Could Loss Mitigation Be The Career For You?

In the past couple of years foreclosures have become a hot issue within the real estate market and are definitely a business opportunity worth considering. Even with the growing numbers of foreclosures on the market today, there are really only two areas where a business opportunity exists. One is helping people who find themselves in severe financial difficulty due to their mortgage being worth more than the actual value of their home. This type of market is called the "Short Sale Market" and is hard to break into especially if you lack previous mortgage or real estate experience. The other is helping people who need to save their homes from foreclosure and stay. This is called Loss Mitigation and is an ideal entry business level opportunity.

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.

There are some things worth considering if you are thinking about starting a Loss Mitigation as a business. You should form an affiliation with a company that can provide this type of service for your clients. In effect you'd be looking for something similar to an outsourcing company. Although Loss Mitigation is very rewarding it also carries a high burden of uncertainty as well as liability. By using an already established company that can provide a reliable, responsible level of service will be beneficial to you and your clients.

It will be beneficial firstly, because an established company will already have a network of connections to lenders in place. It will also have knowledge of the ever changing rules and programs each individual lender has to offer. In a fast changing marketplace this information is invaluable to you and your clients, especially when your business is still in its infancy. Remember you are working with clients who are facing foreclosure and are at risk of losing their homes. You would be taking on a huge responsibility if you did not have any prior knowledge or experience, so forming an association with an outsourcing company makes sense.

Credibility is also another reason for using an outsourcing company. Using a company that has been in the marketplace for a number of years and has a good reputation makes good business sense. Since the number of foreclosures increased dramatically a couple of years ago, many new companies sprung up to cash in on the surge in the market. You should carefully research the background of any company you intend to become involved with and choose one that's been around prior to the upturn in the market in 2005. This should give you and your client's piece of mind that you are dealing with a credible company.

The third point to look for in a company is a proven track record in brokering deals and reaching successful solutions in warding off foreclosures. Look for a company that can provide recorded testimonials from satisfied clients. Although it's possible some testimonials may be false, it's far more costly to produce an audio testimonial than a written one and the likelihood of the clients statements being true are much higher.

The most important thing to consider is liability. It is important you research this aspect of prospective associate companies thoroughly. Most companies will ask you to set up trust or escrow accounts. Some may even ask that you set up an LLC. They ask you to do this because you will be collecting fees from clients. If you want to avoid liability you should choose a company that collects their fees directly from the client. You should also ensure they are getting clients to sign contracts stating they are the service provider. This means you would be working as an independent contractor for that company and any liability would be theirs if something did 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.

A company that I have found that meets all the above criteria is Freedom Foreclosure Prevention Services. You can find out more details about this fast growing, go-ahead company at their corporate website.

Article Source: http://www.philvault.com

Amazingly William D. Cobb actually knows what he is talking about. You can see more here: Loss Mitigation Without Performing The Nightmare of Lender Mediation

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