Part II: 11 Questions Sellers Should Ask If Considering Hiring a Loss Mitigation Company

If you are reading this post, I'd recommend that you read Part I of this series here.

OK, now that you are caught up on the purpose of this series, you are probably wondering if I have it "out" for Loss Mitigation companies.

To answer, no, I don't have it "out" for Loss Mitigation companies...or any other company for that matter. On the contrary, there are times when I think engaging the services of a Loss Mitigation company will benefit all parties involved.

However, I do strongly believe that when one is considering hiring a company or individual for a particular service (such as negotiating the loss a bank will take on the sale of a home), that there are questions that one should ask (and get the answers to, in writing)...especially when the success or failure of that company could have a life lasting effect on you and your credit.

Here are 11 Questions that may be helpful to Sellers who are considering hiring a Loss Mitigation company:

1. What is the scope of your service?
2. What do you charge for your services?
3. Are there any upfront fees that I (as the Seller), or my Real Estate agent will have to pay before my file is forwarded to the bank for approval?
4. Is their a flat fee or a percentage of sales price that is charged for the negotiation of my short sale with my lender? If so, what is that fee?
5. Who is responsible for paying your fee?
6. If your fee is customarily paid by my lender, what happens if they do not agree to pay the full amount?
7. If the bank agrees to your fee and the Buyer does not close, do you still get paid? By whom?
8. Do you have a real estate attorney on staff?
9. What is your success rate?
10. Does your company place a lien on my home if the bank does not agree to pay any portion of your fee, even if they agree to the short-sale?
11. Is there a written agreement I must sign in order for you to submit my case file to my lender? If so, may I have a copy?

While this list is not nearly as comprehensive as it could be, it is a good place to start. In times such as these, knowing what services are being provided and what those services will cost (and who will pay them) is critical.

As a full-time Real Estate agent in Central Florida, I caution Sellers to make sure that they know the answers to these questions (and others) before hiring a Loss Mitigation company...or the Real Estate agent who told them that they were in "partnership" with one.

In closing, short sales have been in the marketplace for years...and have been successfully negotiated by attorneys and Real Estate agents long before Loss Mitigation companies became a household name.

Stay tuned for Part III of this series which will address "What Buyers & Their Agents Need to Know When a Loss Mitigation Company is Involved"

For more information on selling your Seminole or Orange County, FL home as a short sale or buying a Seminole or Orange County, FL short sale home, call or text me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com

Advocating for Sellers and Buyers is my passion...

LaShawn Norden, PA, REALTOR, RE/MAX Central Realty, (321) 377-0157, LaShawn@LaShawnNorden.com, www.LaShawnNorden.com

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