What's needed for a Loan Modification

Has anyone done a loan modification? If so, can you answer the following questions for me?

1.) General size in terms of pages
2.) Generally, how many notarizations are needed for them
3.) Average price range to include the high end and low end
4.) What is it that people don’t like about them, if anything
5.) Do they generally require scan backs

I’m asking because I constantly turn them away but given the slow down in my business due to the increase in my fees for closings; I thought I would look into diversifying the type of orders.

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Depends on company assignment. I could say average 15 to 24 pages printed a minimum of two times, possibly 3. 1 to 3 stamps, at
Low $30 (that is what people don’t like about them), to $60+. Kind of depends on your area. They are generally quick. I have found them easy to schedule. I do not accept the low end.

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Thank you. I will look into this.

1-about 20-40 pages
2-1-4
3-varies, from signing services it’s about $30-$50, can be more if it’s from direct or it’s far.
4-Don’t know, also not my opinion to judge. These normally mean that there will be a few months that they will not pay the mortgage and it’s going towards the back of the loan. (when you purchase a home with a loan in the package there is a page called the amortization schedule where it shows buyers how much they pay for the life of the lone. it also shows the date, so if that date changes to a later date that’s’ where the loan modification comes in)
5-in my case 98% of the time yes.

when I first started all I did was loan modifications. These were easy and quick. and it got me comfortable .

Ohh… so it’s like forbearance on a student loan? Thanks for the insight!

Um in a way. These are really popular right now for covid.

It could be - they could also be reducing the interest rate they’re paying or extending the term of the loan. It varies.

That’s interesting. This industry is so creative with the types of products and services it offers signers.

Do you have a favorite SS that offers them or is Snap Docs it?

I only got loan mods from SigningTrac. I did that for years. I work direct now and I know that some of their clients moved over to notary dash, so idk if they get alot of them. If I need to fill up my schedule I only work with Snapdocs.

Just finished a signing where the signers were telling me about a loan modification they did last year because of Covid. They told me it was a nightmare for them because they thought it was only for two months payments but found out later that the bank asked HUD for a loan against the amount. In doing so the bank got $7K and HUD put that $7K as an additional lien on the property. The bad thing for the signers was that the amount of their payments was only $2400 (2x $1200 per month). So they had to pay $7K for $2k.

Is this a common thing for loan mods?

Not all loan modifications are set up like this. Some simply reduce the interest rate in a mod without having to refinance and pay high fees. Some will negotiate a modification with the lender to chance terms on their existing loan. I’m honestly surprised to see such high fees or any fees at all for a modification.

Thank you Irina. They were asking me if that was normal and I honestly couldn’t tell them because I’ve never done a loan mod yet. Plus it’s not my place to talk about the product anyway, but internally, I too thought that the amount seemed very high.

I’ve had closing cost that seemed ridiculously high but it looked like the borrowers were buying down the interest rate.

True that can’t advise on the fees.

If the signer is worried on the high fees you can make a phone call at the table to go over the fees.

Deferral is the correct term. A forbearance allows the borrower to put off paying on a loan for a set number of months - and then they need to come current on their debt obligation.

Thank you. You are correct.

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Thank you for answering so concisely. Your answers were “to the point”, this is exactly what notaries with no experience with these signings need to know. (specifically me! :grinning_face_with_smiling_eyes: )

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Also, a single tray laser printer works because 100% of the ones I have had were all letter size.