Loan Mod Course Training Inaccuracy – Oregon Loan Mod Regulations

Nicky:

Yes, the regulators are overdoing it.  Mods should be part of the services a real estate agent provides.  I invested a huge amount of effort and money in the biz.  Just as it was taking off I had to stop.  I am very bummed out.  There are other things to do, but specially in this economy, we can’t reduce ability to provide services.  If you have mods, I can connect you with my attorney.  You will earn OK, and not be at risk. 

Sincerely,

Oscar

Kathie:

Thanks for considering me for your R.E. training needs.  Julie and Tim Harris are not up to date with Oregon and Washington.  I don’t know about other states.

In Washington you can only charge $1500 max. That is the hard cost of doing the service if you consider what it takes to put it together. 

In Oregon we have HB 3630.  I had my service based on this rule.  It has a lot of inaccuracies, but I could work with that as you saw in the documents you got from me.  The last week of June, Oregon house bill 2191 passed.  It treats the mods as debt settlement.  You need to be a mortgage broker also.  Not only that, it mixes the activities of debt settlement together with mods in a very inprecise way.  It is all up to the interpretation of the enforcers.  I like doing business and have several mods in process.  Since I found about that regulation, I have not take a new client for mods.  That was July 7th.  A pity.  Now, to nail the coffin, they just passed HB 628.  Like all the rules, it starts the 1st of the year and has emergency provisions that makes it basically applicable as of the signing date.  That was less than 2 weeks ago.  To make it short, the new rule requires arbitration by attorney or HUD approved counseling 180 days prior to foreclosure date.  The homeowner is encouraged to show up with an attorney.  So now, just by gravity, all the mods in this area will be done by attorney.  Now I am referring all my mods to the two attorney I know, and get a referral fee.  Below are the links to the regulations.  This regulations are coming so fast and un-announced that most people, even most attorneys, are not yet aware.  Hopefully this helps.

I will be giving a debt settlement webinar and a last minute foreclosure stop webinar next week.  Maybe that is of your interest.  Keep checking your email.  Stay in touch.

Oscar

http://www.leg.state.or.us/09reg/measpdf/sb0600.dir/sb0628.intro.pdf

Kathy:

I lost the links to the specific rules.  Above is the latest, and the one that makes non-attorney mods in Oregon basically obsolete.  Basically because of the arbitration, where do you think clients will naturally go to.  You will have to That is another problem everybody is having.  I am running out of time.  Below is my attorney’s opinion.  He is one of the few lawyers totally up to date with mods in Oregon.  His firm does mods, foreclosures, short sales, etc. 

Chris:

I looked again at 2191 and also at your review.  Basically settlements are not possible in Portland.  With those caps the transactions would for sure be at a loss.  I confirmed with two settlement processors.  So that is over in Portland. 

–Agreed � consumer debt management / settlement service can no longer be done profitably in Oregon.

With respect to mods, the bill is very imprecise.  I mostly assumes the debt settlement procedures and puts limits on them.

–The bill is very broad in scope and does cover loan modification as such.  It assumed debt management services and procedures, and then clumsily applies them over any kind of debt related negotiation or workout activity.  Stupid and poor drafting, but that is what it does from a strict reading of its language.

Questions:

• Section 3: ORS 697.632
• Requires Registration With Dept Of Consumer Affairs – Do they already have that setup at this agency?

–I doubt they have this set up already.  They are probably working on it.

• Requires Bond  – Does this bond already exist?  It can take a while until a template bond is created.  Maybe an existing one can be adapted.

–Same answer as above, though this bonding will be via private companies, so who knows when or at what cost such a bond may become available.

• Who knows and has the authority to implement this?.  Should I call the dept of consumer affairs?

–This is stated at the beginning of the statutes � the director has authority to enforce, and the agency carries out the implementation.  I would consider strategically when to approach or call them and what questions you would ask and how you word them.  This bill may put us in a vulnerable position, so caution is advisable.

Chris, lets see how to deal with this new regulation.  To me, other than the definition, it looks like all else is not practicable or congruent with the mods.�Being practical or congruent is essentially irrelevant.  They wrote it to cover loan mods, and so it does.  The fact it is not practical to adhere to may be irrelevant.  It only shows that they rushed this piece of shit legislation through to address the �emergency� which is total BS, but that is our tax dollars at work�

  I think I can still take mod clients.  However, I may start shifting my efforts to eventually not be in this.  �I think it is dangerous to proceed as you may have been, especially in the way the marketing is done and the language of the contracts, etc.  There may be some workarounds, but all of it will be untested � there is no �safe harbor� for any of us.  It forces you into a very grey area where you are subject to enforcement, which is beyond your control and puts a lot of leverage in the hands of your paying clients if things don�t go just how they want.  More updates/discussion via phone when I have time.

Oscar

At 09:39 AM 8/22/2009, you wrote:

Oscar
I need your help…I noticed you were selling your website for loan modifications because of the restrictions in Oregon…I need a contact, copy of regulation or something that states a Broker alone can NOT offer/charge for loan mod services in Oregon.
Because before I met you, I paid $247 for the Harris University loan mod program. Julie doesn’t believe me that it is near to impossible to do them in Oregon, when I requested my money back. She needs proof…so could you DIRECT me to this PROOF?
Ever so grateful.
Nicky

Kathie Stoddard, Principle, 541-620-1257
Nicky Blackwell, Broker
Excellence
"Excellence is the result of caring more than others think is wise, risking more than others think is safe.
Dreaming more than others think is practical and expecting more than others think is possible."
Kathie Stoddard Realty
245 S Canyon Blvd, John Day, OR 97845
541-575-5948 F541-575-5949
 
www.kathiestoddardrealty.com
 
The information at this site is provided solely for informational purposes and does not constitute an offer to sell, rent, or advertise real estate outside the state in which the owner of the site is licensed.

— On Mon, 8/17/09, Oscar Morante <oscar@bestshortsales.com> wrote:

From: Oscar Morante <oscar@bestshortsales.com>

Subject: Last Minute Foreclosure Stop Webinar 08-18-09 4:00pm PST

To: "Nicolette Blackwell" <info@kathiestoddardrealty.com>

Date: Monday, August 17, 2009, 11:53 AM

 A lot of your clients need this service

Help them!

 

Dear Nicolette,

 

What can be more urgent for a homeowner than needing to stop a foreclosure that is just about to happen?

When someone is about to be foreclosed the next morning, nothing is more urgent!

In this webinar you will learn how to solve this problem.

 

Webinar Objective:

�         Learn how to postpone foreclosures for as long as possible

 

Webinar Content:

�         Understanding all options                                             

�         How to execute each

�         Properly timing actions

�         The needed paper work

�         Exact logistics

�         Avoiding pitfalls

�         Q & A

 

Real Life Applications:

�         Provide an additional service

�         Have more time to close short sales

�         Increase short sale negotiation leverage

�         Create more time for your clients to find a new home

 

Webinar Date:              

�         Tuesday August 18th 4:00pm PST   to    5:30pm PST

 

Materials Provided:                 

�         Full presentation PDF

 

Webinar Investment:

�         $30

Learn More

Sign Up Now

Presenters:

Oscar Morante                                                                                                             

BestShortSales.com / Century 21                                                                               

Real Estate Agent                                                                                                         

Licenced Oregon & Washington                                                                                    

Christopher Schwindt

Schwindt Richardson LLC

Real Estate Attorney

Licensed Oregon & Washington

Bestshortsales.com

9220 SW Barbur Blvd

Suite 119 – Box 159

Portland, OR

97219

US

If you no longer wish to receive communication from us:

Cancel

To update your contact information:

Update