Someone reading this post will think it's about them. If it is you then do something right for once go turn yourself in and get out of the business of hurting sellers, buyers and my industry you piece of trash.
Today I received a call from a friend and broker who is representing a buyer in a short sale transaction. He called me because I have been on the lender and trainer side of short sales longer than the vast majority of so called "short sales experts" have known the terms. Because I am a HUD Direct Endorsement lender for FHA loans and a Fannie Mae direct seller I know the difference between guidelines and lender overlays. The latter are designed to protect the middle men and often enhance the guidelines for underwriting government and agency loans. So his question was whether or not his buyer was being denied because of a real guideline or something only that lender does.
Since the initial question was about seasoning on title and flipping the answer was very simple - 90 days required from purchase to sale date. In other words the useless piece of the puzzle, the "wholesaler", would need to be on title as recorded in the deeds and records office, for 91 days prior to the clear to close on the sale. I offered some ideas that would help his client take possession of the property prior to the consummation of the sale which included a bona fide lease purchase but when I began to question more specifically some big bright burning flashing red flags started popping up.
First I asked how long the "wholesaler" had been on title. When I found out he has not yet closed and this is a short sale I asked how he got into the mix. The broker indicated the guy is a "Loss Mitigator". Oh, so he works for the lender? No, he's just some guy who owns a loss mitigation service and is wholesale flipping the home from the owner to the purchaser. Oh, a scum sucker!
I have written about "Loss Mitigators" before and I'm going to kick some teeth with my next statement but swallow them and like it if it's you. "LOSS" MITIGATORS WHO DON'T WORK FOR THE LENDER ARE USELESS, COSTLY AND UNWELCOME PIECES OF THE TRANSACTION. I have heard the FTC is investigating you and I'll be happy to provide them with all the case study and education they need to get you out of my industry and far away from real estate.
Naturally I wondered how the "Loss Mitigator" got involved and was very VERY intrigued to learn the listing agent had told the buyer's agent (my broker friend) he would have to deal directly with this "Loss Mitigator".
ORLY?
So the LISTING AGENT cannot deal with the BUYER'S AGENT and the BUYER'S AGENT has to deal with this "Loss Mitigator" who is NOT an employee of the lender?
Interesting. So just who is this so-called "Loss Mitigator" who is not an attorney, is not a real estate agent and does not work for the lender?
After a few more questions and answer I discovered the preferred title agent for the seller had been changed to the preferred title agent for the "Loss Mitigator" who shares and office with the new title agent.
This is probably the best of all: The buyer's agent sent the contract to the seller's agent and the contract came back with the home owner's name lined through and the LLC (company name) of the "Loss Mitigation" dude written in.
My advice? Call the Real Estate Commission, call the bank holding the note on the property and run! I also added to have the buyer contact the seller directly and ask who this "Loss Mitigator" is and what the exact negotiated sales price is. The contract the buyer currently has is probably useless since the "Loss Mitigation" Company (and I sure hate using that term because it's as bogus a use of the terms as they come) signed as the seller. I'm sure Wells Fargo would be very happy to know about this case since they are the ones who allegedly hold the security instrument.
Scumballs, bottom feeders, leaches, parasites, and crooks - I can smell you 864 miles away and you need to get out of this industry. You are in part to blame for the condition of the industry today. You prey on people with your fancy titles that don't mean squat and in fact are INTENDED only to confound the innocent and those who are already facing financial devastation. YOU ARE ON MY RADAR and there are thousands like me who remain silent.
There is a right way to profit from real estate and the success to be enjoyed even in this market can be huge. This is the way thugs, crooks and cheats do it. I don't care WHO you are: If you don't work for a bank, if you are not BUYING homes and adding value before flipping them, if you don't have a LICENSE to represent buyers and sellers, then YOU are an unwelcome turd in the punchbowl.
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