How can a Loan Officer involved in the Loss Mitigation business help a real estate investor and Realtor make money?
Actually, in several ways.
•1) We can help you stop wasting time chasing deals that will never close
•2) We can help you identify those deals that lenders will accept as a short sale
•3) We can help you determine the best price a lender will accept for a property
•4) We can help you get financing in this market
Here is the issue:
There are literally tens of thousands of homes that have already been foreclosed on, are about to be foreclosed, or the current owner is late on their mortgage payments and is heading into foreclosure. It really is tragic for the home owners but it is going to happen for most and it will happen regardless of any Government bail out package of Wall Street. Many industry analysts report that nearly $1,000,000,000,000 (yes, that is one Trillion Dollars) in adjustable rate mortgages will reset in 2009 and 2010.
Given the credit crisis we are in, only Pollyanna herself expects those payments will drop. The tsunami of foreclosures has not gotten here yet.
Sad as it is, the real estate market is what it is and we have to move on. If you are a real estate investor, or Realtor working with a client who is looking to buy a home for their family there are incredible bargains in every market in this country.
Here is the problem:
Most lender's Loss Mitigation departments are stupid. Their REO lists have exploded and they are adding more foreclosures every single day. The kids they have hired to "negotiate" short sales are overwhelmed, very poorly trained, and as hourly employees could really care less if the transaction closes or not.
If you are an investor, Realtor or God forbid, a home owner trying to move a transaction through this maze, I wish you luck. As a result, most people trying to negotiate a short sale fail miserably. Most of my investor clients report that they have invested hundreds of hours in getting these transactions to the table and they take months if they ever do close.
Here is the solution:
In addition to my mortgage practice, I have associated with a group of attorneys who practice exclusively in the loss mitigation area. The attorneys have proven their skills in negotiating short sales if that is in the client's interest. They have closed an incredible 86% of the short sales and 92% of the loan modification cases they have accepted in the last 6 months. I believe the reason they have been so successful is that they are reviewing both the closing documents and note for "actionable" errors and omissions and are escalating the negotiations from the lenders Loss Mitigation department to the Legal department. They also use a "prequalification" process to determine who they can help and what the cost of their services will be as every case is certainly different.
I have written a "white paper" on the loan modification and/or Short Sale process explaining what they are and how they can help you and your clients. If you would like a copy, either email me at bgammache@verizon.net or through AR and I will get it right out to you.
Bob Gammache CMPS
Comments(0)