Interesting article. Always important to read these bills all the way through. I have read most of the bill and I do think this bill has many merits. The first being it prevents all of those “loan modification sharks” from preying on homeowners. Secondly, if you read all the way down past the 1st paragraph of the bill, it exempts attorneys and other related practitioners from this “Consultant Bill”.
In today’s market there are way too many people taking advantage of others in desperate situations. The key word here is “solicit”. Lawyers and others soliciting families & making promises to help homeowners thru a loan restructuring, loan mod or even principle reduction programs all at a cost. Many times these fees can go as high as $3000! Ludicrous! What happens at the end….the loan does not get modified, whether it be because of the type of loan or the incompetance of the specialist handling this process. Could that be why over 85% of all loan modifications do not get done and of those loans that do get modified, about 90% of those end up in foreclosure 1 year later.
Just like Realtors, we work with our buyers/sellers to either sell them a home or in most cases in Arizona, short sale their home. I may spend weeks and even months getting the transaction closed but do I get paid ahead of time for work that I promise to get done? NO. I get paid when the transaction has closed. That is when Loan Mod Consultants should also get paid. Why milk these poor families for even more money that they don’t have because they are hanging their last bit of hope on a promise and a prayer.
I think the bill is great. Anything that will stop the predators from preying on homeowners. Short Sale Realtors may still be the last decent vestige in these difficult times. It takes a love of the business and the real desire to help people to be a successful short sale agent. I am proud to be one.
Elise Fay
Glendale AZ Short Sales
