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November 5, 2010

Loan Modifications – What You Need to Know!

Loan modifications are a relatively new type of loan product.
They can be a good source of income, but can also be a source of anxiety or TROUBLE. Laws differ from state to state. But, loan modifications are supposed to be sold by an attorney in many states. The sad fact is that desperate homeowners who were losing their homes fell prey to loan-mod scams, and lost their shirt. So, are loan-mods bad, or good?

The truth is that many companies offer loan mods, and the environment keeps changing as we speak. You can visit 123notary’s forum and find out who the disreputable players are in the market, so you can stay away from them. But, recently some good companies have entered the picture.

What do you have to look out for?
(1) If a company asks you to claim that you represent them — that’s bad. you are a notary, and represent your state only. Don’t lie and claim you represent someone that you don’t.
(2) If a company is collecting a huge check from the borrower to get them started, that’s a warning sign. Loan modifications are supposed to help borrowers stay afloat. If they are taking advantage of the borrowers, that’s bad.
(3) Check loan modification companies on the 123notary.com or notary rotary forums to see if they are reputable. Many loan modification companies don’t pay their notary public service providers!

Hope for the future.Recently, B of A and Wells Fargo have joined the loan modification arena. These are two highly reputable companies that many of us have been doing business with for years. Don’t judge a loan by the type of loan it is, but judge it by the individuals or company offering it.

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4 Comments »

  1. Good information, however, if we are being hired by a signing company often they do not even know who the lender is. So there is no way of checking ahead of time.
    The signing company wants to hire a notary as soon as possible and will probably not want to take the time to check for us.

    In instances such as this there is little protection for the notary unless I’ve missed a step somewhere.

    Comment by Margaret Paddock — August 21, 2011 @ 8:24 pm

  2. Nice. I don’t know much about loan mods so this helped a lot.

    Comment by Find a Notary — April 6, 2012 @ 10:40 pm

  3. Thank you for your information service to Notaries!! It is great that you are ahead of the scams!!

    Comment by Connie Kuest — June 14, 2012 @ 6:58 pm

  4. I check to determine who the lender is. If the lender is not a major player, I won’t accept the signing.

    Comment by fuzzy1955 — February 16, 2013 @ 1:16 pm

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