Short Sale Mitigation, Consumers Should Be Warned! (Mitigation Firms)

Distressed property owners suffer the confusion of solution along with the stresses of their financial hardships. Once a default filing reaches the public 411, every joker and legitimate provider of pre-foreclosure services gets the memo. Mortgage Brokers, Realtors, Mitigation Attorneys, Investors and Short Sale Scam Artists prey on the chance for their piece of the buck.

One solution offered to distressed homeowners is the use of Mitigation Services provided by firms qualified in their State to provide these services. For example in California, they are most likely Legal Firms. The Legal approach to negotiating with lenders adds the sledgehammer in cases for example, when it is discovered that when the mortgage was originated, the consumer disclosures were not properly executed. Law Firms are poised with the perceived authority they personify to the public, though it has been debated by many lenders as to their effectiveness over other solutions offered by Brokerages staffed with Short Sale Specialists. Re-finance is commonly impossible.

Mitigation Firms have proved to be an exceptional way for many distressed homeowners to save themselves by saving their homes. If that is your situation, I would not call a real estate firm until after the modification process proved a disqualification. The banks are not going to throw you under the bus if your mortgage is tied to HEMP or HAFA guidelines. HEMP and HAFA are government mandates President Obama rushed through to squash the red tape in the pre-foreclosure process and to help restore pride of homeownership to millions of Americans. HEMP relates to Modification and HAFA tags on HEMP with Short Sale guidelines and protocol. While the programs have honorable intent, there are many mortgages in default which are exempt from these governmental compliances. This is one example where Mitigation Firms provide an equitable and valued Consumer Service.

Here is the Warning! Many Mitigation Firms make their money on Advance Fees, often disclosed as Fees for Service. When you examine the services and fees due in phases, the bulk of the fee is more like a nonrefundable retainer in exchange for the same roundup of the homeowner’s documents and Short Sale packaging as would be included in the Brokerage Commissions paid in the sale of the property. There is a New School of Real Estate Short Sale Specialists out their trained in these pre-foreclosure lender regiments and can supplement the Short Sale Banks bottom-line more equitably. The advice here would be that before signing any Agreement for Mitigation Services, it would be wise to forward the agreement to a second Mitigation Expert, Attorney or Specialist for a Consultation.

Copyright © Bryan Ridgley



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