I would like to know the common sense behind why a person facing foreclosure would pay a foreclosure company to handle the loss mitigation process instead of handling it themself.
From what I am hearing, home owners are not having much success trying to do their own loss mitigation as would a third party foreclosure specialist.
Thanks in advance for your answers
Lana
Because they are emotionally involved in the process.
No-one wants to lose their house, as soon as the letters and phone calls start from the mortgage company, they lose all objective opinion. Letters don’t get opened, phone calls don’t get answered.
They also live in the vain hope that some miracle will happen, rich Aunt Edna drops dead, they win the lottery, the mortgage company tells them it was all a mistake.
So nothing gets done until they either bite the bullet and ask for help, or they get the eviction notice from the sheriff.
Because most people don’t understand how to talk to mortgage companies, or they are intimidated, or they don’t even understand what to do or how to do it…the list goes on and on.
They are called a loss mitigation specialists/companies.
You pay them for the same reason you pay an attorney to represent you in court instead of doing it yourself basically. I would not take a $50 course on how to represent myself in court like I would not take a course in loss mititgation a week before the foreclosure.
Some homeowners are successful though if that aren’t too far behind. The loss mitigation specialist may save you money . They know the characteristics of each lender and the lenders want to avoild foreclosure at al;l costs and are very receptive to reputable loss mitigation companies they have delat successfully with, like judges and lawyers know each other and make deals.