Loss Mitigation
I am a very new user on the TCI website and would like to ask you pros about a business opportunity using a web based Loss Mitigation company finding owners back on their mortgage. I would help the owner by working with the lenders, and find other creative ideas to solve the owner’s problem. I would only collect a fee if I solved their problem. The company web based Loss Mitigation company provides the four websites, training material, and support through daily telephone conference calls, business card, etc., for about $1000. I am very new to real estate investing and am trying to find away in, I am only 22 yrs old but, with good credit.
What I would like to know if anyone has come across this or has worked in loss mitigation?
Thank you,
Mike
I am very new too and think I came across the same website you did....Did you try it out? If so, was it worth it or have you pursued other ideas?
No, I haven't decided what Im going to do yet. They're are to many what "ifs". They only give you three days to look over the 400 page book and materials to decided if it was worth it. My biggest turn off is the network marketing. I checked the BBB, and called the company but, I would really like to talk to someone who knows about this program without trying to make a buck off of me. As of right now Im just reading just about every book that I can get my hand on. I will let you know if I decided. :-?
It is like any other marketing firm and it is a numbers game. It will take you more than your initial investment to start making any money.
It works BEST if you are already tied into the foreclosure world somehow locally.
You can make some good money at it if you work it hard and long enough, but most people run out of money before they get to that stage. And I wouldn't necessarily beleive the numbers they are spouting about 5 million home currently in foreclosure, but I can't confirm or deny that number either.
Their main source of income for their people is to sell it to others and get them involved.
Mike,
In California you have to watch out for the laws written to protect homeowners in foreclosure. Forclosure consultants have to abide by CC §2945. If you intend to also buy houses as an investor from people in foreclosure, then you must also be familiar with CC §1695.
The rub is that these two activities are mutually exclusive. If you perform any activities that define you as a consultant under §2945, then it is a conflict of interest if you later take possession of that property as an investor. This keeps homeowners from pinning all of their hopes on you as a consultant, only to have you intentionally fail in order to leave them no option but to sell when time runs short.
If you're going to be a consultant, then there are probably cheaper ways to get your education. There is literally a TON of stuff on the internet if you search for it. You should start with the stuff at HUD's website: http://www.hud.gov/ . In there, they have a link that will take you to a list of HUD-approved, non-profit debt counseling agencies. My best advice would be to find one of these agencies near you and visit them. Talk to the director (make an appointment first) to find out what's involved.
And don't worry about "missing the boat" with this loss mitigation training company. It will still be there after you've done a little research on your own. (But if it isn't still there, then you'll be really glad you waited)
As an investor, I think it pays to understand more than the average Joe about loss mitigation. Maybe the guy I'm dealing with just will not sell his house, so instead of giving him the total brushoff maybe I talk to him about some ways to structure a workout with his lender (loss mitigation)...if he finds himself in the same predicament some few months later on he's already got one person he can trust, and that's who he's gonna call for help.
Best of luck to you.