If you are reading this post, I'd recommend that you read Part I of this series here.

OK, now that you are caught up on the purpose of this series, you are probably wondering if I have it "out" for Loss Mitigation companies.

To answer, no, I don't have it "out" for Loss Mitigation companies...or any other company for that matter. On the contrary, there are times when I think engaging the services of a Loss Mitigation company will benefit all parties involved.

However, I do strongly believe that when one is considering hiring a company or individual for a particular service (such as negotiating the loss a bank will take on the sale of a home), that there are questions that one should ask (and get the answers to, in writing)...especially when the success or failure of that company could have a life lasting effect on you and your credit.

Here are 11 Questions that may be helpful to Sellers who are considering hiring a Loss Mitigation company:

  1. What is the scope of your service?
  2. What do you charge for your services?
  3. Are there any upfront fees that I (as the Seller), or my Real Estate agent will have to pay before my file is forwarded to the bank for approval?
  4. Is their a flat fee or a percentage of sales price that is charged for the negotiation of my short sale with my lender? If so, what is that fee?
  5. Who is responsible for paying your fee?
  6. If your fee is customarily paid by my lender, what happens if they do not agree to pay the full amount?
  7. If the bank agrees to your fee and the Buyer does not close, do you still get paid? By whom?
  8. Do you have a real estate attorney on staff?
  9. What is your success rate?
  10. Does your company place a lien on my home if the bank does not agree to pay any portion of your fee, even if they agree to the short-sale?
  11. Is there a written agreement I must sign in order for you to submit my case file to my lender? If so, may I have a copy?

While this list is not nearly as comprehensive as it could be, it is a good place to start. In times such as these, knowing what services are being provided and what those services will cost (and who will pay them) is critical.

As a full-time Real Estate agent in Central Florida, I caution Sellers to make sure that they know the answers to these questions (and others) before hiring a Loss Mitigation company...or the Real Estate agent who told them that they were in "partnership" with one.

In closing, short sales have been in the marketplace for years...and have been successfully negotiated by attorneys and Real Estate agents long before Loss Mitigation companies became a household name.

Stay tuned for Part III of this series which will address "What Buyers & Their Agents Need to Know When a Loss Mitigation Company is Involved"

For more information on selling your Seminole or Orange County, FL home as a short sale or buying a Seminole or Orange County, FL short sale home, call or text me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com

Advocating for Sellers and Buyers is my passion...

LaShawn Norden, PA, REALTOR, RE/MAX Central Realty, (321) 377-0157, LaShawn@LaShawnNorden.com, www.LaShawnNorden.com

 

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4 Comments on Part II: 11 Questions Sellers Should Ask If Considering Hiring a Loss Mitigation Company

FEB
08
2009
298,289 Points 3 Featured Posts Localism Sponsor Outside Blog Hit Router

It's true a lot of people are just out to make a buck now a days and if people keep this in mind they can hopefully make the right decision.
6:14pm • #1
FEB
10
2009

In Florida, it is ILLEGAL to charge an upfront fee for mitigation. (There might be an exception to his, but I don't know how or where it is clearly outlined).

I do loss mitigation work, for a fee, and my clients are very happy to pay it at closing. I have had training, and have worked with lenders for over eight years as a mortgage originator. I have worked with agents for a year on the short sale process, and now I do it for a fee.

There are companies out there that I wouldn't work for/with, and are not what they advertise or just outright snakes, as in any profession. So, one or a couple of bad experiances can be expected.

You do have to be careful on who you hire and what to expect. Everyone knows Short sale are difficult, so not knowing what the company you dealt with did, I can't say they didn't have the right intentions. They companies out there doing loss mit are very overwhelmed, and I agree are not preforming. But sometimes, you just can't get a lender to bend the first time around.

There are people out there that want an agent that spends most of their time selling and marketing their house (or finding them one). You hire a mortgage professional, and I'm sure the ones you recommend didn't just come out of thin air. Same with a closing company, home inspector, etc..., so why not hire a qualified loss mitigator. Some agents want to do the mitigation, and others don't. You have done what you needed to be comfortable doing them yourself, and that is great. There are options for agents that haven't, or don't have the time, or want to deal with the hassle, but don't want to pass on a listing. Let's face it, everyone has lost equity in thier homes. It is a good option to hire someone, but just ask them what you would ask anyone you are hiring.

Mitsu O'Riley         Independent Loss Mitigator

 
2:42pm • #2
FEB
13
2009

We encourage everyone to stay away from third party mitigation companies, always...
8:15pm • #3
FEB
14
2009

Why?
10:05am • #4


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LaShawn Norden, REALTOR, (321) 377-0157 Your Real Estate Advocate in Central FL

Longwood, FL

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Keller Williams Heritage Realty

Address: 1150 Douglas Avenue, Suite 2020, Altamonte Springs, FL, 32714

Office Phone: (407) 862-9700

Cell Phone: (321) 377-0157

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Selling or purchasing a home can be exciting and scary at the same time! The goal of my blog is to educate Central Florida Buyers & Sellers about the Good, the Bad & the Ugly things that can happen in a real estate transaction! As an advocate for consumers in Orange, Seminole and Volusia County, I especially enjoy working with first-time home buyers, relocation buyers, sellers of distressed property and luxury home sellers. Native to Central Florida, I'd welcome the opportunity to be your advocate too!

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