My Letter to DST/DispoSolutions

More then a month ago, like many of the folks here, I got am email from DST/Disposolutions about their new fees. And I replied by to their request for payment saying that I had not heard about this yet. Well, Monday this week I finally get a response from Jay Rawlings:

 

 

"Mr. Adkins,

 

First of all, our sincere apologies for the delay in this response.  Due to overwhelming response to our new subscription offering, our ability to respond in a timely manner was overwhelmed.  We realize a response may no longer be relevant, but we did not want to ignore your question.

 

I am not sure why you did not get the prior notifications.  We sent one in January notifying of this change and then at least two before that one.  I’m sorry you did not get them.

 

We will not actually remove any accounts from the system for some time.  But we are trying to weed out inactive accounts in the long term. 

 

Please let us know if we can be of further assistance.

 

Jay Rawlings
Application Support

 

Default Servicing Technologies, LLC"

 

 

Kinda funny to me to even get a response, I guess they were not in a big hurry since they have so many folks throwing money at them. Here's my response:

 

 

"Thanks for the reply Jay.

 

I understand the need for improvements to any system and the cost behind them, if that is the case here. But can you tell me how this is going to benefit me? To what advantage I would receive by paying for your service?

 

I have had a membership with your service for 6 to 9 months I guess, don't remember when I actually signed up. Prior to this "upgrade" (I have to assume it's an upgrade since you are now charging to be a member of your service), I have not received any correspondence from your company of any type, much less a request for BPO's. If I pay for your service, will you guarantee me business? Do you have any business in the West/Northwest Atlanta Metro area?

 

Would you agree with me that it would be financially foolish to pay money to be put on a simple list and "hope" someone will notice me and send some business my way? There are too many services like yours now (most do not charge a fee to agents), competition is getting tough in this ever changing business. Please explain to me why I should pay the fees you request when I have not received ANY business from your company to begin with?

 

This industry is quickly becoming littered with companies advertising services like yours. I don't mind paying your fees if I know I'm going to get business back. Like you and your company, I MUST recover my expenses in order to stay in business. Will you guarantee me that my investment into your company will be an investment into MY company?

 

Thanks

 

 

Steve Adkins - REALTOR®"

 

 

 

I wonder if it will be another 5 to 6 weeks for a response? Not that I actually expect one. I know what it will be anyway.

 

So, has anyone seen any increase in business after they paid the fees to maintain thier membership?


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Replies

  • I isigned up and recieved 2 assignments both fanniemae owned. Fannie does not allow them to charge the agent so to get around this they sent me a invoice for $150 per transaction of which I was paid the min $1000 commission. And this invoice same some time after closing. I was told this was a fee to use website. Now what really gets me is that they demanded I pay 2 weed liens immedaitely and send proof of payment right away. I did this and sent copies of the checks along with a receipt from the city showing payment. To date we have not recieved reimbursement for these which totalled over $350. I understand on occassion things do not get reimbursed, and at times it is my fault, misfiled invoice, or missing the 3 day after closing deadline but to not reimburse when you have sent everything in and then harrass you over some fee you were never told about or agreed to is just greedy. I do not care for these tactics and have stayed with the companies I have a track record with. First American, Assetlink, now Servicelink, FreddieMac, even Ocwen sends emails alerting you there is a financial cloosing coming and warning you of the deadline for reimbursements.
    I am no longer interested in new asset management companies charging fees to join. I see the HUDS and I do not have a problem with Asset Companies making money, but when I see how much some of these paying companies get directly from the bank and then referral fees, I feel taken advantage of. So lesson learned, I stay with the companies I have worked with for the last 8 years, and forget the rest. I have a mortgage to pay also.
  • Hi Steve,

    In 2008 I did 22 properties through Dispo from Tactical REO, (Tactical REO went by the wayside in 2009 when Litton pulled all their properties from them) 2009 I only did 2 properties with them and so far for 2010 I have had 2. It’s very interesting to me to see how this will pan out this year now that they have a membership fee, many agents will in fact refuse to pay….will this simply mean there will be a smaller pool of agents and by default the paid members will receive more business?

    Even though I only get a few from them it is well worth it for me to pay the $125 so I'm not ready to throw in the towel on them and feel it is a good investment for me. It was AFTER I paid the membership that I started getting properties this year, I consider them just one more source that generates listings…and more importantly…money! Maybe the move to purge agents and inactive accounts put me in a better position??

    I think the moratoriums in 2009 hurt most REO Brokers and it was a serious wakeup call for me to be as diverse as possible, I would rather keep all avenues open than depend on just 1 or 2. Equator has always been my main source for listings and even though I am only 5 months in with ResNet I am already receiving a few from them and feel there will be many more. Whether you’re getting 30 properties from one source or 3 from 10 it equals out. I am tracking my best year so far and even though Dispo is not a main source by any means they do add to the mix.
    • Thanks Tony, good feedback. Where you located? And as far as the listing assignments, do they provide the property management services or do they expect the agents to do all of that? Dispo doesn't release a lot of info until you sign up, even when I asked a manager directly.

      I think their fees are reasonable...if you are getting business from them. But I will not pay to have my name put on a list, that's just a waste of money.
      • Hey Steve, I don't think they release a lot of good info even after you sign up...lol. I'm down in Southwest Florida area, mainly Sarasota and Charlotte counties.

        I don't have any AMC's at this point that require me to do the preservation other than rekey and utilities, thats not saying that I won't, but I just don't have any right now. This is quite different than when I first started as all the companies expected me to not only pay but arrange and oversee as well. I can remember having as much as $20k out on the street at one time waiting for reimbursements.

        I think the biggest part of the problem when deciding to sign up with different platforms such as Dispo or Equator is that many agents expect to generate automatic business through them....which it could...but seldom works that way. I haven't done a BPO through a platform in probably two years but I do many for companies that use these platforms to manage their properties, I think that is why I get listings.

        I will say……I use platforms as advertising and to manage the task of the asset companies that use their portal, I have never gotten a call direct from Equator, Dispo or ResNet, only from the companies that use them. The most important area of the platform is the agent profile info, if you don’t have a good profile then the chances of getting chosen for a listing is close to zero unless you’re the only agent alive in your city.

        Here’s what I mean….An agent profile is not just zip code coverage and how long you’ve been an agent, it is to sell yourself as being the obvious choice. I learned a lot from the “Ask the AM” section as to what an AM looks for. And just briefly I will say in order what is important for me to update references, training , certs, E&O policy info, website info, companies I have done assets for and time managing REO properties. All these must be consistently updated and current.
        • Good points Tony. And I have to agree with all of them. Yes, I have followed "Ask the AM" since it's started, even met poor ole Ned Landers in person at a class he hosted here in Atlanta.
  • Never had a problem with Dispo here
    • Does that mean you are getting business from them? What state are you in?
      • Hey Steve,

        I too have not had a problem with Dispo. I get listings from Dispo and got 1 this year. I also do several BPO's through Dispo too, at least 3 a month. I'm located in the SF Bay area.
  • HAAA ! That is a template! I received the same response ! They are forward thinking over there at Dispo - they already have a retort for the objection!! HAAA!!
    • LOL, now this is funny!
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