Archive for the ‘Loss Mitigation’ Category

Loss Mitigation Duties

Although in the past investors would push servicers to foreclose on those who couldn't make their payments on their mortgages, today investors are all about loss mitigation. Foreclosure, it turns out, is a costly hassle, leading to thousands and thousands of dollars of loss. Extrapolating these losses over entire portfolios, or even over the entire country, they add up to billions of wasted dollars.

Obviously, investors and government agencies don't like that, and they have begun convincing/enticing/forcing the servicing community to help discover new methods of loss mitigation, create special departments for their execution, and generally to pursue less wasteful alternatives to foreclosure. These new plans include tactics such as delicate loan modification negotiations, forbearance plans, deed-in-lieu of foreclosure, and real estate short sales. Now, every single operation features such programs, it is assumed. And even better, it works.

The huge losses of sudden foreclosures and defaults are largely a thing of the past, replaced by the smaller losses of loan mods, short sales, and other mitigating actions.

Sadly, this improvement is not without its drawbacks. Loan servicers, especially the ones in residential situations, have become bogged down in layers of litigation that come with loss mitigation, because trying to reach a workout of loss mitigation while simultaneously, and often secretly, pursuing the channels of foreclosure created a lot of angry people claiming that they were engaging in deceptive practices.

There is a court case that set a strong precedence in these matters. Richter v. Bank of America (1991) led to a court awarding Richter about three million in damages against a lender who had 'breached it's duty' to deal in good faith towards the goal of restructuring a loan, and had engaged in negligent misrepresentation by going for foreclosure while 'taunting' the borrower with promises of a loan modification. It was a landmark case, demonstrating the power of expectations for genuine loss mitigation efforts over the old foreclosure practices or unscrupulous fraud. It also made servicers nervous and hesitant to engage in loss mitigation efforts if foreclosure might be legally simpler.

However, most lenders have come to the conclusion that the risk to their interest is worth the prevention of major loss during foreclosure or short sale. And there are some pretty simple and effective steps lenders can take to protect themselves from potential risk.

The most self-explanatory, but often hardest to execute plan is to simply "be a straight shooter". Lenders who suggest that they plan to pursue loss mitigation avenues instead of foreclosure need to admit that, actually, they will be proceeding with foreclosure procedures until a document executed by both parties is produced that sets out specific, agreed-upon loss mitigation alternatives. They need to straight out document the fact that they are in danger of foreclosure, and that they should not definitely rely on loss mitigation results, and be aware that they are in very real danger of losing their homes. Lenders cannot be in the business of giving out false hope, because it can lead to more loss, and sometimes lawsuits.

About the Author:

For more information on a loss mitigation specialist and foreclosure prevention, visit http://www.accesslossmitigation.com

Source - California Loss Mitigation and Foreclosure Realities

Bendix Wingman ACB

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Loss Mitigation Fraud

Each year hundreds of thousands of organizations in the United States experience the negative effects of workplace crimes firsthand. These detrimental and costly experiences lead to considerable losses in productivity, assets, workplace/employee morale, and tragically, even life. They also usually require resorting to the hiring of security consulting firms or security companies. Crimes known to occur in work-type settings include: theft, vandalism, assault, kidnapping, arson, rape and murder, among many others. Mitigating your exposure and risk to these security threats begins with identifying vulnerabilities in your organization that would be conducive to these crimes. One of the first steps that are taken by security guard companies in this process involves conducting an effective security assessment, to expose onsite weaknesses that can create the kind of conditions necessary for the perpetration of these crimes.

Different types of organizations have different types of security needs. For instance, the usual security concerns of an industrial plant facility manager may be different from those of the owner of a car dealership. Where the car dealer may be mostly concerned with keeping his/her assets safe when the dealership is closed, the industrial plant facility manager may be focused on securing the onsite and logistical safety of all manufactured goods or substances, as well as keeping employees and local residents safe. In fact, while many organizations view security as a simple service involving the protection of people and assets, there are a myriad of security deployments that can be implemented to address a wide variety of security challenges. In consideration of these varying deployments, a security company has various factors to consider, including:

Crime Risk:
Is there a high crime rate in the area?

Types of Assets:
Are there on-site assets to be protected? If so, are they portable, or difficult to transport?

Traffic:
Does the establishment receive pedestrian traffic?

Types of Substances:
Are there on-site substances or raw goods/materials to be protected? If so, are they consumable or hazardous?

Time:
Is the establishment open 24 hours a day, or only during business hours?

Accessibility:
Is your establishment located above, or on, ground level?

Stress:
Is the establishment a high-stress atmosphere?

All of these factors can have a significant effect on the type, and manner in which, a security application is deployed. In addition to the on-site scenarios indicated above, consideration must also be given to behavioral and motivating factors that can influence certain types of crimes, and identify specific types of offenders. For instance, depending on your type of organization, a theft may be more likely to be perpetrated by an employee than a complete stranger. Below is a general guideline for behavioral or motivating factors associated with the following crimes:

Theft:
Dispassionate crime. Objective is personal gain.

Assault:
Passionate crime. Objective may be revenge. Usually committed by employees or their spouses/ex-spouses, relatives, friends or associates.

Fraud/Product Tampering:
Passionate crime. Objective may be revenge or personal gain. Can be committed by employees, customers or contractors.

Vandalism:
Can be Passionate or Dispassionate crime. Objective may be revenge or boredom/recklessness. Usually committed by young adults/adolescents or disgruntled employees.

For each of these crimes, the deployment of visual deterrents, such as security guards and surveillance cameras, has a varying degree of effectiveness. For instance, a passionate offender, such as the ex-spouse of an employee whose mind is unequivocally set on an onsite assault, is less hindered by the presence of security cameras than the burglar, whose goal is to perpetrate a theft without getting caught. By understanding the security factors pertaining to your specific organization, as well as the types of risks your organization may face, you, or your security agency, can develop an efficient and effective security plan, which in the long run, can save you a considerable amount of time, money and resources.
About the Author:

Harold German is a renowned author and contributor, with appearances on CNN and in noted international publications, such as The Economist. Mr. Germans latest articles focus on becoming a security guard, as well as how you can start a security business. He is a senior writer for Partner Service Sites. Copyright

Source - Mitigate Risk for a Successful Workplace Security Plan

Mortgage Loan Modification 5 - Home & Real Estate Marketing Nov08 - Loss Mitigation works for Banks

Loss Mitigation For Bank Of America

Question: I need help on my Loan Modification on Bank Of America?

I am late 9 months on my mortgage with bank of america loss mitigation. I dont know what too do? Should i be using surplus or defceit to qualify for a loan modification?? Please help! i am a single mom from NJ

Answer: Go to a councelor at http://www.novadebt.org/

Hope they can help you....

Short Sale Loss Mitigation Tutorial