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What is Loss Mitigation Really Doing!?

I can't believe these Loss Mitigation departments! I would love to see who is managing these departments. Surely it's a 12 year old!

Correct me if i'm wrong, but the purpose of these departments are to "Mitigate Losses" isn't it? Then what are they doing!? The bank told me exactly what they wanted to close a deal out. Never mind the amount was much more than it was currently worth (my opinion of course). I had a buyer in the beginning but their lender decided they would not lend the amount requested and back out of the deal.

After 4 grueling months I get a new buyer! Hurray! wait now the lender says they believe they want more? They suggested that the property went up in value. Are you kidding me. Have they not heard of the declining home values all around the U.S. ? So, am i to believe a vacant property with foreclosures all around it all of a sudden gained more equity!

Once i got that notion out of their minds, they then said i'd have to start all over. I then did what i know to do and asked to speak with their boss and their boss. I went far enough for someone to make an intelligent decision. Fortunately for me the guy I got on the phone used to be a mitigator long ago when i first started doing short sales. He remembered me and said he'd push the file through to get the signatures i need (his being one of them). I urged him letting him know this guy already has the cash at the attorney's office.

Keep in mind i had a letter of acceptance before and this buyer has offered to pay the exact same amount. Nothing and i mean nothing on the HUD has changed.

so, why in heavens name is it taking weeks to get this done. You would think with all of the short sale offers they get that are stupid or not even worth reviewing, If they got one where they got exactly what they wanted they would make sure this got off their desks and off their bottom line. DOES THIS SOUND FAMILIAR?

And so I wait....(I can only hope my buyers does the same)????

p.s. The lender is HomEq

Posted by Clark Garrison, "LOAN MODIFICATIONS" on 03/06/2008 06:42 PM

Comments (15)

short sales, home owners, preforeclosure, foreclosure, reo, agents, lenders, banks, loss mitigation

15 Comments on What is Loss Mitigation Really Doing!?

MAR

2008

Each loss mitigation department is different. Some good some bad. They are just as overwhelmed as anyone in this process. Make sure you have EVERYTHING that you need before you submit a short sale package and make frequent phone calls to find out who is actually in charge.

that's not the case here Jeff. And they can't use that we're so overwhelmed we can't even get rid of a property story. Successful company's don't complain they just get it done. Can you imagine IBM saying sorry where too backed up to service you data systems. Trust me i've visited a few L.M. Departments and your local Mcdonald is managed better!

I have been hearing more and more of these stories lately. I feel for you, it is very hard to keep a motivated buyer waiting for ever. Sometimes they decide to keep looking while they are waiting and find a motivated seller who can make their own decisions.

I just got a short approved by Wells Fargo. The hold up was the PMI rep and once we got him to accept, it went fast.

Klarque, you're right these departments have individuals making decisions that clearly aren't the brightest one on the block. I think they're overwhelmed and they're throwing in any ole body to handle a short sale file.

That's exactly what i'm afraid of Joe.

Lynn one of the first steps to resolution is to build a system. By now lenders should know the epidemic is upon us. They should have systems and an organizational chart in place to handle the loads. If they don't get it straightened out this is only going to get worse!

MAR

2008

KLARQUE,

I agree with you !!! Most of these lenders are losing a lot of money for stupid decisions. There are losing buyers all the time.

I just got a short sale listing where HOMEQ is one of the lenders. I am getting my package ready- ANY SUGGESTIONS?

PRAY! No there are usually pretty good with the processing aspect of short sales. I'm just having one of the weeks! :-)

Klarque, absolutely. You'd think that big business would be familiar in implementing systems and procedures and steamlining to avoid any unecessary steps. Plus why don't they see the Realtor or servicer as being on their side? Soon hopefully

MAR

2008

Hi Klargue,
You would think everyone would want to expedite the process, seems there is always someone (something) in the mix that slows things down.

Lynn, i too hope that lenders will utilize us as people who can help, not that we're all trying to take advantage of their scenario.

Cynthia i don't understand it but the one thing I do know.....It is what it is!

MAR

2008

Klarque, How frustrating. You would think by now this is a common enough occurance the banks should know what role they play and how to expedite the process.

MAR

2008

So true it's scary Debbie. However the truth is they don't

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