Short Sales and Loss Mitigation

It is no secret the number of foreclosures is on the upswing. In fact, the experts in the field estimate this year (2008) will set a record with 2009 seeing a mild tapering off in foreclosure filings.

This does not bode well for the economy in general and those homeowners in particular. However, it is a gold mine for those of us in what has become to be called the foreclosure industry.

We are actually being called an industry just like the auto, electronics and computer companies. That is probably due to the large number of homes and the associated dollar amount.

Regardless of why we are now an industry the fact remains before we can perform a short sale we must know which department of the lender’s company we should contact. The most common is the loss mitigation department.

It is so common that everyone in the industry simply uses it whether or not it is accurate for the specific lender with whom they are dealing. This department is also known by foreclosures department, short sale department and loan modification department.

What this means is quite simple. When you call the lender’s customer service number and the voice says they don’t have a loss mitigation department ask for one of the above departments.

If the voice still maintains they don’t have one of “those”, ask what department handles their foreclosures. The voice should then transfer you to the specific department in that company.

All mortgage lenders have loss mitigation departments, no matter what they are called. They have to have the ability to perform forbearance or mitigation on individual loans. Otherwise they would only have foreclosures and a lender with a portfolio full of foreclosures is soon to be spoken of in the past tense.

As a last resort, should the voice insist they don’t have any department that handles foreclosures, ask for their legal department. Someone in that office will direct you to the correct department. Only ask for the legal department as a last resort but know you can be put in touch with them should the need arise.

Tom Koziol is a Foreclosure Consultant, Investor and author of the much heralded guide - Home Foreclosure Profits. Find Out More at: Home Foreclosure Profits