It is important to establish this fact to be successful in the real estate foreclosure investing: there is no war between investors and Loss Mitigators! The bank is aware that investors are a quick fix to a delinquent file and rely on us to ultimately help solve the problem.
Here are top most investors believe and suffer greatly from and tips on how to resolve them.
Myth 1
Bank mitigators are impossible to get in touch with. It's our responsibility to establish how to clearly communicate with them, by fax, phone or email. Don't call them if they prefer email - they will start to notice you are a detriment to their productivity and begin avoiding you like a plague. A Loss Mitigator must have a person on the other line who knows how to fulfill requests without being an annoying pest, giving them what they need when they need it, in as few contacts as humanly possible. The first conversation must build credibility, establishing resistance and most of all building a connection. That means being clear, direct, and persuasive. But most of all you need to identify the type of personality of the person you are dealing with. Learn how to identify the types of personalities and effectively deal with them.
To combat and resolve the challenge of mitigators who are difficult to get in touch with, first establish deadlines on everything. Establish an exact time that you will call them to discuss the file each week. Remember this, on Friday they are relaxed because their brains are mush from the tough week. And lastly, have a detailed agenda of topics to discuss and email this to them day of with a reminder. Be easy to work with, not overbearing or condescending.
Myth 2
Mitigators give an unreasonable counter to your offer. Although liquidation decisions are based on several surrounding factors such as debtor's hardship, condition, and marketability, even the Mitigators bonus structure effects their decisions! All of their liquidation decisions rest on the one obstacle that you must get right or you lose! The Brokers Price Opinion (BPO) truly controls the deal. Once the value is established by a third party appraiser or realtor, liquidation decisions are made based on the mitigators delegated authority depending on the loan product.
If you get an unreasonable counter such as the value being too high. What you can do is tear down the BPO itself or the agent who did the BPO. And for Faulty Mitigation Process, you can escalate the file to management explaining that you are dealing with a challenging personality or an inexperienced loss mitigator. (If you both agree on the value yet the counter is higher than the delegated authority for example.)
Myth 3
Mitigators are generally difficult to negotiate with. Short sales have little to do with actual negotiations, if you find yourself in an offensive or defensive position it means someone is being made wrong. A short sale expert is a master at building a valid case and strong supporting documentation, not going head to head with a loss mitigator. Supporting documentation is: your own BPO, demolition report, environmental issue report, and repair estimates.
There are also several things you will NOT ever be doing on your first call to a Loss Mitigation specialist: Never: Make a verbal offer on the first call because the offer is based on a value you must help substantiate when you meet the person doing the BPO. You might discuss some preliminary figures to test resistance which will in turn draw out information and the Mitigators opinion about the value of the property, market conditions, and the debtor's hardship.
One of recommended strategies is to immediately offer the mitigation a written contract, net sheet and closing documentation at a perceivably low ball offer of approximately 60% of what the house might sell for in 60 days, this will in fact establish or prompt the mitigator to "open" the file. It will take you time to meet the BPO agent, collect supporting value information and begin marketing the property for an end buyer or investor. Besides it's more appealing to loss mitigation when you come back 30, 60 or 90 days later with a higher offer, as opposed to coming in with an offer that you absolutely must have to make the deal work because you didn't work to find out what the market would bear. - 15790
Here are top most investors believe and suffer greatly from and tips on how to resolve them.
Myth 1
Bank mitigators are impossible to get in touch with. It's our responsibility to establish how to clearly communicate with them, by fax, phone or email. Don't call them if they prefer email - they will start to notice you are a detriment to their productivity and begin avoiding you like a plague. A Loss Mitigator must have a person on the other line who knows how to fulfill requests without being an annoying pest, giving them what they need when they need it, in as few contacts as humanly possible. The first conversation must build credibility, establishing resistance and most of all building a connection. That means being clear, direct, and persuasive. But most of all you need to identify the type of personality of the person you are dealing with. Learn how to identify the types of personalities and effectively deal with them.
To combat and resolve the challenge of mitigators who are difficult to get in touch with, first establish deadlines on everything. Establish an exact time that you will call them to discuss the file each week. Remember this, on Friday they are relaxed because their brains are mush from the tough week. And lastly, have a detailed agenda of topics to discuss and email this to them day of with a reminder. Be easy to work with, not overbearing or condescending.
Myth 2
Mitigators give an unreasonable counter to your offer. Although liquidation decisions are based on several surrounding factors such as debtor's hardship, condition, and marketability, even the Mitigators bonus structure effects their decisions! All of their liquidation decisions rest on the one obstacle that you must get right or you lose! The Brokers Price Opinion (BPO) truly controls the deal. Once the value is established by a third party appraiser or realtor, liquidation decisions are made based on the mitigators delegated authority depending on the loan product.
If you get an unreasonable counter such as the value being too high. What you can do is tear down the BPO itself or the agent who did the BPO. And for Faulty Mitigation Process, you can escalate the file to management explaining that you are dealing with a challenging personality or an inexperienced loss mitigator. (If you both agree on the value yet the counter is higher than the delegated authority for example.)
Myth 3
Mitigators are generally difficult to negotiate with. Short sales have little to do with actual negotiations, if you find yourself in an offensive or defensive position it means someone is being made wrong. A short sale expert is a master at building a valid case and strong supporting documentation, not going head to head with a loss mitigator. Supporting documentation is: your own BPO, demolition report, environmental issue report, and repair estimates.
There are also several things you will NOT ever be doing on your first call to a Loss Mitigation specialist: Never: Make a verbal offer on the first call because the offer is based on a value you must help substantiate when you meet the person doing the BPO. You might discuss some preliminary figures to test resistance which will in turn draw out information and the Mitigators opinion about the value of the property, market conditions, and the debtor's hardship.
One of recommended strategies is to immediately offer the mitigation a written contract, net sheet and closing documentation at a perceivably low ball offer of approximately 60% of what the house might sell for in 60 days, this will in fact establish or prompt the mitigator to "open" the file. It will take you time to meet the BPO agent, collect supporting value information and begin marketing the property for an end buyer or investor. Besides it's more appealing to loss mitigation when you come back 30, 60 or 90 days later with a higher offer, as opposed to coming in with an offer that you absolutely must have to make the deal work because you didn't work to find out what the market would bear. - 15790
About the Author:
An expert in foreclosure, Jeff Kaller has over 10,000 dedicated students who have made money in real estate. To learn how you can make money in a declining economy, in as little as 9 days, visit Jeff Kaller's site and become his protege!