Preforeclosure Knowledge Box

What are some ways to successfully negotiate a short sale? One positive impact approach is to be organized during the negotiating process. Loss mitigation departments appreciate it when the agent has a high level of knowledge and is organized. The following is a 10 point process that gives a high level overview of how everything works and when it should occur during the process. Remember, the specific lender always dictates the process.

1. Gather all paperwork from homeowner to show the bank that there is a hardship (this is the paperwork discussed in the presentation).

2. Fax "Third Party Authorization" form to loss mitigation department. Use the contact information that is provided by Emerald Seas Title, LLC.

3. Call the next day to verify the authorization is in their system.

4. Once authorization is in system, call loss mitigation to request any additional hardship packages that may need to be sent along with homeowner's paperwork.

5. Once everything is filled out (lender and homeowner's paperwork), fax or overnight it to loss mitigation department.

6. Wait 3 to 5 days call loss mitigation to make sure they got the paperwork.

7. Lender will hire a real estate agent as a BPO to give the bank an appropriate market price.

8. Meet BPO appraiser at the property to get the price that you need to sell the house.

9. Once assigned to negotiator in the loss mitigation department, then work with them to get the price you need to sell the property and get the time you need to sell it.

10. If the bank accepts your offer, move forward with selling the house (usually within 30 days). If the bank rejects the offer, go back and renegotiate with the bank.

Are you concerned about missing payments on your mortgage in the future or are you in a state where you have missed payments? You are not alone. There are many reasons why individuals struggle to make payments such as death, disease, and divorce. But there are other reasons such as adjustable rate mortgages and stated income issues. Below are some ideas that may help.

1. When you first realize that you are going to miss a mortgage payment, contact your lender immediately. They want to help.

2. Is your situation permanent or temporary? If it is temporary, many lenders will provide a "workout" option for your loan. These include loan modification, forebearance, and payment plans. If you situation is permanent, then you may need to sell your house to avoid foreclosure. In this case, get in touch with a realtor and see what they can do to help you get the house sold. If you don't know one, contact us through this website and we can refer you to an agent through our network of contacts.

3. Contact a HUD approved preforeclosure counselor. These are typically faith based, not for profit organizations that can help guide you through this stressful time. Check out these agents in the Orlando area.
CCCS of Central Florida
HANDS
Mid Florida Housing Partnership

4. Be extremely careful of credit repair agencies. The Federal Trade Commission has a website that gives you the signs of shady agencies. In fact, if you have an issue with your credit, you can dispute it on your own. The website gives this information as well. We recommend a company in Orlando that will help organize your dispute letters for you (if your concerned about what to do or don't have time) for a minimal fee. The website is Dan's Network X

5. Please check out the rest of this page. There are links to daily articles, local media links, and videos that may lead you in the right direction.

Emerald Seas Title, LLC wants to help you become a preforeclosure expert and give you the competitive advantage you need to be successful in this niche market. We are currently conducting our "Become a Preforeclosure Expert" workshop to provide critical information to agents that allow them to aggressively seek these listings.

Most preforeclosure workshops cover all the basics and provide marketing tools for a price at the end of the session. While our workshop covers the basics, we do so in an hour session then give you free marketing tools to help you succeed in the market.

1. Participants will receive a contact list for 35 of America's largest lenders including mailing addresses, direct phone numbers, and contact names.

2. Per request, participants can receive actual loss mitigation packages for specific lenders where available.

3. Participants will receive a "Distressed Borrower Marketing Kit." The kit includes:

a. Third Party Authorization Form- Form that allows you to represent the borrower.
b. Two Sample Hardship Letters and Sample Hardship Form
c. Preforeclosure Checklist- Checklist used to keep your loss mitigation packages organized.
d. Preforeclosure Contact Form- Form that maintains all party names and phone numbers
e. Lender Call Log- A call log used to keep a running total of all correspondence you have had with the lender's loss mitigation department.
f. Preforeclosure Counselors- A listing of all HUD approved counselors in the Orlando area. An excellent tool to pass along to your distressed client.
g. FAQs for Distressed Borrowers- A marketing piece to give to your client that will answer their questions with regards to foreclosure and preforeclosure.
h. Sample Credit Dispute Letter- If your borrower wants to dispute their credit score, this letter can be sent to the credit bureaus.

We recently created a blog called the Preforeclosure Help Desk. While this is brand new, please check it out on a regular basis to see whats new. An RSS Feed has been set up where the updates can be emailed to you or tied into your website if you are a real estate agent.

Emerald Seas Title, LLC is an attorney owned and operated title insurance agency that offers both residential and commercial title services. Based in downtown Orlando and offering over 20 years combined experience in the title insurance industry, we are dedicated to offering superior customer service from beginning to end of your transaction. We recognize that the title business is primarily service oriented and we provide the following services to meet your needs:

-Attorney services available
-24-48 hour turnaround on title searches and commitments with same day turnaround by special request
-Bilingual closings (Spanish and Vietnamese)
-Closings anytime, anywhere in Florida
-Processor dedicated to your file from title order to the closing table
Our goal is to deliver fast and professional customer service which will allow you to focus on other things.