Loss Mitigator - The Critical Link to a Successful Short Sale
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

If you are going to be a successful Short Sale investor then the most important relationship you can develop is not with the homeowner or the REALTOR representing them - although both are critical. 

No, you have to learn how to get along with the Loss Mitigator employed by the mortgage lender holding the delinquent note.  Not only do you have to get along with them, you have to get into their head and understand their strengths and weaknesses - similar to a chess game.  The difference here - you want everyone to come out a winner - the homeowner and their REALTOR, the mortgage bank and their loss mitigator and you the happy short sale investor.

Negotiating with the loss mitigator is actually more like a dance then a chess game.  You have to develop a few moves that you can impress other most of the time and you should get what you want.

Just like at a dance, you have to discover the strengths and weaknesses of your partner.  What is it that impresses them?  Do you know what will make them upset or frustrated?  How ling have they been in the loss mitigation department - are they new or a seasoned and savvy pro?  The more you can get to know about the party on the other side of the chess board - the better your chances are!

When working with the loss mitigator at the lenders office, I strongly suggest you remain 100% honest and ethical at all times.  I know every little white lie I ever tell comes back to haunt me at some point - so please do yourself a huge favor and stick to the truth and deal honestly and ethically.

Probably the biggest thing you can do to impress the loss mitigator is to know what the heck you are talking about.  For example, when you prepare your short sale package make certain that you have everything they need.  If they want three months of pay stubs and bank statements - don't send two.  Remember that a short sale negotiation is very time sensitive and you not doing your part right will only delay the procedure and frustrate the heck out of the loss mitigator.

Stay on top of your game.  ALWAYS be professional, friendly and courteous.  Know what is expected of you and stay in front of all of your deadlines.  Believe me, the loss mitigator will appreciate this and if they are experienced they will definitely know the difference between what you are doing and what so many others do - scramble.

You also need proof that you can close the deal.  If you have cash backing you up, then provide proof of those funds.  If you are borrowing the money - you want to make sure you have been pre approved for the loan and not just starting the process along with the short sale.  Nothing is more frustrating than working all the way through a deal only to find out that the buyer was all talk and never had the funds to begin with.

The same holds true if you are planning on flipping the property without ever personally taking possession - it is your responsibility to make sure that all of the end buyers paperwork is straight and that they either have or can get the money needed to close as soon as the lender approves your package.

If the loss mitigator you are dealing with is inexperienced you may very well have a time management problem on your hands.  Like so many other professions, a skilled loss mitigator is worth his weight in gold.  Those in the early stages of their career are often troubled with time management - handling so many files at once all in different stages of mitigation and foreclosure.  It really can be overwhelming.

Should the loss mitigator be inexperienced, then you should take control.  Always offer a date and time that the two of you will speak again to review the next step in the process.  Be very clear in your communication - both verbal and written.  It never hurts to ask the loss mitigator to read back what they wrote down - just to make sure there is no miscommunication.

Of course, there a few things you should avoid with the loss mitigator.  Don't overstay your welcome and call too frequently - especially if you have nothing of value to add to the transaction.  The last thing every loss mitigator wants to hear is, "I was just calling to see what is up and want to make sure everything is going smoothly.  Would you mind giving me a progress report".

You know short sale investing is a small world and if you plan on riding out the current storm that is hitting, then there is a better chance than not that you will cross paths with this loss mitigator again.  Wouldn't it be nice if you did something that would leave a lasting positive impression of you in their mind - it could be something as simple as a thank you note.  How about if you attach a box of chocolates or a humorous coffee cup.  Go ahead and congratulate them on doing a great job and believe me the next time you have the opportunity to do business you will be warmly remembered.

Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,

John Occhi, Hemet CA REALTOR 

Realtor Consultant to Foreclosure Investors
Mission Grove Realty