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Loss Mitigation Companies

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Real Estate Agent with Wilkinson & Associates Real Estate

I've been contacted recently by a Realtor/Broker on what appeared to me to be a very reputable Loss Mitigation Company.  The purpose of the solicitation was to recruit and train CLMS (Certified Loss Mitigation Specialists--a title you earn after a 4 week class) in an effort to preclude a possible foreclosure or prevent the need for a short sale.  In the event that this company could not help them, they would then let me know...and I would put the home on the market.  The homeowner has spent nothing to find out if they qualify for a loan modification.

What I in saw this was a way for my company and agents to offer what I thought was a much needed service and continue to build our brand in these uncertain economic times. 
After all, many homeowners are selling now because they HAVE to, as they can't afford to keep the home. It was my thought that many of these people want to stay in the home until the market rebounds, and not have to take a loss now.  I would be able to keep in touch with them, and having helped them STAY in the home, I may gain a referral for a buyer or a listing.  Win/Win situations are what I've built my business on.  Sounds like an ok strategy, right?

I first contacted the legal counsel of my state association who told me it sounded iok and didn't appear to violate any laws, as long as everything was disclosed BUT to be sure to check with the NCREC to make sure, as well as the Banking Commission.

The legal department of NCREC quickly told me...no way should a NC Real Estate Agent get involved in this!  This is to warn others who may have seen this as an opportunity for goodwill to know that this could open them up to multiple levels of litigation as seen by NCREC.

Comments(4)

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Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Jul 26, 2008 11:14 PM
Rick Sergison
EXP Realty of Canada Inc., Brokerage - Pickering, ON
Durham Region Real Estate Blog

I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!

My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post. 

I hope you will look into the many groups as there are some great group both local and broad based,.... 

enjoy!

Jul 27, 2008 01:07 AM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Sandi,

Sorry to have kept you awake all night with the photography perspective.  LOL

Mike in Tucson

Jul 27, 2008 02:38 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Welcome fellow North Carolina Realtor!  You are so right about this.  They make it very clear here that we refer our clients to attorneys for just about everything!

Jul 30, 2008 02:53 AM