Posted by John Behle on June 03, 2007 at 23:27:27:
In Reply to: Foreclosure Loss Mitigation? posted by Gopal on June 01, 2007 at 08:16:19:
No one has answered you because I have been out of town most of the last month. Sorry for the delay.
I know Donna. She is one of my students. I also know her other mentor Jay Swob. Jay and I both taught on the subject of mortgage investing. One of his primary specialties is investing in defaulted mortgages. I assume he taught this to Donna well as she was his assistant for several years. Jay is the one who sent her out to my one week training in early 1991. I remeber because it was the last seminar we held in my office building that burned in late 1991.
So, Donna has been trained well and worked for a long time with Jay who I respect. Jay is one of the people that teaches about paper that truly knows what he is talking about.
As to departments in banks, Donna's teleseminar, etc. I can't comment on what Donna said as I have not heard her speak, read her materials or heard her teleseminar.
I have dealt with a lot of bad paper and there are many different scenarios. The foreclosure department usually has no knowledge of or decision making ability as far as selling the note. All I can hope to get from them is a name of who I can talk to. There is no standard department that you deal with in buying a note as there may not be a department at all. You just need to find someone who can make a decision as to selling the note. The person running their loss mitigation or foreclosure department will rarely even know what you are trying to do let alone if they can or sometimes even who to talk to. You just ask and get transfered around until you find the right person.
The person in the foreclosure department may be handlign the foreclosure but only as a service for the lender or owner of the note. Usually the bank does not own the note anymore, but is just servicing the loan. The larger banks or lenders usually broker or package and sell their notes. They make their money from placing the loan and from doing the servicing, but do not own it. Your best bet is with smaller institutions that actually portfolio their own loans.