Is This Legal?
I work for a mortgage company. I get a lot of people that are 3-4 months late on there mortgage and are about to be foreclosed on but it is not yet NODed. I have this guy who keeps calling me and he would like me to sell him the name and phone # of my customers. Some of my customers ask me if i would like to buy it being that I am in the biz. now I dont know much about the laws of real estate and i dont kow if this is legal. Is it legal for me to do that? [ Edited by jmccurley on Date 07/26/2004 ]
I think we need a little more. If someone wants to sell you their house and calls you, I don't see any problem. He could certainly solicit potential buyers by running an ad in the paper.
It was not clear what information the second guy was looking to buy from you. Perhaps you can clarify.
I'm not sure I understand what you are asking. What specifically are you asking?
Thanks
The people I deal with are about to be foreclosed on but it it is not yet public record. He wants to buy there name and phone #'s.
He has investors that want the names of people who are about to be turned over to the legal department.
I work for a bank. If your employer finds out you will be fired for disclosing private customer information. And your employer could be audited and fined by the auditors and your employer could be used by the customer.
Even though I'm a newbie, I know that the 3-4 months late folks are prime prospects. I will be placing an ad in the local newspaper advertising for 3-4 months late owners to call me about possible solutions.
Q: How many people do you see that are at least 3 months late and pre-NOD in a given month? Just curious.
4-5
obviously you know that directly selling the leads is something that you shouldn't be doing or you wouldn;t ask, right? Don;t worry about legal, worry about ethical.
Now, is there a way that you can benefit for helping the people calling you, the 'guy' and yourself? Absolutely. If he is offering you $500 or so per name, that is 1 thing, but my guess is he is offering you a much smaller amount./
I'd try to work out a barter type arrangement with him - he solicits work for you (ie refers easy to do mortgages) and you (with the prior approval of the homeowner) matchmake between the homeowner and the 'guy'. Now if your 'guy' doesn't come through with the referrals - find someone else who will.
THis way, you, the 'guy' the homeowner, and your company will all benefit. If you can do this ethically, you can sleep at night AND make more money
jmccurley --
Question:
1) Do you have a real estate license working with the mortgage company?
If so ... this will greatly determine how, what, when, where you should handle this ethical ... but also legal regarding your license.
The summer 2004 California Department of Real Estate "Real Estate Bulletin" newsletter has a 2 pages article entitled "Referral Fees Both State and Federal Rules Apply." With many citations of the do's and don'ts.
Try to obtain a copy in your office. You can email me and let me know your fax number and I will be happy to fax it to you.
Cheryl Lopez
Quote:
On 2004-07-26 16:46, jmccurley wrote:
I work for a mortgage company. I get a lot of people that are 3-4 months late on there mortgage and are about to be foreclosed on but it is not yet NODed. I have this guy who keeps calling me and he would like me to sell him the name and phone # of my customers. Some of my customers ask me if i would like to buy it being that I am in the biz. now I dont know much about the laws of real estate and i dont kow if this is legal. Is it legal for me to do that?
<font size=-1>[ Edited by jmccurley on Date 07/26/2004 ]</font>
This kinda doesnt make any sense, since it enters NOD at 90 day stage which is 3 months. So once its in 90 day stage it comes out on all the services that provide you the info.
How can you get this stuff before i dont get it.
Quote:
On 2004-07-26 16:46, jmccurley wrote:
I work for a mortgage company. I get a lot of people that are 3-4 months late on there mortgage and are about to be foreclosed on but it is not yet NODed. I have this guy who keeps calling me and he would like me to sell him the name and phone # of my customers. Some of my customers ask me if i would like to buy it being that I am in the biz. now I dont know much about the laws of real estate and i dont kow if this is legal. Is it legal for me to do that?
<font size=-1>[ Edited by jmccurley on Date 07/26/2004 ]</font>
This kinda doesnt make any sense, since it enters NOD at 90 day stage which is 3 months. So once its in 90 day stage it comes out on all the services that provide you the info.
How can you get this stuff before i dont get it.
Quote:On 2004-08-13 00:48, knsv wrote:
How can you get this stuff before i dont get it.
Apparently you didn't read what you quoted before you asked the question. I snipped all but the most important part:
Quote:
On 2004-07-26 16:46, jmccurley wrote:
I work for a mortgage company.
HE WORKS FOR A MORTGAGE COMPANY!
I think Nickle is right on the mark here. The information regarding the financial status of your customers up until the NOD is filed is protected private information. Releasing it without written authorization of the borrower is a violation of several federal banking laws and probably a number of CA regulations as well. On top of which if the bosses find out the odds of your continuing to work for a mortgage company are pretty slim.
Not sure of your role @ the mtg co, but clearly the answer to selling the info is NO. If you've never done biz w/this "guy" let him wait until the NOD is filed and if he wants your "advice" on how best to approach homeowners (in general) he comes up w/from the NOD's, then that's a different story. You can consult with him to better his chances of getting in the door. Just be sure that your employer &/or industry does not require disclosure of outside activities such as consulting or owning a corporation. If there are no disclosure rules, then start your consulting biz. The same $ he was willing to give for the non-public info, should be the same fee he pays for your advice (give or take). This way you'll get a feel for how he does business.
Now, if your "customers" point blank ask you if you are interested in buying the props, do you have a trusted network hat you can refer them to (realtors, priv investors?). If not, now is the time to build that network. Again, be sure of the regulations in your industry.
I'd look at this as an opportunity....just go about it ethically.
1. Talk to your employer. Ask if you can personally contact individuals who are behind on their payments.
2. If he/she says yes, type up a letter that explains who you are, how you're aware of their situation (as it is not yet public information), and then offer your assistance.
3. From there you can short them, wholesale them, or birddog them.
If everything goes well, could be a nice little situation.
Anyone see any problems with this???