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Short Sale Tip of The Week 7-29-09
Posted on 30. Jul, 2009 by ctlms in Short Sale, foreclosure
Loan Modifications...So what's the deal?
We have heard a lot about loan modifications in the news this year. The government has come out with a litany of new programs aimed at helping struggling homeowners to avoid foreclosure.
However the numbers so far do not show a stem to the foreclosure crisis. In the first half of this year there have been more than 1.9 Million foreclosure fillings nationwide.
Part of the reason these programs are not working as desired is that they were developed by Congress not mortgage professionals. The programs are Pass or Fail type programs. The mortgage servicer enters in some data about the homeowner and the system says yes or no. That's it, there is no manual underwriting averrable for these programs. If the income is too high or to low, you fail. If you debts are too high or too low, you fail.
The other reason for the lack of results is that only Fannie Mae and Freddie Mac are the only investors that the Government can dictate these guidelines to. Additionally any banks that took TARP money have to participate. But this has obviously not been enough so far.
The good news is that there is the "Old School" way of doing loan mods that complete bypasses these programs and has had a much higher likelihood of success for many years. Loan mods are nothing new, they are just more publicized now then they ever were before.
As a real estate professional you are likely one of the first people on of your past clients will call when they are in trouble with their house. As much as making a commission is important, helping the client should be first priority. If they want to, and can afford to save their home, we all should do whatever we can to help them. You could never have a better referral source than a homeowner you helped stay in their home when they were struggling.
My company can offer this service to your clients well as as the short sale processing services we provide. We have aligned ourselves with the nations top loan modification service. We can let your client know within 24-48 hours if they fit the qualifications for a loan mod. If they do not, then you probably have a new short sale listing on your hands and we can help there to.
Either way you have looked after the best interests of your clients, and they will thank you for it.
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As always Visit the Ask The Expert Page to leave your questions or contact me directly if you need immediate assistance at [email protected] or visit www.CTLMS.com
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Bio
Sean Wilder started in the pre-foreclosure business in 2007. Previously he enjoyed successbusiness in the transportation industry, real estate investing and as a licensed Realtor. Sean brought the same determination and work ethic that lead to great success in his previous businesses to Loss Mit Services based in East Windsor, CT. His focus, combined with his drive to succeed, have been essential to his success as one of the area's top short sale negotiators.
Known for finding creative ways to overcome hurdles and never ending persistence; Sean, believes in the power of team. Sean and his team are in the trenches everyday, plowing through challenges and objections while negotiating with various lenders, and finding solutions to difficult problems. It is this daily experience that brings Loss Mit Services consistent success and provides them the knowledge to share.
Sean belongs to a number of industry groups and associations that allow him to collaborate, share, learn, teach and stay updated on the latest changes in the pre-foreclosure industry at the federal, state, local and lender specific levels.
Effective Oct 1, 2009 all debt negotiation companies that offer loan modification, short sale, or foreclosure rescue services needed to be licensed by the CT Dept of Banking. Sean and his company Loss Mit Services were the 1st to be awarded the Debt Negotiation License NMLS # 828273 which can be verified at the CT Dept of Banking Website by Clicking Here. In addition, effective Oct 1, 2011 Debt Negotiators were required to also be licensed Mortgage Loan originators and Sean also has received this license, NMLS# LO-831853.
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