successful modification appear to be in the $2,500 to $3,500 range.

Another questionable charge we sometimes see involves companies that charge fees to pursue a property tax reduction. Most County Assessors are more than willing to help out free of charge, and they usually have forms on-line that can be filled out and sent in relatively easily. If anybody has clients who need assistance with this, please call us and we will gladly help.

Call Jay Voorhees at (925) 855-4491

Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646