Hello my fellow Nesters –

I just wanted to give a quick note on this topic which seems to be racing through our industry like an epidemic.

Seems there are more and more Real Estate coaches reeling-in hungry Realtors with yet another promise of building new streams of business. This one comes in the form of ”Loan Modification Specialist" and promises the credential to add to your esteem Realtor pin.

But beware, these scams are plenty and although they deliver on the certificate, it is NOT a recognized credential by NAR, CAR or any Realtor Association. In fact, many Realtors who practice in this murky business could risk losing their license. So be CAREFUL!

It's best to educate yourself on the Loan Modification Process so that you, inturn; may educate your clients on the options and determine if the process is a right fit for them. But never attempt to act as the conduit with their lender. Instead, point them to the resources – there are plenty of free (as in NO $$ REQUIRED) DIY websites (Google DIY Loan Modification) where your clients can obtain the forms such as templates for hardship letters, financial statement forms and TONS of ready-to-use content to educate and arm them with the right set of tools to negotiate with their lender directly.  

Chances are, if the homeowner is not successful with negotiating a loan modification directly with their lender; then paying for a so called "service company" won't make a bit of difference. Steer away from these companies trying to scam our industry by charging up-front fees and guarantees to get  "approved modifications" – its a scam!

Another option for your clients might be a Short Refinance, offered through FHA.

Consult your clients – help them navigate these tough choices. And in the end you may end up with a listing for a short-sale or one happy client who will most certainly call on you when they are ready to sell.

Good Selling!