Could Loss Mitigation Be The Career For You?
Foreclosures are currently at an all time high and with the trend looking set to continue it offers an opportunity to get involved at a business level in the real estate market. There are two aspects of the market that you can realistically get involved in. The first option is the Short Sale Market, where a borrower has a mortgage that is worth more than the value of their property and need to sell to cut their losses. This market is mainly for investors and is extremely difficult to enter into unless you have some previous experience in the real estate or mortgage business. The second more appealing business option is Loss Mitigation. This is aimed at helping homeowners save their homes from foreclosure while still being able to stay in the property.
So what exactly is Loss Mitigation? To put it in simple terms it's where an impartial third party negotiates with the lender on behalf of the homeowner to stop the foreclosure process. The Loss mitigation expert will bring together the two parties and arrange a viable repayment solution that is acceptable to both the homeowner and lender. This process is very successful because neither party wants to lose possibly thousands of dollars. The Loss Mitigation expert has no emotional involvement in the deal and works only on facts and figures and because of this they will achieve more than a homeowner. Another point to consider is the negotiator will know in detail all the programs offered by lenders and the criteria they work to.
When looking at Loss Mitigation as a business enterprise, there are some points to consider. Initially you should try and forge an association with your business and a reputable company that can provide this type of service for your clients. This type of company would be similar to an outsourcing company. Using a company that already has connections in the business and provides an effective service will be beneficial to yourself and your clients.
Firstly this company will have a good knowledge of the ever changing rules within the industry. Lenders are constantly changing their rules and the solutions they offer due to the increasing number of foreclosures. A company that already has a network of lenders in place and knows exactly what each one can offer will provide a better service to your clients than you can when your business is still in its initial stages. You should remember you are working with clients whose homes are at risk of foreclosure. It is prudent at this early stage of your business not to put yourself directly at risk. You don't yet have the knowledge and experience, so using an already established company is an ideal solution.
Credibility is also another reason for using an outsourcing company. Using a company that has been in the marketplace for a number of years and has a good reputation makes good business sense. Since the number of foreclosures increased dramatically a couple of years ago, many new companies sprung up to cash in on the surge in the market. You should carefully research the background of any company you intend to become involved with and choose one that's been around prior to the upturn in the market in 2005. This should give you and your client's piece of mind that you are dealing with a credible company.
You should also look for a company that has a history of getting the deals done in the best interest of the clients. Look for a company that has recorded testimonials from satisfied clients. It costs a lot more money to produce an audio testimonial than just a few written words on a website. While this is still no guarantee that the testimonials are indeed real, it does give more credibility to the testimonials as even false ones are very costly to produce.
The most important thing to consider is liability. It is important you research this aspect of prospective associate companies thoroughly. Most companies will ask you to set up trust or escrow accounts. Some may even ask that you set up an LLC. They ask you to do this because you will be collecting fees from clients. If you want to avoid liability you should choose a company that collects their fees directly from the client. You should also ensure they are getting clients to sign contracts stating they are the service provider. This means you would be working as an independent contractor for that company and any liability would be theirs if something did go wrong.
You should also take into consideration other things like the support infrastructure of the company, marketing, web presence, any training they provide and what tools they will provide you to get started. You will have to work very closely with this company so make sure you are happy that you will be able to forge a working relationship with them and that there are no clashes of personality. Companies will charge you a fee to get you started and these come in the region of between $1500 -$3000, which is quite reasonable if you've chosen the right company for you and your clients. If they charge a fee that is considerably more or less than this they are probably not legitimate.
So let's look again at the points you will want to cover if you're thinking of starting a Loss Mitigation Business. You should find a company that provides you with training and support provides an affordable and quality service to your clients and has a proven track record. Your chosen company should also collect all the fees and provide contracts and paperwork.
Loss Mitigation can be a rewarding business both in personal and monetary terms, but a good amount of research must be undertaken before deciding to set up such a venture, not only for your own benefit but also for the families you will be helping.
I have researched many of the companies that are out there offering Loss Mitigation services and the only one I have so far found that meets all the requirements outlined in this article is Freedom Foreclosure Prevention Services. You can learn more about this vibrant, expanding company at their corporate website.
So what exactly is Loss Mitigation? To put it in simple terms it's where an impartial third party negotiates with the lender on behalf of the homeowner to stop the foreclosure process. The Loss mitigation expert will bring together the two parties and arrange a viable repayment solution that is acceptable to both the homeowner and lender. This process is very successful because neither party wants to lose possibly thousands of dollars. The Loss Mitigation expert has no emotional involvement in the deal and works only on facts and figures and because of this they will achieve more than a homeowner. Another point to consider is the negotiator will know in detail all the programs offered by lenders and the criteria they work to.
When looking at Loss Mitigation as a business enterprise, there are some points to consider. Initially you should try and forge an association with your business and a reputable company that can provide this type of service for your clients. This type of company would be similar to an outsourcing company. Using a company that already has connections in the business and provides an effective service will be beneficial to yourself and your clients.
Firstly this company will have a good knowledge of the ever changing rules within the industry. Lenders are constantly changing their rules and the solutions they offer due to the increasing number of foreclosures. A company that already has a network of lenders in place and knows exactly what each one can offer will provide a better service to your clients than you can when your business is still in its initial stages. You should remember you are working with clients whose homes are at risk of foreclosure. It is prudent at this early stage of your business not to put yourself directly at risk. You don't yet have the knowledge and experience, so using an already established company is an ideal solution.
Credibility is also another reason for using an outsourcing company. Using a company that has been in the marketplace for a number of years and has a good reputation makes good business sense. Since the number of foreclosures increased dramatically a couple of years ago, many new companies sprung up to cash in on the surge in the market. You should carefully research the background of any company you intend to become involved with and choose one that's been around prior to the upturn in the market in 2005. This should give you and your client's piece of mind that you are dealing with a credible company.
You should also look for a company that has a history of getting the deals done in the best interest of the clients. Look for a company that has recorded testimonials from satisfied clients. It costs a lot more money to produce an audio testimonial than just a few written words on a website. While this is still no guarantee that the testimonials are indeed real, it does give more credibility to the testimonials as even false ones are very costly to produce.
The most important thing to consider is liability. It is important you research this aspect of prospective associate companies thoroughly. Most companies will ask you to set up trust or escrow accounts. Some may even ask that you set up an LLC. They ask you to do this because you will be collecting fees from clients. If you want to avoid liability you should choose a company that collects their fees directly from the client. You should also ensure they are getting clients to sign contracts stating they are the service provider. This means you would be working as an independent contractor for that company and any liability would be theirs if something did go wrong.
You should also take into consideration other things like the support infrastructure of the company, marketing, web presence, any training they provide and what tools they will provide you to get started. You will have to work very closely with this company so make sure you are happy that you will be able to forge a working relationship with them and that there are no clashes of personality. Companies will charge you a fee to get you started and these come in the region of between $1500 -$3000, which is quite reasonable if you've chosen the right company for you and your clients. If they charge a fee that is considerably more or less than this they are probably not legitimate.
So let's look again at the points you will want to cover if you're thinking of starting a Loss Mitigation Business. You should find a company that provides you with training and support provides an affordable and quality service to your clients and has a proven track record. Your chosen company should also collect all the fees and provide contracts and paperwork.
Loss Mitigation can be a rewarding business both in personal and monetary terms, but a good amount of research must be undertaken before deciding to set up such a venture, not only for your own benefit but also for the families you will be helping.
I have researched many of the companies that are out there offering Loss Mitigation services and the only one I have so far found that meets all the requirements outlined in this article is Freedom Foreclosure Prevention Services. You can learn more about this vibrant, expanding company at their corporate website.
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