Because we do a lot of media (websites, videos), we see a lot of loan modification startups come through our office, and since we do, we have a unique insight into who lasts and makes a profit, and a few months later who is still in the “two guys in their basement” startup stage.

Getting a loan modification net branch is a fabulous idea from a cash flow perspective if you are already in the debt space or real estate space. First off, unlike debt settlement in which you typically are paid as a cash stream for many months (e.g. 18 months, typically) with a loan modification net branch you’re paid all at once, usually several thousand dollars.

So, in a perfect world, you’d triple-pop a client: offer then a loan mod, debt settlement, and credit repair – so in a typical transaction, you might make $2,000 up front, then another $3500 over 18 months, then another $1800 at the end for a husband-wife credit repair file.

A great loan modification net branch will include:

  • Training, on how to sell the files, some role playing so you know the common objections, training on managing expectations, how to originate the files, etc.
  • A website, of course
  • Marketing materials
  • Upsell / Downsell movement i.e. you’ll have some control over your price, but also over your product. Some loan modification net branch backend providers can legally pay you for bankruptcy referrals or short sale referrals in the event the loan mod is declined.
  • Usually, you’ll be working for a law firm. One arrangement we’ve seen work that appears to be FTC compliant is where you’ll work as a legal intake service, helping to structure the file and set it up, gather information including payment information, but not charge the card or ACH – the law firm will do this – then pay you. It is extremely important that you don’t represent that you’re the attorney in this equation, as the FTC is really on the warpath lately seeking to shut down shady operators. In truth, they really should just tax the service and provide some oversight, instead of trying to point-blank shut everyone down, but working with a solid law firm backend generally means they’ll ensure you stay compliant and in good graces of the ever-changing FTC regulation.

Back in 2009, we would get sometimes 2-3 calls a day for loan modification, then overnight it shut off due to legal changes. Now loan modification is coming back, in a more legally-compliant manner that truly delivers a great service to the end client at a good price. A good loan mod backend will help get principal reductions, which is a much-needed change to avoid mass strategic defaults.

To learn more about whether a loan modification net branch is right for you, drop a comment or give us a call. Setup is easy, and you can be earning commissions within a matter of days.

For those in real estate, loan mods are a perfect lead-in to handling short sales. You can easily outsource negotiation of the short sale, and still earn your full commission, and a significant percentage of people will in the end, get declined – leaving you in the driver’s seat to handle the listing, while the law firm will negotiate the short sale with the bank.