What Should I Write to Loss Mitigation Department?
June 29th, 2009
I'm going to submit a written offer for a property to the loss mitigation department. In my letter, I would like to explain that I'm submitting the offer for that amount because of current market conditions. What should I write? How should I phrase my offer so that they are more likely to accept it? I heard that there is an industry standard of what to do when contacting the loss mitigation department of a bank.
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Posted in Loss Mitigation, Loss Mitigation Consultant, Loss Mitigation Department, Upside Down Mortgage FAQs | 
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Although you would think it should matter, the bank will likely not care. They have already done a substantial amount of work (or will do once they receive your offer) to verify the most likely $ the house should sell for in a 90 day time line.
What the bank will do is pull comparable homes that are within 1 mile if in a urban location or 5 miles if rural that have sold in last 6 months and see what they sold for. They will make a list of repairs and have estimates for them. Based on the condition of the home they will have a figure in mind that should be acceptable. This is called a Brokers Price Opinion.
If you want to do this work for the bank that’s fine but they will verify independently. In addition, if the bank has not completed this work understand that you may be waiting a very long time before you hear back from them about accepting your offer. Buying homes in foreclosure is a time consuming process.