http://becomealossmitigationconsultant.com/ – Considering Loss Mitigation As A Realtor & Mortgage Broker Career Choice?
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.
This is referred to as Loss Mitigation. Loss Mitigation is a technique whereby a third party will work with a lender of the particular homeowner or client and negotiate a more affordable deal for the homeowner than what they could have hoped to accomplish on their own. There are a couple of reasons why this service works. First and foremost, a professional does not respond with emotion but rather facts and figures and will get much more accomplished than the average homeowner just on that premise alone. The other is the knowledge of all the different programs available by each and every lender and all of the lenders’ qualifying criteria.
Now there are a several things to consider when looking at Loss Mitigation as a business venture. You should align yourself or your business with a company that can provide this service for your clients. This company would resemble something similar to an outsourcing company. Loss Mitigation, though rewarding, is a very tedious service and also carries a heavy weight of liability and uncertainty. That being said, using a company that can responsibly and effectively provide the service to your clients can not only help you but most importantly 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.
The second reason for using an outsourcing type company is credibility. Now you should be very careful when investigating in a company that provides Loss Mitigation services and scrutinize their time in business. Any company that started after 2005 in this market only recently got involved due to the increasing number of foreclosures and therefore the prospect of money. A company that established themselves prior to the surge was in it for the homeowners and to truly help save American families from 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 fourth and most important reason is liability. Not all companies are structured the same so please be very careful when researching this side of the coin. Most will have you set up trust accounts or escrow accounts and some even have you set up an LLC. The reasoning for this is that you will be collecting client fees. If you are going to avoid liability than you would need to go with a company that collects fees directly from the client and the clients are signing contracts with that company as the service provider. You would simply be an independent contractor for that company and hence the liability ultimately falls on them as the service provider if something does go wrong.
There are still several things to consider like the support structure of the company, the personability of the staff, the web presence, training provided, marketing and ultimate tools they will give you to help get you going. Any company that is evenly remotely legitimate will charge between $1,500 and $3,500 to get you started. This is expected and is very reasonable if you are selecting the right company for you and your clients.
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 lucrative business but you should put a good amount of thought and research into your decision not only for your best interests but for those families you intend on 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.
This article was brought to you by William D. Cobb with Freedom Foreclosure Prevention Services. Visit these sites for more information: http://www.ffpswebinar.biz Also visit William’s Loss Mitigation Opportunity Blog @ http://lossmitigationcourse.net/ .