Short Sale News
Observations from the Edge

November 7, 2007

Another tough day on Wall Street, driven in large part by fears that much of the worst news from the big banks and brokerage houses is not out yet. Losses of historic proportion and writedowns in the billions have shareholders frustrated. And, for those that invested in these securities, it is not going well at all.

These developments could have a very real impact on our lives in the Short Sale world. There are fewer and fewer places to hide for those that have chosen to engage in the 'guilty until proven innocent' approach for loss mitigation. I fully expect a groundswell of meaningful improvement in response times on files and a reduction in phone 'on hold' time. But, start looking for a kinder and gentler loss mitigator.

And remember, you can make a difference. Treat loss mitigators with respect always, regardless of what they send your way. Finally, DON'T LIE TO THE LENDER, EVER.

For those that want a better understanding of the mortgage derivatives market, Jon Markman does a great job of laying it out in his article 'Are we Headed For an Epic Bear Market (Jon Markman - 9/20/2007)'. View Article The article is a short, easy read that will give you a handle on how the manner in which mortgages were securitized has contributed to bad news in the market.

Look out for Mortgage Insurers and those representing them that are taking over the servicing of mortgages. They are way behind the curve....way off the reservation. Keep your cool. Be patient, but persistent. And be prepared to say no. You should not go along with working for free, and some of these guys are astounding in their ignorance. More on this subject as it develops further.