Listen, this is a vent. If you don't want to hear my rant don't read this because it may hurt when I step on your toes. You can NOT take an online class and become a "Certified Loss Mitigator". There is NO SUCH CREATURE recognized by lenders. Period. Got that? Furthermore, just because you read one of my articles or attended one of my classes (that I've been teaching since 2001 by the way) does not make you a Short Sale Expert worthy of commenting on a process of which you have only a cursory understanding.
People continuously gripe and complain about how long it takes to do a short sale from the lender's side. NEWS FLASH: the *crap* being submitted by "Certified Loss Mitigators" is about as useful as turn signals on a coffin. The reasons it takes forever are manifold but here are some of them:
Receiving an offer directly from a "representative" even WITH all the correct documentation BEFORE the property is in default! OMG - STOP that.
Receiving a ridiculously low offer even with the paperwork in complete order. Don't you know it still has to be researched??? That wastes everyone's time and stacks up the pipeline.
Getting piecemeal documentation with the offer. First make sure the property is a viable short sale - if it has 20% equity it is most likely not viable. If it is not yet in default it is most likely not viable. If it is the only foreclosure in that subdivision it is most likely not viable. If it has not been listed for sale by a real estate professional it is most likely not viable. If the borrower has never spoken with the collections department from the lender it is most likely not viable.
A local news report about 3 weeks ago said nearly 45% of home owners who are foreclosed on go all the way through the foreclosure process without once communicating with the lender. I have no pity on them.
Getting a 3 page counter of the BPO - do you think the loss mitigator truly just takes your word for everything you write in your rebuttal? It has to be VERIFIED and verification takes time and costs money.
What a loss mitigation department is not:
A group of psychics with uncanny ability to know just by reading your fax or email whether your offer is good or not.
A bunch of memory geniuses with every address and home owner's name in America by property value and payment history.
Moved by emotion on reading the form letter styled hardship letter you sent in this morning at 10 expecting an answer by noon.
Entertained by your wealth of knowledge about the short sale process.
Stirred to faster action because of threats and screaming.
Some have said, "why doesn't the lender just hire people to help process these files?" Well, you're the same people who think you can become a "Certified Loss Mitigator" by taking an online course. To be a true loss mitigator requires a deep understanding of the lender's guidelines, researching the market area, verifying statements made in the application for short sale and much more. Do you know that applying for a short sale is "unapplying" for a mortgage and it is treated with the same level of scrutiny?
Lenders are NOT EVER going to take your word for the value or why the borrower can no longer afford the home. It must be evidenced. Furthermore any false statements made during the process can and will be considered fraudulent and carry the same penalty as making false statements during the submission of a loan application.
Realistically in today's climate you should be very happy if your short sale goes through in less than 60 days. Seriously.
Tell you what - I have been teaching the short sales process to real estate agents, investors and others for many years at a cost of as much as $500 per seat. I have stopped charging for it because over the last 12 months it seems like everyone is a short sales guru. I actually had a "guru" go through my class, never do a short sale, and now is a very highly paid "Short Sale Expert" being billed as one of the tops in the nation! Here's what I will do: You join me live at the link below and ask me your short sales questions and I will answer them. The schedule is Monday, Tuesday and Friday at 11AM Eastern and Wednesday and Thursday at 4PM Eastern. The 11AM is a 30 minute broadcast and the 4PM is a 1 hour broadcast. Then on Sundays at 10AM Eastern is a very informal 1 to 1.5 hour open floor "chat". If participation is moderate (5 or 6 people interested) I will do my full 4 hour Fast Track to Short Sales Seminar online for FREE for those people who have shown enough interest to view the broadcast and ask questions. I will do it in four separate 1 hour sessions over a 2 week period. I will NOT video tape it for later playback - you must participate live.
NEW DAILY SCHEDULE
Topics include the real estate market in general, interest rates, short sales, declining markets, buyer trends and much more!
Hopefully I'll see each of you there and I want to get around to each of you as a guest speaker as soon as we get the bugs ironed out.
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