Does anyone have any experience taking calls from homeowners that are trying to stop foreclosure?
Do you offer to help with a loan modification for free?
Do you offer to buy their property if they can not get a loan modification or if they default on it?
How has this strategy paid off or not?
Ethically there is a major conflict of interest. 'Helping' with foreclosure may be stepping into the realm of 'legal advice' which is for licensed attorneys only.
You might be better off just explaining you can make an offer to purchase the home and negotiate with their lender on a short sale.
Thanks for your reply on this thread. I thought maybe it fell on deaf ears.
If one is acting as a consultant and not charging a fee for service then do you think that would be considered acting as an attorney?
An ethical conflict would only arise if the consultant was a paid "fiduciary" as in the case of an attorney.
Most states have passed laws that preclude the general public from engaging in this activity.. I would bet CA is one of them I know for certain Oregon and Washington have those laws they were implemented back in 08. Now they are violated everyday especially when a Guru has just come through town and the bandit signs go up.
And the AG's in all states have been putting the ( we help you out of foreclosure crooks ) out of business.. Many were headquartered in Florida.
And they were out and out bad actors... They would charge 1k or more and promise to help and more people lost their homes because they were so naïve as to believe these people .. I had personal experiences with more than a handful that fell for these low lifes.. they make seminar gurus look like choir boys :)
In most states you need to be a licensed foreclosure agent.. In our state that means a RE broker, Mortgage broker or attorney.. As well as there are companies that represent the banks in the mandatory face to face meeting lenders are now required to have with borrowers who are in foreclosure. ( again this is the law in Oregon and Washington)
I just helped a buddy out of one of these he went to the meeting with the rep. they worked out a plan,, I provided the capital and we are good to go.
Its a double edge sword for sure... Many people could get a benefit from an investor stepping in instead of them losing it all. But so many have abused this scheme that as I stated the states really have come down hard on those that do this...
@Ted Schmidt what were you flying in ?
Originally posted by @Jay Hinrichs :
@Ted Schmidt what were you flying in ?
I don't remember which plane that was, but I do remember making an emergency landing in the desert near Prim Nevada and vowing not to charter private airplanes unless absolutely necessary. It was pure vanity.
With my feet firmly planted on the ground. ..If one is not acting in fee for service capacity, or an attorney, are there some restrictions on helping people get loan modifications or short sales?
Don't AG's go after scammers that take money from people in advance of any service being rendered?
Earlier this year i spent a ton of marketing dollars toward forclosure leads, and OMG ill tell you it was the best response rate ever. Probably about a 50% responce rate. But every single respose was a "IM WILL SUE YOU IF YOU EVER CONTACT ME AGAIN.." or "MY LAWYE WILL BE CONTACTING YOU SOON"....LOL
I talked to a lawyer because i was scared and i was informed its against the law to act as though you want to help them, if your going to really buy the property. Either you act as a consultant and thats its, or either you tell them you want to buy it and thats it or you act as if you can legal help them and thats its....Luckily no one actually took legal action towards me, the lawyer told me it would have been 100% lost for me...So i retired my intrest in forclosure leads, unless its already a short sale approved...
Every state may be different but here in CA its a slippery slope....But as @Phil Z. said that would be safest route to take...
I ment earlier last year....
AS Rueben just posted I suspect CA is just like Or and WA and many states one needs to be a licensed foreclosure specialist ( whatever that means in each state) in Oregon its RE broker, lawyer or NMLS lender. With the idea that your truly helping these people out, by protecting their equity ( not trying to buy it from them and take their equity) In Oregon if you buy a property that is in Foreclosure your only allowed a certain % gain if you resell within 2 years any gain over this amount is due the seller. Of course try to enforce that.. But like Rueben stated anyone takes this to an attorney and its slam dunk.
A RE broker has a fiduciary to his or her client to maximize their return and it would be self dealing to buy the home then flip it and profit from it.
Emergency landing? On a runway or actually in the Desert ? I have had a few of those moments piloting my plane... Like Oil gauge goes to zero whilst over the Mountains with no place to go but down. So made a few precautionary landings KNock on wood no Emergency landings.
Prior to these foreclosure laws coming into effect. I acquired the majority of my rentals in ORegon from pre foreclosure leads and then took them sub too once I cleared the arrearages. It was a made dash most people losing a home will wait until literally the day before the foreclosure sale before they call you.. So we would be couriering reinstatement funds to trustee's literally the day before or the morning of the sale. In CA I believe or at least it used to be the Bene did not have to accept reinstatement funds if you were within 5 days of the sale.. NOt sure if they followed that as a practical matter.
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