Commercial Loan Modifications May be the Next Wave…….
by Rescind My Loan by Foreclosure Defense Attorney Steve Vondran on 13/02/10 at 6:41 am
COMMERCIAL LOAN MODIFICATION ADVANCE FEE AGREEMENT FOR SALE
Okay, so SB 94 was passed preventing California DRE brokers (and Attorneys and others) from taking advance fees for loan modification and mortgage forbearance work. This has literally run many loan modification companies (both the loan mod scammers and legitimate loan modification companies) right out of business. As loan modifications can take anywhere from 3-15 months to complete, most companies cannot afford to operate financially in this type of environment.
Keep in mind, SB94 only prohibits the collection of advance fees for residential loan modifications. California licensed DRE brokers may start, or continue serving commercial clients in the area of loan modification / loan workouts / loan restructuring. I recently contacted the California Department of Real Estate (DRE) and learned they are still approving commercial loan modification advance fee agreements.
During the early days of the residential loan modification business, I did have the privilege of helping roughly 50+ companies get approved with a DRE approved advanced fee agreement (“approved” really means the advance fee agreement had received a “letter of non-objection” from the department).
During this period, I was also able to get a COMMERCIAL ADVANCE FEE AGREEMENT APPROVED, WHICH AGREEMENT RECEIVED A LETTER OF NON-OBJECTION FROM THE CALIFORNIA DEPARTMENT OF REAL ESTATE.
It is fairly common knowledge that the commercial market lags behind the residential market and will be facing their own financial issues, including the need for loan modification, loan workout, loan restructuring, and short sale work. If you have commercial real estate and commercial loan experience, you may want to investigate the commercial loan modification arena.
If you feel you are a good fit, and want to serve this segment of commercial real estate clients in financial distress, contact us to discuss our previously approved commercial loan modification agreement.
For those of you who have previously tried to draft your own residential and commercial loan modification agreements, and present it to the department for approval, you probably realize what a difficult task it can often be to get your agreement approved. If you make one tiny mistake (and their are lots of potential grounds for denial of your commercial advance fee agreement) you are basically denied and must make the edits, and re-submit the advance fee agreement, costing you lost time, and potential lost sales.
IF YOU ARE LOOKING TO GET INTO THE COMMERCIAL LOAN MODIFICATION MARKET AND SERVED FINANCIALLY STRAPPED COMMERCIAL PROPERTY OWNERS AND INVESTORS, AND YOU INTEND ON COLLECTING ADVANCE FEES FOR YOUR SERVICES, YOU WILL NEED AN ADVANCE FEE AGREEMENT THAT HAS BEEN PREVIOUSLY APPROVED BY THE DEPARTMENT OF REAL ESTATE.
DISCLAIMER / CAVEAT: Please note that although our commercial advance fee agreement has been previously approved for usage in the State of California (it received a letter of non-objection) the DRE is always permitted to impose new requirements, and/or not comply with previous approved versions of the advance fee agreement. Therefore, although our commercial loan modification agreement has been previously approved, the DRE has the inherent power and authority to require new or updated criteria, and re-submission of our commercial advance fee agreement may be required. We have had this happen in the past.
The Law Offices of Steven C. Vondran, P.C. is licensed to practice law in the States of California and Arizona. Mr. Vondran is a licensed real estate broker in both states as well. Currently the firm handles Real Estate, Bankruptcy, and Foreclosure Defense work in addition to assisting real estate brokers in the area of Broker Law. He can be reached at steve@vondranlaw.com or by phone at (877) 276-5084. Emails are not confidential and create no attorney-client relationship. This is an advertisement and communication pursuant to state bar rules. We only seek to solicit and serve homeowners, real estate investors, and brokers in California and Arizona.
