Could Loss Mitigation Be The Career For You?
William D. Cobb
When considering the opportunities that have presented themselves in the past couple of years with the real estate market, foreclosures seem to be the hot topic. Even with all the foreclosures on the market today there are really only two areas in which one can really get involved at a business level. There are those that need to save their homes from foreclosure and stay. Then there are those that know they have gotten in way over their heads and are trying to get out from underneath a mortgage that is worth more than their home. The latter of the two is primarily for investors and is a very difficult market to tap into without prior real estate or mortgage experience. This is referred to as the Short Sale market. However, one very appealing venture is helping a homeowner save their home.
Loss Mitigation is a process where a third party will work with the homeowner and lender and negotiate a more affordable deal than the homeowner would be able to attain on their own. There are a couple of reasons why this service works so well. Firstly the negotiator works only on a professional basis and doesn't let emotion cloud his judgment. He can concentrate wholly on the facts and figures and on that basis alone can achieve a better deal than the average homeowner would. The other reason is the knowledge and information they can provide of all the lenders various programs and rules which a normal homeowner just wouldn't have.
There are some things worth considering if you are thinking about starting a Loss Mitigation as a business. You should form an affiliation with a company that can provide this type of service for your clients. In effect you'd be looking for something similar to an outsourcing company. Although Loss Mitigation is very rewarding it also carries a high burden of uncertainty as well as liability. By using an already established company that can provide a reliable, responsible level of service will be beneficial to you and your clients.
The first reason behind this is the knowledge in this ever changing industry that the company you select should possess. Right now lenders are changing their rules on a regular basis with the increasing foreclosures and the increasing programs and solutions available. A company that has this knowledge and these connections already in place will serve your clients much better than you could at the infancy stage of this business. Remember that you are working with clients that are facing foreclosure and their home is at stake. This is not a risk you want to put yourself on the front lines of without the full knowledge and experience.
Another reason for using an outsourcing company is their credibility in the marketplace. When searching for a company that offers Loss Mitigation services there are some things you should consider. Since 2005 there has been a dramatic increase in foreclosures and many companies were formed who saw this as a way to make a quick profit. You should therefore look for companies who have been established for a few years prior to 2005. These companies haven't jumped on the bandwagon and were formed only to help and look after the interests of the families and homeowners who face foreclosure.
The third reason would boil down to the company's ability to actually get a deal done and their proven track record. Check to see if that company has actual recorded testimonials from clients. Though it can be fabricated, recorded testimonials are much more costly to falsely produce than say a few typed words. If their client testimonials are audio recordings than the probability that these are actual clients that are happy about the service are MUCH higher.
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 to recap what we have covered when looking into the Loss Mitigation field you will want to find a company that can provide training, support and services for your clients. You want to find a company that is affordable to your clients and can provide quality services. The company you select should have a proven track record and handle the collection of fees and service providing including the contracting and paperwork. Remember all of these very important tips as each one can be crucial in the process of business and helping families.
This can be a very profitable business, but you should research the options available to you thoroughly before making any decisions. Doing so will be in your best interest and will also benefit the families you are helping.
The only company I have found that fulfills all of the requirements above is Freedom Foreclosure Prevention Services. Learn more about this dynamic, growing company at their corporate website.
Get more of Bill's Loss Mitigation Course information at
http://www.lossmitigationcourse.net/ Loss Mitigation Course Training Click here to get your own
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