Mortgage Assistance Relief Services - Proposed Rulemaking, Rule #546727-00014

Submission Number:
546727-00014
Commenter:
Rob Peters
Organization:
ARS Financial Group
State:
CA
Initiative Name:
Mortgage Assistance Relief Services - Proposed Rulemaking, Rule

For those of us doing the RIGHT thing in CA, this law is already in effect (SB-94) and it has already become too much of a burden. I hope for the rest of the country it doesn't end up nationwide. The number one single greatest issue with this law is in trying to collect the funds AFTER A SUCCESSFUL MODIFICATION. I am having to spend hours chasing down payments from clients and getting the run around BIG TIME. I have some that say they can only afford $100/month! My latest client we saved OVER $2000/month. YES, OVER $2000/MONTH. You know what she told me when I told her the good news and tried to set up payment of the $3000 fee??? Call me in two weeks and I will "try" to pay you $500. After long debate, there was no changing her mind. It has been well over the two weeks and now client is ducking my calls and won't return messages. How is this fair? I did my part and kept a client in her home that she would have otherwise lost. Saving her over $2000/mo after not paying her mortgage payment for 5 months should have been a snap to pay me the $3000 owed. Heck, I asked for 3 payments of $1000 each so she STILL would save $1000/month for the next three months and was turned down. Not to mention payroll of staff to work the mod through the last three months and sales people who are expecting a commission. That's not to mention that most mods take 6 months on average with some over 1 year! How can you ask any company to do business like this with ZERO guarantee of collecting the fee at the end of the road? To say this is unfair is an understatement. Something has to be done so that attorneys can at least collect and hold the funds in an attorney/client trust account. Short of that, good luck getting paid even AFTER successful negotiation of a loan mod. It's a joke to ask a homeowner who knows nothing of finance or lending to work their own loan modification. It just is too much for the average consumer to take on. Lenders are outright negligent when it comes to receiving documents sent and interpreting the information on them. Nothing is standardized and it becomes a hodge podge of documents. The solution of going to a free HUD agency for help is also a joke. I have a large number of clients who have tried this route and even hired employees who worked for these type of agencies and their customer service and turn around times are pathetic. p.s. And you had BETTER qualify WHEN the said fees can be specifically collected. At time of trial mod approval? At time of final loan mod signing? If at final loan mod signing you are asking for all private assistance on loan mods to be eliminated across the board. Most lenders are EXTREMELY slow to provide FINAL loan mod docs and never do so without a minimum of 3 months of payments (some take 4-6 months before sending out). Asking a loan mod company or law firm to wait this extended period of time for collection of fees is criminal and you will find that only the firms willing to take extreme risk or those collecting advance fees in spite of the law will be the only ones "assisting" customer/clients save their home.