LawsonGroupMediation

In the news is the following excerpt about Countrywide Home Loans NKA Bank of America:

Bank of America says it modified more than 64,000 Countrywide mortgages between December and March. The workouts are part of the bank’s agreement with 42 state attorneys general to settle predatory lending charges against its Countrywide subsidiary.

A bank spokesperson told Bloomberg News that the modifications made so far have reduced borrowers’ principal and interest by $823.5 million. Under the settlement reached last October, Bank of America agreed to make modifications on 390,000 subprime and adjustable-rate mortgages originated by Countrywide – a move that is expected to save borrowers as much as $8.4 billion.

Bank of America has faced an onslaught of lawsuits since acquiring subprime lending giant Countrywide last July for $2.5 billion. BofA is being sued by Countrywide’s mortgage investors in the U.S. District Court of New York, over who should pay for the modifications the bank is making as part of the anti-predatory lending settlement. The investors hold an 88 percent ownership in the home loans up for re-working.

This also means that not only Countrywide, but almost all lenders are increasing the numbers of loan modifications they are approving.

Why should a Realtor handle Loan Modifications? Because a Realtor is needed to value the property and Loan Mods provide a source of income to the Realtor, about the same as some commissions. Then, if it is not approved, you can then process the same property as a short sale.

Some states are regulating who can process loan modifications, so be certain you check to be sure that you do not need certification.

We published 2 books to help you with both short sales and loan modifications. They are designed as step by step guides to both processes and also to running a short sale and/or loan modification business.