One question that keeps coming up has to do with the homeowner paying for the loan modificaiton. “How do I know if the homeowner will actually pay for it?” is a common question that we get in support.

Here’s the deal. There are no series of questions that you can ask the client to determine if they will actually pay for the mod. All you can do is address the issue of the cost of the loan modification, and do your best to “read” the homeowner. Of course there is a way to address the cost of the mod and there is a way to NOT address the cost of the mod. Let me give you an example or two.

1. The homeowner calls, you pick up the phone and you say, “Sure, we can help you get a loan modification done and it costs $2995 to do it.” What’s the homeowner going to say? Are they going to feel good about spending almost three grand on the loan mod? Probably not. Now try this approach.

2. The homeoowner calls, and you have a conversation with the homeowner about their situation, about what happened, about how they got behind (if they are behind), what they want (stay or sell), what they can afford… try to find some common ground with the homeowner, have some sympathy for them and yes, maybe even have a little fun! They’re just another human being, and they are in need of some assistance, that’s why they are calling. Ok, so after you have a very good feel for their situation, for what they need, for what has happened for them, then you can discuss that you have alligned yourself with an organization that helps homeowners keep their home. You can tell the homeowner that you have spent a lot of time and energy finding the best organization in the nation that helps homeowners just like the one you’re speaking with. You tell the homeowner that the organization you are alligned with does attorney backed loan modifications, and of course the attorneys are going to require a retainer fee. You tell the homeowner that they will NOT be paying you, that they pay the attorneys directly. Then walk the homeowner through the cost of NOT doing the loan modification. If they’re behind on their payments and it’s looking like they might end up in foreclosure, then walk them through the cost of a foreclosure… the cost of trashed credit for the next 10 years (tens of thousands of dollars), the cost of moving (a few grand), the cost of a moving truck and moving men (a few grand), the cost of a storage unit if they’re moving from a house to an appartment ($50-$100/month or more), the cost of 1, 2, or 3 months security deposit. All of this adds up to $10,000, $20,000, $30,000 or more! This doesn’t include the emotional cost of moving, of moving their kids to a new school, etc. If the homeowner wants to retain an attorney backed loan modification, if they really want to stay in their home, we can get their file reviewed for free, and after it is accepted, they can actually retain the organization for a mere $2995 and they can keep their home.

Do you see the difference? Which situation is the homeowner more likely to go through with the loan modification?

If you do something different that works for you, let me know by posting a comment.

To your success!!!

Marty Schulting
Accelerated Loan Mods