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Have you noticed the number of ex-loan officers that are now loan modification specialists? It is just ridiculous!

Maybe I am being too harsh... but how come an ex-loan officer who could not make it in the mortgage biz (that might be a little too mean)... all of a sudden has the legal and tax background to help distressed homeowners make a good decision about doing a loan modification.

Maybe the sticking point is... "a good decision". 

Now I have to put a disclaimer here ... not all ex-loan officers are the bad seeds...

Here is my 2 cents:

Why would I want to make a decision that could ultimately create a tax or legal consquence for my family and base my decision on advice from an ex-loan officer?

My answer... I wouldn't!

I recently ran into a ex-loan officer from our area.  Based on conversations with him in the past, I would put him in the shady loan officer category.  He started off in the loan business in 2004-05 time frame with 0 experience in the field.  He was pulling in 50k a month easy mostly doing refinances for people. I won't go into the details ... just know he was a real winner!

We ran into this guy recently after hearing through the grapevine he was back to "flipping burgers".  Well turns out the the McDonald's gig (I am embellishing here)  did not work out for him and he is now a Loan Modification Specialist. That is what inspired this blog post!

So let me get to my point....

Most people looking for a loan modification are in that situation because the terms of their loan adjusted, they have lost income, or some other major event has occurred where they are financially strapped.

A loan modification is not the cure-all-end-all for folks... so don't believe all of the advertising!

Many of these ex-shady loan officers are out promoting themselves as if they are the savior from heaven and will fix all of the homeowners problems. It just makes me sick!

We received a call this week from a gal who just handed over $2,000 to one of these companies so they would modify her loan.  Thank goodness she called us the next day to ask us if she had done the right thing. Within 15 minutes on the phone, we determined that she would default on her new loan modification within months because she just did not have the income she needed to survive. 

This company who "helped her", after some research, where a group of ex-loan officers. 

Thank goodness she was able to quickly call them back and get her money back because she was within the 3 day grace period. I felt bad for her because they played on her emotion of wanting to keep the house and all logic went out the window on her part frankly!

The bottom line???

If you are in a situation where you think you might need a short sale, loan modification, or might be forced to give a home back to the bank.. get some advice... REAL ADVICE.

Anyone who calls into our office in this situation, after an initial consultation with us (so we can see if we can assist by restructuring their mortgage debt), gets referred to a local attorney. 

This attorney is able to give them big picture tax and legal advice so the client can make an informed decison so they know what their next step should be.  If a loan modification is needed Jeb's team can assist them.  If it will not solve the problem... his team will be upfront and let the client know how they should proceed!

I would much rather have an attorney on my side going up against a big bank! Think about it... How is an ex-loan officer going to explain the legal and tax ramifications for the documents that need to be signed when doing a loan modification (or short sale for that matter).  

If you are in the Sacramento area and need to talk to someone you can TRUST who knows what they are talking about call Jeb at the Burton Law Group!

Jeb Burton
Burton Law Group
www.lawburton.com
916-570-2740

There are good companies out there so I don't want you to think I am painting a picture that all loan modification companies are crooks.  BUT get some legal advice first to make sure you understand what you are getting into at the very least!

Thanks for reading my little rant!  Have  a comment? I would love to read it!

7/17/09 UPDATE!: Watch this VIDEO>>
Several mortgage modification companies just got served with lawsuits from the California Attorney General...Justice!

This blog by:

Team Newington
Sacramento Mortgage Planners
(916) 687-6868
www.SuperiorLoanTeam.com

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