Getting the Short End of a Short Sale

Just came across this trend report when looking into some short sale trends.  What caught my eye was the term “Loss Mitigation Specialist”.  I’ve seen this “specialist” in many forms; just recently this specialist actually represented himself as “sort of an attorney” to a client of mine who was about to go through foreclosure.  This specialist literally drafted a long, but very messy complaint against the lender, on behalf of my new client, and actually filed it with the court.  My client was about to mail-serve it when he came to me.  This complaint against the lender was extremely sloppy but also very detailed as to the many theories of recovery against lenders.  Needless to say, the foreclosure had already occured and all the “specialist” was doing was attempting to make some extra money at the expense of families suffering through financial hardship.

We all know that there are certain valid defenses against lenders.  Many of them, if true and if properly presented, can and will actually stop a foreclosure.  The difference between the presentation of a good defense to a court and the hurling of a sloppy argument-making a sure you hire a real estate attorney that is actually licensed and actually knows what she or he is doing, or hire a licensed Realtor that understands foreclosures.  If the person calls himself or herself a Loss Mitigation Specialist, I would be very concerned.  Not a good trend.

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