This post, somehow disappeared. Maybe someone didn’t like it, who knows, but I will be rewriting it and will post it back up soon.
Check back later.
Okay, I am going to summarize the post that was here and that was subsequently erased somehow.
Loss Mitigation, which includes loan modifications, short sales, bankruptcy and cash-on-sale negotiations. Today, most people are focusing on the loan modification portion of the loss mitigation strategy. In fact, more and more mortgage companies are beginning to focus on what I call the “sub-prime suite”, which includes FHA loans, debt settlement, credit repair and loan modification. Many companies are finding that if a consumer doesn’t fit into one product they can usually fit into another. This enables companies to increase their ROI by being able to cross sell offers or possible sell multiple offers to one lead.
Let me focus on Loan Modifications for the rest of the post.
Currently there are little to no regulations in the space. There are a few states that require the attorney to physically located in the state where the loan modification consumer is located. Other then that, at time this post is being written, there are no other regulations. I assume that will change in the next 12 months, so get in now and start making money.
Getting into loan modification you have two options. The first option is to bring on the attorneys to your staff and handle the negotiations in-house. When researching this you will find that some attorneys want to stay far away from loan modifications, because they no nothing about it. Others will be excited and ready to get working. The second option is to broker the deal. This is probably the easiest way to get involved with loan modifications. You simply take the applications and pass them off to a servicing company and receive a pay out.
I recommend taking a look at two companies. The first Get Green Credit which will train you on the process and assist you in getting up and running, ask for Bo Bryant. The second is Credit Advocate Alliance which will provide a complete branded portal for you as well as the servicing. They provide a branded website where the consumers can go to and pay for the service as well as a back end system that will allow you to track the process, ask for Greg Plummer. There is no doubt that loan modification software is going to help beat out your competitors.
If you have any further questions on leads sources or back end servicing companies, let me know.
.
.
Leadcritic…
Great post however I have a few comments…
Greencredit is a great company from what i hear but I just don’t see the long term business model…as I understand it…it is $3500 up front to the consumer…broker gets paid $1500 of it rain or shine and IF it does not go through consumer gets $1000 back. Broker does not have to give any of the $1500 back. Seems like a recipe for scammers…
We quickly learned to not just use one service provider…some are better with certain lenders than others…some are in compliance in certain states>>>some are in compliance for post NODs some are not…we have effectively become a conduit with a retail and wholesale channel. Combining the volume has allowed us to gain major market share. Last month we did 349 units and hope to help many more homeowners this month.
This is a great post. I’m finishing up a sales trip this week and this came up several times in my meetings. I don’t know the long term sustainability of these models, but right now it makes for a great way to diversify in a tough market.
A number of our long-time and new clients are taking one of these three approaches. These companies, either as a small division of their mortgage model or as a totally new entity, have asked us to help figure out and develop a workflow within our lead management platform for them. We’ve somewhat had to go through a crash course on this stuff, at least in terms of sales process. Fortunately we were able to quickly develop a template and process for these new business models. If you are interested in giving Debt Settlement, Credit Repair or Loss Mitigation we can help you get rolling.
Sorry Mike for the Leads360 plug, but seeing as this post is encouraging the diversification into the business, and we’ve done a lot of the work, I thought i would share it. Our guy Matt Wolcott is the most versed on this as he helped a few of his clients get into each of these categories. If you want to brainstorm it, give him a call. (310) 256-2932 / mwolcott@leads360.com.
We’ve been generating these types of leads for almost two years, and over the last six months the product has really taken off – I think the brokers finally got tired of banging their heads against the wall trying to get refis done and realized that it’s time to move on!
That being said, there is a tremendous opportunity in this space for companies that do it the right way and offer the homeowner a consultative approach. Most brokers who jump to the loan modification side of things remark about how rewarding it is to talk to people that you can actually help.
To piggyback what the Critic had to say re: backend processing, I’ve heard good things about Green Credit.
(portion of the comments were deleted for breaking the rules of the blog.)
Best of Luck!
And who said only Hawaiians love Spam?
Ferreeeeeeeeee…
Call me
Join and discuss
I agree with Bill.. How can you afford to pay out the broker if the deal does not go through?
So many companies are charging even if they cannot provide results. If you don’t give the clients their money back you will get yourself in some trouble. The truth of the matter is that no one knows and everyone is winging it. A lot of people will make money and move on to the next thing. Just like all the lead providers trying to sale loan modification leads. How many people can really give real results on 400 deals that they submitted? Bill did almost 400 deals…. how many will close?