Loan Modification Net Branch Opportunity
Setting up a loan modification net branch is an obvious and profitable decision for anyone in the debt reduction or real estate industries.
First, simply having loan "mods" as a product offering will provide you another "fish hook" to go fishing for clients with.
For real estate agents, most short sales start with someone who wants to keep their house, regardless of whether or not they qualify, and for those offering debt settlement, this offering works hand in glove with your debt reduction services.
Currently, loan modification services are not licensed in most states, although there are extensive compliance regulations, so you most likely won't need a specific license as long as you have a law firm employer.
Furthermore, it's actually easier to get a loan modification if the bank knows your borrower is also getting their consumer debt reduced, and you may be able to settle consumer debt for less by showing the bank how a reduced mortgage payment will improve their ability to save and accrue funds for consumer debt settlement.
A good loan modification net branch opportunity will include the following components:
Furthermore, loan modifications are starting to boom again because the success rates are higher (the banks want to avoid a rush of strategic defaults, people who can afford to pay but don't want to), principal reductions are more likely, and homeowners need help.
In addition, some loan modification backend companies will negotiate short sales, or complete bankruptcies, potentially providing another revenue source while truly serving the client's best interests.
Ideally, one might combine a loan modification net branch with a debt settlement offering and credit restoration, and thus create an initial commission on the loan mod (typically ~ $2,000), combined with the on-going cash stream of debt reduction (for example, $3,000 spread over 24 months), with a final credit restoration project (often ~ $1,200).
This would leave the consumer with a much lower mortgage, free of consumer debt, and with the highest credit score their situation supports, while yielding $6,200 in total gross revenue to the provider.
First, simply having loan "mods" as a product offering will provide you another "fish hook" to go fishing for clients with.
For real estate agents, most short sales start with someone who wants to keep their house, regardless of whether or not they qualify, and for those offering debt settlement, this offering works hand in glove with your debt reduction services.
Currently, loan modification services are not licensed in most states, although there are extensive compliance regulations, so you most likely won't need a specific license as long as you have a law firm employer.
Furthermore, it's actually easier to get a loan modification if the bank knows your borrower is also getting their consumer debt reduced, and you may be able to settle consumer debt for less by showing the bank how a reduced mortgage payment will improve their ability to save and accrue funds for consumer debt settlement.
A good loan modification net branch opportunity will include the following components:
- Training, on how to originate the file, legal compliance and FTC guidelines, training how on how to sell the service - in short, training for everything you need to know, including some role-playing examples to hone your real world sales skills.
- Marketing materials, including direct mail, flyers, email copy, email autoresponders
- A website that puts you in business, looks good, and builds trust in your organization
- Contracts and forms to originate, deal with Home Affordable legislation, correctly structure a budget, etc.
- Price control, so you can upsell and downsell, truly working like a business owner, while having a financial incentive to create a higher perceived value and create greater profits.
- On-going compliance training
- A full law-firm backend, which means you'll technically be working for a law firm.
Furthermore, loan modifications are starting to boom again because the success rates are higher (the banks want to avoid a rush of strategic defaults, people who can afford to pay but don't want to), principal reductions are more likely, and homeowners need help.
In addition, some loan modification backend companies will negotiate short sales, or complete bankruptcies, potentially providing another revenue source while truly serving the client's best interests.
Ideally, one might combine a loan modification net branch with a debt settlement offering and credit restoration, and thus create an initial commission on the loan mod (typically ~ $2,000), combined with the on-going cash stream of debt reduction (for example, $3,000 spread over 24 months), with a final credit restoration project (often ~ $1,200).
This would leave the consumer with a much lower mortgage, free of consumer debt, and with the highest credit score their situation supports, while yielding $6,200 in total gross revenue to the provider.
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