Interview with ModifyUtah VP of Finance; Randy Chipman

4 November, 2009

Randy Chipman is the Vice President of Finance for ModifyUtah, a new company that specializes in Utah home loan modification. Based in American Fork and licensed with the Utah Department of Real Estate, the company provides a professional team of lawyers, negotiators, processors and brokers who perform mortgage loan modification for homeowners, with a money-back guarantee.

Randy sat down with us to answer a few questions about ModifyUtah and starting a business in a down economy.

What prompted the launch of ModifyUtah?

Obviously we have been in a housing crisis for the past few years. Fortunately, Utah was behind the curve compared to the rest of the country. Many of the adjustable rate and subprime loans in Utah are just now resetting, leaving homeowners with skyrocketing interest rates and payments they can’t afford. Coupled with the decline in housing prices, we realized homeowners needed help.

We recognized the need for a local company to help local homeowners – rather than using an out of state company that is not aware of Utah laws of regulations, and Utah’s specific housing needs.

What challenges did you face as you started a new company in a down economy?

I believe that as long as you provide a service that people need – and not just want – you can find success in a down economy. A home you can afford is a necessity. We all need shelter, and people don’t want to foreclose or lose their home in bankruptcy. We are providing a service people need, and that automatically helped us launch a successful business.

There were still challenges. Capital is harder to come by, homeowners don’t have any extra money to spend, and many people are tired of talking about the failing real estate industry. But when we opened our doors earlier this year, we immediately found homeowners who needed help and were anxious to use our services.

Can homeowners get loan modifications themselves?

Absolutely, homeowners can get a loan modification themselves if they are willing to put in the time. It is like doing your own taxes. Anyone can do their own taxes, but many I, like many others, pay a professional tax preparer to get it done right so I don’t have to spend the time.

The fact is, banks are not interested in working with homeowners. Their processes are not conducive to this kind of personal interaction. Homeowners end up spending hours upon hours on the phone with the bank, and then go back and forth about paperwork for months before achieving any results. In fact, many of our clients have spent the last three to six months trying to get their own loan modification.

So how does ModifyUtah bridge the gap?

Experience – we’ve done hundreds of successful loan modifications. We provide a professional team of lawyers, negotiators, and brokers who negotiate mortgage loan modification in a quick, timely manner. We also evaluate the loan for free from the start, so we know if the homeowner is a good candidate for a loan modification. We have established relationships with most of the major banks and mortgage servicers in the United States, so we have the tools to get the loan modification quickly and easily.

We’ve heard about individuals who claim to do loan mods but simply take payment and never do the work – how does that affect your business?

It is unfortunate. We opened our doors here locally so people could come in, sit down with us, and understand we are a brick and mortar company helping Utah homeowners. But there are unethical business owners out there.

We’ve learned a lot about overcoming a negative industry reputation, so we have done everything by the book to prove to homeowners that we’re different. We are licensed with the Utah Department of Real Estate, and most importantly, we offer a money-back guarantee. If we can’t modify the loan, the homeowner can get their money back.

Any tips for other businesses who have to combat bad seeds in their industry?

If you have some bad seeds giving your business a bad name, you have to legitimize yourself. Join every professional association you can, earn every applicable license and make sure you are in compliance with all laws. Then, offer a guarantee. And finally, provide good client references. If customers can talk to people who had a good experience with you, they’ll be able to trust you.

Thank you to Allison Yrungaray for conducting this interview for Utah Valley Business Blog.

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