Loan modification companies are flooding my email these days attempting to sell me “loan mods” as easily and profitable as the old subrpime mortgage pitches. I can remember all those emails of all those subprime lenders pushing every loan officer and mortgage broker in the country to sell subprime loans to anyone who could fog up a mirror.

We said, “No thanks”.

Now those same loan officers who said, “Sure, I’ll sell loans to folks who can’t afford them as long as it’s easy and I can make a ton of money” are being marketed to again….this go-round it’s loan modification services.

These scam companies get loan officers email lists and spam out to 1,000′s of loan officers and mortgage brokers to sell foreclosure victims on the upfront fee model of loan negotiation and modification services….you know the things the borrower can better do himself!

Here’s and example of the email attempting to sell me on this slimy activity…

Sell Loan Modifications and Start Making Money Today

“We are a loss mitigation affiliate branching company 100% nationwide attorney backed. There are no sign up fees!

You work independently as a 1099 contractor under our company name. Work in most states.

You decide what you charge your clients. We charge a low flat fee for our modifications. Therefore you determine your commissions, not us. Have other mortgage brokers/loan officers working underneath you!

We perform a loan forensic audit analysis on our files. Our software allows us to evaluate your borrower’s current loan documents for any Federal, State, or Local violations of the law, including fraud.

You are paid weekly via direct deposit. Tons of branch references available

Furthermore we offer our clients a 100% money back guarantee. If we don’t succeed in your borrowers’ modification, we refund their money. We have a very high success rate!

Our mitigators have 15+ years in individual experience in quality and fraud control, loss mitigation, underwriting, etc. We don’t have $25,000/year junior processors working at our company!

Our website and all of our marketing materials are all in Spanish as well as English!

Forbearance agreements, short sales, and deed in lieu of foreclosures are our other specialties.

We have a very high success rate on all of our mitigation cases! We can modify anyone in an ARM, anyone in a fixed rate mortgage 2% or greater above where current market rates are for 30 year fixed mortgages, and/or anyone who is or has been late.

All marketing materials and leads are provided for you as well as a complete support staff 24/7. Our office is open from 6AM PST to 6PM PST!”

I wrote a post about HUD warning consumers against using “upfront” fee based mortgage negotiators.

If you are a loan officer tempted to sell this, don’t. You are not a lawyer. Nor are you trained in the legalese and the paperwork necessary to insure a workable loan modification.

Good Luck!

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