Short Sale Fix? Time Will Tell

Good Morning All

In an effort to be proactive in dealing with the always "frustrating" short sale process, Bank of America has made a move to using Equator, formerly known as REOTrans.  Below is an article on the move.  I have some comments on what all lenders can do to help expedite the process, but for now:

 

10/22/2009 By: Carrie Bay, reporter for DS News

 

California-based Equator (formerly known as REOTrans) says it has launched the industry's first-ever short sale module for a large national lender.

Although Equator declined to name the lender, the San Francisco Chronicle has reported that Bank of America is the company in question. A representative from BofA recently told the paper that they were using the Equator platform to manage the short sale process.  "This is the first time that short sales have been handled through an electronic platform," said Equator CEO Chris Saitta. "With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents."

 

Short sales, in which a lender and borrower reach an agreement to dispose of a property threatened by foreclosure at a price that is "short" of the amount owed on the mortgage, have become more popular among lenders lately as a viable method for dealing with distressed properties. According to Equator, the number of successful short sales has increased spectacularly across the country in the wake of the foreclosure crisis.

 

Kevin Kieffer, a Realtor with Keller Williams Realty in Danville, California, told the Chronicle, "A year ago I wouldn't touch a short sale. It would be random prices banks wouldn't agree to, you would be tied up six months hoping to get a property sold. But now we're seeing banks up front negotiating prices and giving us criteria. They're getting creative to make things move." 

 

Equator says the keys to a successful short sale are accessibility, responsiveness, communication, and fulfillment. By adopting its short sale platform, the company says large lenders, such as the unnamed Bank of America, can ensure troubled borrowers have 24/7 access to a portal through which they can provide the necessary information to process a short sale and receive real-time status updates electronically.

"Short sales can be a daunting, complicated, frustrating task for everyone involved," Saitta said. "This fresh approach using our sophisticated platform makes it fast and efficient for all parties involved."

 

Equator's short sale module also automates decisioning for the lender, handles approvals for faster turnaround, provides quick fulfillment, and assures full compliance with government programs, Saitta said.

 

My recommendation to all lenders out there who are dealing with a lot of short sales, is simple.  Train your staff properly.  The real estate agents out there who are working the short sales, are your allies.  Treat them as such.  A lot of the lenders I have dealt with, have employees in customer service positions who are malcontents.  A poor attitude from the lender's customer service department is frustrating to the agent and is enough in some situations, to have the agent give up.  Memo to the lenders: Call me and I will show you how you can implement an user friendly process to help facilitate all of your short sale files.

It's November 4, 2009, and I am very Bullish on Sacramento

David Ohara

@dwo34

dwo34@aol.com