The Secret to Successful Short Sales, Loan Modifications and Avoiding Foreclosures... is COMPASSION!

Some hardcore loss mitigators and Realtors may already be shaking your heads at the first line of this post. That's perfectly OK. It's understandable because transactions—whether it's a short sale, loan modification, or guiding a client through the "how to avoid foreclosure gauntlet," are ALL initially dependent upon fact gathering and building the strongest case file possible. Any loss mitigator can assist their clients with the selection of the best program, complete the correct forms, work with harried lender loss mitigators, meet crucial time-lines, and utilize tried and true negotiation tactics. However, without compassion many of these transactions cannot be completed successfully.

Therefore this post does not address:

• loan modification programs
• lender policies or methodology(s)
• forms
• real estate law
  

What this post does address is how to run the gauntlet with heart... how to represent your client(s) in a way that let's them know they are not a number in a faceless cue. This is the key to success.

We begin with the client interview where we must ask a myriad of very personal questions. The majority of these questions concern their financial hardship and the numbers that determine the hardship. Yet the critical importance is how you ask these questions. I ask them to tell me their story and I listen, listen, listen. I do not interrupt no matter how long it takes. I do not get frustrated when their children are crying or their spouses come unhinged. When they get off course, I gently get them back on track. When they become emotionally upset I empathize... this is when, if appropriate, I tell them a bit about my own financial struggles and/or having to negotiate my own short sale. That's when they know I'm REAL and have walked in their shoes. After that, most of my clients become less intense emotionally and are better able to focus on the importance of what WE can do together to help improve their situation.

Once the questions have been asked and verified we begin on a workable solution. The numbers (missed mortgage payments, loss of employment, illness, death, etc.) obviously are important. However, it's the way you manage the numbers and the situation that makes all the difference in finding a workable solution that you present to the lender. It pays to have a workable solution letter that is not only accurate, but relates the situation in a very personal and responsible manner... and if necessary you make the lender's loss mitigator weep.

Unfortunately, most lenders are overwhelmed by the sheer numbers of cases streaming in and are understaffed to handle the large case load. This doesn't bode well for the process, but if you approach the lender the same way you do your clients - with compassion and understanding - you will inevitably make head-way where others do not. I always let the lender's loss mitigators know how much I appreciate their help. I don't yell, threaten, or curse. I am always firm, fierce and relentless, but it's all done with respect. I always say please and thank you. When they try to talk over me, around me or through me, I keep talking quietly and persistently... you literally wear them down with kindness. It gets their attention and it makes them remember you in a positive way - imagine that!

This scenario continues until you finally have all the pieces to the puzzle and place a clean, complete file before the lender. Of course, your work is still not done. Following up at each and every step during the process is essential. Keeping your client and the lender on the same page makes this process run more smoothly which lessens the stress on everyone. By maintaining a positive outlook and treating everyone involved with compassion and understanding, a tough fight becomes less threatening, therefore, more appealing to a lender.

I've been at the closing table with lenders from hell and as time passes it has become uglier than ever, but I've been able to turn them around more often than not... and it's all been because I negotiate fairly and with heart!

This is the secret to my success as a loss mitigator and it can be yours as well. I don't do random acts of kindness, I take action coupled with compassion and it works.

Images courtesy of Dreamstime.com

Copyright 2009 Linda Bourgault, lulugraphix and DD Enterprises. All rights reserved.