Loss Mitigation Hurdle

big_nique · August 28, 2007, 3:01pm

If I am listed as buyer on the property I was told by a LM at CitiMortgage that they would have to speak with my seller because of the conflict of interest. Is this true for every mortgage company? What would be an alternative to overcoming this hurdle?

aksay · August 28, 2007, 5:56pm

Did your seller fill out a authorization to release form?

big_nique · August 28, 2007, 8:31pm

Yes. The LOA was with the short sale package.

Chateau_Commercial · August 29, 2007, 2:02pm

Lol, that’s a trick they use trying to get the homeowner on the phone. Them talking with the seller has jack sh*t to do with the sale of the property. You are negotiating a short sale for the note on the property and you have written permission from the homeowner to do so. As long as the bank has the LOA on file you have the right to speak with them pertaining to the account. Tell them you are the representative of the homeowners and you will pass messages on to them, but they make their own choices and they choose not to speak with anyone who may be attempting to collect a debt.

The LM agent is going to try to do everything they can to collect the debt that is owed. You are not the first person to call about a short sale for a property. The problem is that most people who try to do short sales are very green. All of their knowledge comes form over priced short sale books, seminars or from forums like this. The LM agents are used to this so they try to push you out of the picture and get the homeowner back in. They will try to make a payment plan with the homeowner once they get them on, then they will try to get a new, personally guaranteed contract for the remaining balance of the loan.

You have to have the bake bone to kill the LM with kindness while at the same time not allowing them to control you.

I always told my clients that once I made the first phone call to the bank to submit the LOA they were to have NO contact with anyone in regards to the property. If they did, and did not refer them to me, I would drop the case. A homeowner talking to a LM Rep or anyone in regards to the property you are attempting a short sale on will only make your job much harder and even kill the deal. I learned this the hard way.

Good Luck! :beer

big_nique · August 29, 2007, 3:33pm

Thanks for the post Chateau.

eric3 · August 29, 2007, 4:15pm

Chateau Commercial post:4:

Lol, that’s a trick they use trying to get the homeowner on the phone. Them talking with the seller has jack sh*t to do with the sale of the property. You are negotiating a short sale for the note on the property and you have written permission from the homeowner to do so. As long as the bank has the LOA on file you have the right to speak with them pertaining to the account. Tell them you are the representative of the homeowners and you will pass messages on to them, but they make their own choices and they choose not to speak with anyone who may be attempting to collect a debt.

The LM agent is going to try to do everything they can to collect the debt that is owed. You are not the first person to call about a short sale for a property. The problem is that most people who try to do short sales are very green. All of their knowledge comes form over priced short sale books, seminars or from forums like this. The LM agents are used to this so they try to push you out of the picture and get the homeowner back in. They will try to make a payment plan with the homeowner once they get them on, then they will try to get a new, personally guaranteed contract for the remaining balance of the loan.

You have to have the bake bone to kill the LM with kindness while at the same time not allowing them to control you.

I always told my clients that once I made the first phone call to the bank to submit the LOA they were to have NO contact with anyone in regards to the property. If they did, and did not refer them to me, I would drop the case. A homeowner talking to a LM Rep or anyone in regards to the property you are attempting a short sale on will only make your job much harder and even kill the deal. I learned this the hard way.

Good Luck! :beer

This is right on! Great post!