Just talked to a Loan Broker

I just talked to a loan broker, and WOW what a difference it makes to have some practical experience thrown in.

So here is the deal...

All the laws I have been reading are California State Laws, and they don't apply to federal loans.

The loan broker told me that at least 9 out of 10 loans these days will be Federally backed loans. So the state laws are mostly worthless.

Loan Brokers are limited as to how much they can charge, some loans they can only charge 1.5%

For practical purposes loan brokers don't ever write down that they have paid any one a finders fees, they are paid in cash.

I am really starting to see why Real Estate Agents for the most part don't like loans and just don't deal with them, because it's too much trouble and there are too many regulations that prevent RE Agents from being involved with loans.

It looks like an Agent could do a loan modification if they only charge the client after the deal is completed. But then you have a collections problem, and I really don't like that.

Besides then your spending your time and effort working on a deal that gives you the chance to try and collect maybe $1000 or $2000 from someone who has a history of not paying their debts.

I am really torn, on one hand, when you get a hold of someone who is wanting you to work with them, it is always nice to have multiple ways to get some money out of them. On the other hand, it's such a drag trying to collect some money from people who don't want to pay.

The loan broker made it really clear, that you never want to charge someone for a loan modification until it was completely finished. Because if anything goes wrong and they don't get their loan reduced, then you are responsible and liable for any and everything they can think of to sue you for.