Special offer

Learn to be a Loss Mitigation Specialist what crap!!!

By
Real Estate Agent with 24/7 Realty Inc.

After 10 years in default servicing anyone telling you that you can do loss mitigation by taking a web based courses if full of crap!  Unless you are 1 of of 100 you will simply not posses the skills needed to convince an institutional loss mitigator or loan workout officer that your client deserves a break.  The lenders will simply use you as a means to gather information about your client.  Simply said to assist them in nailing the door shut!

Loss mitigation is serious business, most of the upper managers at any major lender have gone to what is termed credit school and are defined as credit trained personel.  These web based training outfits will not pass their final tests.  These managers are trained in credit risk analysis of asset backed securities.  They can take a glance at your clients financials and tell wether or not things add up.  If things do not add up then your client is doomed from future attempts or at least will have an up hill battle.

Agents save your money, do not pay for this junk.  Agents should do what agents do best, sell homes.  If a client needs a person qualified to do loss mitigation refer them to a lawyer who practices in either creditors rights or bankruptcy.  And no I'm not saying that people should file bankruptcy just that bankruptcy lawyers specialize in debtors rights and most of the good one, not the advertising kind, do loss mitigation all of the time to keep their clients out of bankruptcy only using the B word as a last resort.  Take my word when a lender gets a letter or call from a bankruptcy or creditors rights lawyer concerning an account they take the call and the workout goes much faster.

Yes it may cost you client more $$$, but more $$$ is little if their home can be saved.  This versus the uneducated loss mitigator who started last week was educated from the web and who will quit in 6 months when they have made little to no $$$.

Endea Thibodeaux
Tarver Realty Group - Washington, DC
CLHMS, RECS

A lot of people are getting on the band wagon.  This investor in the area is charging $695.00 for a short sale class.

Jan 21, 2008 07:20 AM
Zen Ziejewski
Keller Williams Realty - Laguna Niguel, CA
Laguna Niguel Real Estate

I like someone who calls a spade a spade!  Great advice and a great post!

Jeff, If you know anyone interested in real estate in Orange County CA I'd be happy to pay you a referral fee for sending them my way.  Feel free to check out my website for Orange County market insight at http://www.zensellshomes.com/ or my blog at www.zensellshomes.com/blog.asp.

Keep up the good work!  Zen  

Jan 26, 2008 03:42 AM
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group
Hey Jeff... I am being approached by acompany right now,,, $ 1,995.00   I can't see paying anyone to teach me on a web based course to then go to work for them for 40% of the loss mitigation commision....I agree with you, send them to a real qualified attorney, thats the best bet for all concerned..Great post
Jan 26, 2008 10:06 AM
Heather Wagenhals
HQ Real Estate and Investment, LLC - Scottsdale, AZ

You are so right on. These folks have got to realize you can't mitigate a loss that was based on fraud to begin with. I don't think the Fed should bail anyone out either. The folks who just hit hard times WILL make it through the system (without these web predators) and the others living beyond their means trying to Surpass the Jones', should have to reap what they sow. Shame on the unscrupulous mortgage lenders that perpetuated this to begin with. LIBOR's and MTA's were never designed for the wage earner EVER! They are sophisticated lending tools for large loans where folks have discretionary income to afford a bump in payment. Part of why I switched from lending to real estate was the legislators didn't want to hear about our attempts to create loan officer accountability to be more in line with the compliance that a stock broker goes through. I predicted this on my radio show 4 years ago. I could not work in a field where Fradulent Documents R Us was run off my copy machine. Ugh. Hopefully the tough times will send these fly-by-night lenders and real estate agents back under the rocks they crawled out of.

 

Thanks for the vigilence!

 

Heather Q!

Feb 07, 2008 06:33 AM
John Kim
Property Services & Short Sale TC - Irvine, CA

Jeff,

     I do agree with you on the point of proper education and training in this specific field.  Moreover, this industry should also be regulated to a standard much greater than what is deemed acceptable.  The people should be represented by professionals that are well educated at a more universal standard of education.  An Associates should be mandatory but a Bachelors Degree with a certain understanding of finance should be the standard.  The internal corporate classes that the loss mitigation agents and managers go through should be given to embellish the basics of what was taught in school.  I'm not saying take courses at MIT or Stanford that could bring you to a vocation within Nano Technology but rather know a little more then the 101 levels.  These are the largest purchases one could make in their life and the hands that are involved should reflect that as well. 

     A constant intro that I always say is to advise in writing that my clients speak with a lawyer and a CPA on any short selling matter.  And I inform the Realtor should work with those advisers as much as possible.  Having worked with many Realtors that are very seasoned but many still make the errors in their listing agreement verbiage specific to short selling a home.  And over 30% of the BPO's are done incorrectly which leads to a difficult and unnecessary extension to my negotiations.

     I have been approached and then offered by few large and a couple of small broker companies in OC to supervise the short sale department as well as in the Loss Mitigation Department for a mortgage company.  So I'm guessing I did well during the interviews but that may also be do to the referrals I received from the people I've worked with within their company.

     Experience is golden but only with a sound foundation if not then that only leaves us at where we are right now in the Real Estate industry.  I have personally seen the dark side of this industry but I'm happy to say that none of my lending related clients have gone into default.

Feb 07, 2008 01:24 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Hi Jeffrey & others, YES I agree that $2,000 is too much to learn to be an LMC.  Just to be fair, there are some GOOD companies and some not-so-good companies that help homeowners.  I've worked with borrowers and saving their properties from foreclosure for several years.  As you can see from the posts, sometimes the lenders don't respond to borrowers for months, so in some cases it makes sense for the borrower to hire a professional LMC or attorney.  I personally use and recommend Pre-Paid Legal Services for any and all legal document review & correspondence at an affordable rate.

Regarding the LMC positions, the better companies do not train you to negotiate with the lender.  They train you to market the service & get clients, and their professional in-house attorney/consultant negotiates with the lender directly.  This is the way it should be!  However, I'm unhappy that they charge the homeowners/borrowers so much money (over $1,000)!

Regina Brown
Real Estate Broker, author, ePro
www.Stop-Foreclosure-Fast.info

Mar 04, 2008 06:57 PM
Jason Grams
none - Roseville, CA
I agree.  If the homeowner wants to work out something with their lender, they can do it themselves or hire an attorney.  I give them all of their options and conduct my own financial analysis ( I used to be in the banking business) and determine whether or not they have a shot...if they do, they just got a free consultation and can contact their lender and/or attorney before paying a dime.  If not, then we list it for sale.  In fact, in California charging a fee for loss mitigation is illegal (unless you're a lawyer).
Mar 05, 2008 06:04 AM
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate
I don't know about LMC here but I am sure we have them if possible.  There are always agents who are looking for anyway to make a buck and sometimes can be a little successful at it.
Mar 09, 2008 12:10 AM
Rich Kruse
Gryphon USA, Ltd. - Columbus, OH

Jeff,

I spoke with a company owner the other day about closing his company and selling off the assets to pay debts.  I could not stress enough that the first thing he needed to do was talk with an attorney qualified in this field.  Could I negotiate with the lender?  Yes.  I have a very good relationship with their in house counsel and the workout officers that work this area.  There are 2 main issues.  One is that this is not what I do for a living.  Second and most important for me, is that I do not have insurance coverage for this activity.

Lastly, and I am just talking aobut myself here, it took me about 10 years of working various facets of restructuring, bankruptcy and loan workouts to be comfortable handling a commercial deal alone.

Maybe it only takes a week or two to learn how to do it on someones home though.  I'd still be worried about the insurance aspect.

R

Mar 09, 2008 01:56 AM
Ronell Moore
180 Degree Floors - Nashville, TN
Transforming your Flooring into a work of Art.

Jeff,

Great post i have a friend of the family who has be had by a few of the so called professionals.

Mar 14, 2008 09:39 AM
Jennifer V-E Johnson
Jennifer V-E Johnson, Reston Expert - Reston, VA
Reston Expert (202) 239-5116

Jeff,

I was wondering if I needed to write a blog on Realtors who are seeking to become loss mitigators.  I have had 6 or 7 calls to become a loss mitigator from other Realtors I know just in the past 2 months.  I have personally been through loss mitigation and know that loss mitigation is not a "quick" thing to learn.  It took almost two years of training for me, including numerous classes and tests and I am still not done.  The saddest part is that loss mitigation is NOW the new buzz word right behind real estate investor, flipping, short sale expert, etc.   Thanks for the post.

Apr 04, 2008 03:21 PM
Ted Cowan
Strategic Real Estate Coach - Pacific Palisades, CA

Jeff,

I definitely understand how your opinion may have developed . . . it's been interesting watching short sales take off the past few years . . . and it's been interesting to see how real estate agents respond.

As for your comments on doing what agents do best . . . I couldn't agree more. When I negotiated deals, I was also trying to buy, rehab, and sell property . . . too much. Realtors should stick to what they do best, find and sell property.

However, your comments about loss mitigation need some clarification.  I believe you when you say that loss mitigation requires a certain level of skill on the bank side . . . at a high level. . . but on the side of the investor/Realtor . .  it's really a formulaic process.  Moreover, it's not even negotiation . . . it's facilitation of the deal.  The bank holds all the cards. 

As for whom agents should turn, there's no easy answer.  A local company that specializes in these transactions is best . . . let them negotiation while the agent finds the buy, but qualify them.  How long have they been in business?  How successful have the been?

 

~ted

freeshortsalestuff.com 

Apr 08, 2008 09:53 AM
Callie Thompson
Property Xchange Solutions - Frederick, MD
Property Xchange Solutions

I paid nothing to be a case mgr at Save My Home USA. Our Real Estate Attorneys do the mitigating and negotiating.

Nov 20, 2008 12:59 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

I like the idea of letting attorneys handle it all, which bypasses the lender's phony "collection" department.  There are many good companies that do this work for the borrower, I have 2 that I recommend for my clients.  Both offer most (or all) of the borrower's money back if they can't get their loan modified.

Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com

Nov 20, 2008 01:04 PM
Josh David
Bridgeview Bank Mortgage - Tampa, FL
Purchase Specialist... www.joshdavid.us

Hey Jeff,

 I can help you negotiate your short sales, w/no fee to your client(s), putting you in a listing agreement with your seller, and a commission agreement w/my company @ 2.5%? You will be paid your normal commissions on all of your short sales. You can basically put us in touch w/your seller and sit on the sidelines and let nature take it's coarse.

Interested?

JD

704.998.7609

Nov 25, 2008 06:18 AM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

You have to laugh, all those get rich quick schemes focusing on the hot topic of the day, what happened to working for a living

Dec 01, 2008 04:40 PM
Anonymous
Jeremiah

I would have to agree with Jennifer Loss mitigation isn't something you can pick up over night though If you work at it's not that bad. I am a loss mitigator currently working on the Obama Hamp plan. I had no experience in banking what so ever before I got the job.

Dec 19, 2009 04:43 AM
#20
Anonymous
Marvin Von Renchler

I dont think anyone should be allowed to call themself a loss mitigation specialiost or be connected to the words loss mitigation in ANY way except for the job description of a REAL loss mit specialist working for a lender/servicer or processing company. I recently applied to a giant new firm put together for the loss mit needs of several institutions and even with 30 years mortgage experiences and actual underwiting experience for several wholesalers and a well known bank, was turned down.  You really have to know the ropes to this. You cant just hang up a shingle and tell people you can get their loans modified or workout anything on their loans.  This company runs everything through HAMP first and it takes schooling just to know that process. You must REALLY be able to underwrite all forms of income/debt for real ratios.

Its not brain surgery but certainly isnt paddle ball.

Apr 04, 2010 07:30 AM
#21
Anonymous
Deborah

Even though I know this response is old, I have to disagree with you. I never paid for a class like this but I do know that Loss Mitigation is very helpful if you know what your're doing. I would say that there is so much mortgage fraud that you have to be careful with who you trust. However, I am a loss mitigation specialist and I have helped lots of people save their homes. 

Jan 07, 2011 05:38 PM
#22
Anonymous
Rick Colson

So loss mitigating training is an issue it sounds like. Well if I had to rely on attorney's or "professional mitigators" to handle my short sale or loan mods I would be broke and non the wiser. As far as paying some 2K I would if it was worthy.

Seems to me the few that can teach are to busy making real money and why should they bother to teach the general public? I try some times but people recieve information better when they have to pay for it.  My info. and contacts are not for sale. But we have good success with: Short Sales even getting foreclosure resended to continue with the short sales.

Avoidforeclosure.listingbook.com

LagunaBeachpch@gmail.com

Nov 10, 2011 03:01 AM
#23