Didn’t get to call the Discount Mortgage Relief.com folks today as promised. Could have had something to do with the fact that Chris and I spent today showing 3 homes located 1 hour from our office, pulling comps on 2 of them, talking to 2 lenders and a 1/2 dozen Realtors, nabbing one deal and writing 3 other offers, and having a heart to heart with buyer clients worried over the potential future value of a bank owned home currently for sale.
Instead, here’s a short snippet cribbed from an email I sent to another buyer client – a nervous first time buyer at that – who’s signing her life away, with the intent of purchasing an REO bargain.
If you handed the bank’s “As Is” addendum to an attorney & paid him to look it over, he’d have a heart attack. He’d charge you thousands to re-write it to favor you or at least not to bend you over at every turn.
Mind you, the bank won’t stand for re-writes. They’ll just sell it to the eager buyer behind you in line.
Above all, keep in mind you’re playing ball by the bank’s rules on their field. But we’re in your dugout and we’ll help you learn the rules of their silly game and apply them to your advantage whenever possible.
Heather Barr is a Realtor. She's a chow hound, a gym rat, and the only political junkie in the USA who can actually keep her political views to herself. Instead, she focuses on educating her clients about the often-confusing world of residential real estate.
Tagged as:
REO/Bank Owned
“You have reached The Mortgage Relief Hotline.”
You’ve probably seen the commercials on your TV lately too. “STOP FORECLOSURE” they scream at you. “GOVERNMENT PROGRAMS HELP YOU!”
One of these caught my eye tonight because it never mentioned the name of the company that was offering the help. I thought that was scary so I called to find out what it’s all about.
These are the notes from my brief conversation this evening with the clerk who answered the phone.
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They’re doing loan modifications based on “the federal bailout program”
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They work with the client’s existing mortgage lender, try to get them brought current, trying to get the client lower interest rates
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They’re also working with “the Obama plan doing balance reductions”
Where located? Scottsdale
What information needed from homeowners? “We run them thru a prequalification process before talking with their lenders.” That includes the homeowner’s ”monthly budget, taxes & insurance, income, etc.” Once the homeowner is prequalified with Discount Mortgage Relief.com, the company starts talking with the homeowner’s lender(s).
What happens after the homeowner gets prequalified by DMR.com? The homeowner must send DMR.com the following
What fees? It varies, starting at $995 to cover the processors and negotiators, and for multiple loans or high balance loans, fees can go up to $3,000
What if Lender Doesn’t Modify the Loan?
The clerk I spoke with said “There’s a part in our contract called ‘nonperformance’ which is a 100% refund if savings isn’t at least 15 times the loan modification fee [charged by DMR.com].
More Information to Follow Tomorrow
I’ll call DMR.com again tomorrow morning, during business hours, to find out a bit more, including:
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how long in business?
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local, regional, national?
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success rates?
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number of employees?
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when exactly is the fee due? before the prequal process or after?
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what are the qualifications of the people who handle these modifications? are they lawyers? paralegals? trained or certified?
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how is that 15% savings rate calculated?
Check back tomorrow for more! Please comment if you have questions you’d like me to ask DMR.com, or if you’ve used a loan modification company yourself.
Disclaimer
The call center clerk I spoke with tonight was was pleasant and helpful, and very mindful of the fact that I was taking notes. I didn’t hide who I was, and told him upfront that I’d be writing about DMR.com on this blog.
I’m not endorsing Discount Mortgage Relief.com (DMR.com) in any way. They didn’t ask me to write this story and I’m not getting anything for writing it. OTOH, I’m not here to bash them either. I just thought it would be helpful for The Phoenix Agents readers to see behind the curtain on one loan modification organization.
Heather Barr is a Realtor. She's a chow hound, a gym rat, and the only political junkie in the USA who can actually keep her political views to herself. Instead, she focuses on educating her clients about the often-confusing world of residential real estate.
Tagged as:
Short Sales
