I am told u need effective script to talk to Loss Mitigators. I need to know what to say when you are trying to get a short sale on a property.
Do you have a specific problem in mind that you need help with? Your comment is a tad too general.
I don’t use a script and have not come across anyone who has either. I think it is a matter of knowing your subject matter and then being able to ask the right questions or give the right answers. You will feel more comfortable with this over time.
My general approach with LMs is to be precise and to the point. Not a whole lot of talking is needed. Just get them what they ask for, be polite, and get the approval you need.
Post back if I can help further.
hi Turbo*
What are the acceptable hardships that a homeowner should have in order to be accepted by LM?
I totally agree with “turborocket”. The Loss Mitigators are just people trying to do their jobs and it does not require a script to talk to them. Many of the Real Estate Gurus, that charge you for their info, paint a picture that the Loss Mitigators are the big bad enemy. Not so… they are typically professionals that are swamped with default case. They are trained to be shrewd negotiaters with preconceived parameters.
Our job, as professional Short Sale Investors is to instantly prove to the Loss Mitigators that we are organized and knowledgable with the subject matter. Know what you want to say before you call them.
I believe that I lost my first two ss deals because of the uncertainty in my voice when dealing with the LM’s. On my third attempt, I was being stalled by the LM and I became professionaly agressive. It made all the difference in the world.
Keep in mind that the Lenders want you to take the problem properties from their books. A Loss Mitigator’s job is to resolve the issue in a timely manner. However, their top prority is to regain as much money as possible for the Investor that is holding the note and currently financing the Home Owner. They have their job to do and so do you.
Regarding your question about acceptable reasons to prove a hardship. I’m sure that all Lenders have different, but similar, parameters. It could be a job loss, divorce, extended illness, etc. When th LM’s look at the HO’s financial worksheet, it needs to make sense. If the HO is 3 months behind on their mortgage and the bills reflect a monthly payment on a new Mercedes and a Hummer, along with meals out every other day at fancy restaurants, I doubt that you could build a solid case for hardship!
hi LADreams
Have you dealt with a person who has 2 properties that they own go into short sale ? does it matter how many properties is going into short sale ? Do you know how bank evaluate this siutation ?
There are times that people have numerous properties that go into foreclosure at the same time. To the Lender, it doesn’t matter how many properties are being rescued, through a short sale, at the same time. What does matter , is what properties does the HO still own that are not in default. If there are income properties, not in default, this represents a source of income that affects the way that the HO is able to pay the mortgage for the defaulting loan(s). If the remaining properties are not in default, how is the HO able to pay the mortgage for those and not for the defaulting properties?
It definitely represents a more complex situation, however, the HO’s true financial status must be realized through the Financial Analyzation Form that reflects all income verses liabilities.
The success of the short sale is dependant upon a true hardship. If the HO has a situation that is causing them to default on most all of their bills then the Lender is going to put forth the effort to work out a reasonable solution. If the HO is defaulting on 2 homes and current with 2 vacation homes elsewhere, that represents a different story.
I hope this helps explain the situation to you.
Hardships come in all flavors. It could be medical, job loss, death in the family, just purely a string of bad luck, whatever. I try harder for homeowners who I actually believe have a hardship vs. people that are just using the system to get out of their responsibility - luckily, I don’t run into the latter very often.
My goal in corresponding with the loss mitigator (besides the obvious of getting the value that I want) is to be memorable in a positive way, by befriending them, being prepared, answering the phone when they call, making it ultra easy for them to deal with me. I also make it a point to be pleasant and nice to them, because you will likely need to talk to them 5 - 15 times for that one deal. It is not uncommon for a loss mitigator to ask me if I have any big plans for the upcoming weekend, because I’ve cultivated that relationship from the very first call. Loss mitigators usually have to deal with dead-beats or rude people who don’t call back, etc. So, I take the opposite approach and by doing so, I am memorable to them in a positive way. YMMV.
turborocket: We sound alike in our business approach. “Act like a professional to be treated like a professional”.
Peace!
-LA
You guys are smart…
Do you have a copy of a financial statement ? What should be on there ? is the owner requires to list out how much they spend per month, bank withdrawals and so on ?
thanks for your advice.
I just sent a copy of the Financial Analysis Form to your registered email address.
Can I get a copy of this form?
Thanks ahead of time.
Reasons why people lose their home
A loss of a job, medical expenses and other life-altering occurrences can happen to anyone, causing us to fall behind in our loan payments. If we neglect paying our credit cards it hurts our credit rating, but if we stop paying our home loan the situation is even worse, because the lender can foreclose, taking ownership the home. For most families, a home is not only a significant financial investment but also a source of pride. The loss of a home, due to unexpected events which leads to financial problems are most often associated with the following life changes:
. Death of a family member
. Illness,
. Loss of job
. Cuts in work hours or overtime
. Retirement
. Injury
.Divorce or separation
These are considered hardship.
Basic Contents of a Short Sale Package
The following is a basic outline of what you want to include in a successful short sale package:
• Cover Letter
• Authorization to Release Information
• Sellers Hardship Letter
• Sellers Financial information • Supporting Financial Information:
2 years w2s
2 months pay stubs
3 months bank statements
• Supporting Hardship info for example HOA liens, medical statements, disability statements
• Repair Estimate for the property ( Structural Bid) if you can develop a relationship with a contractor for this it adds credibility
• Comps for the property
• Contract
• Net Sheet -HUD 1
• Additional information that may be asked for:
o The first mortgage holder may ask for a payoff amount from the 2nd
o The second mortgage holder may ask for a payoff amount from the 1st
o Initial Title Report
corty73,
You can get a copy of the Financial Analysis Form from my website at: www.ga-invest.com/finance.pdf . However, keep in mind that some Lenders require that you use their approved form.
-LA