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Historically a Loss Mitigation Specialist works for the bank, typically in the Loss Mitigation Department . These were newly created only 20 or so years ago. They were designed to help nonpeforming assets become performing ones. This way the lender could make their porfolio of loans to a Senior Investor look good. A Loss Mitigation Specialist is commonly
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Good question. In most cases even Realtors that claim to know about them are NOT experienced in short sales. However you can certainly put together a questionnaire that will help you identify those that are experienced. Ask the following questions to an agent: Do you understand a short sale? When is the last time you completed a short sale? Where did
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No. It is based on the total amount of money the lender needs to recoup their loss from the borrower. Actually it isn't the total amount as much as it is the agreed or calculated amount the lender decides is sufficient to sell the property at the sheriff/ foreclosure auction . Often you will see the lender buy-back the property. This is due to their
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There isn't an exact time frame to get an approval for a short sale granted. However most lenders tend to promote it will take a minimum of 21 days AFTER they receive a complete short sale package to review it for approval. It isn't uncommon for lenders to be backed up or way behind in dealing with borrowers either in foreclosure or late on their payments
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A BPO stands for a " broker price opinion ". You can think of it similar to a drive-by type appraisal. BPO's can be interior or exterior type. Most of them are performed by Realtor's that are hired by third party companies such as Land Safe or First American to perform the BPO. You have to specifically request INTERIOR or EXTERIOR type BPO's. The exterior
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The effects of foreclosure on your credit can be very negative. It will usually stay on your credit for at least 7-10 years. You can ask the lender for creative alternatives to foreclosure and they will see if you qualify for any of their programs. If your house has some equity and you have to sell it you can ask the lender about a " deed in lieu "
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Yes. You can still get a lender to agree to a short sale offer if the homeowner is still within their confirmation or buyback period. You can research your state to find out if you have a certain number of days or weeks where the homeowner can come back and purchase the house from the lender after the foreclosure. Hence the lender would not get a new
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Yes they can move forward with the foreclosure . The short sale option is a liquidation option the lender offers based on guidelines. The reason the lender has not got back in touch with you in a timely manner is because they are swamped with files. It isn't uncommon for a lender's Loss Mitigation or Short Sale Department to have a distribution of over
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Perhaps. The best answer to this would be for to consult a CPA to determine how insolvent the homeowner was at the time of the foreclosure or sheriff sale. The IRS Form 932 is specific to addressing any claimed income owed in result on deficiencies. The lenders will choose to either write off the loan and 1099 the homeowner or they will file for the
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It should be the amount you are offering to the lender as their NET. The lender is well aware of the full loan payoff. They want to see the amount you are going to pay them as their NET. The lender will determine if your offer is in line with their documented value on the property. If you offer something too low they may decide to decline your short