There are so many great things to say about the Loan Exit Option program, I don't know where to begin. So I will start from the beginning. When I was initially approached to participate in the pilot of this program, my biggest concern was the stigma that word Short Sale have. Traditional short sales on average take 60 days before a negotiator is assigned to the file. Then an additional 60 days and multiple BPO's before an approval is rendered. By this time buyers are frustrated, sellers are discouraged and the property may or may not be on the chopping block to be sold on the court house steps. Good luck trying to get it postponed if you haven't been assigned a negotiator, and in some cases even when a neog is assigned the property still ends up being foreclosed. This is all too common and what many Realtors and homeowner associate with the word short sale.
Having successfully sold five short-sales through the Loan Exit Option program, several short sales the traditional method, as well as with 3rd party negotiators; I can honestly say, Hometelos LEO is by far the most efficient and should be the only way short-sales are sold. On average, within 10 days of initial assignments these properties were placed active on the market with a conditional Settlement Letter on File. I'm 100% positive, marketing these properties as PRE-APPROVED Short Sales, as well as their exceptionally well maintained condition, were the reasons each and every one of them had multiple offers within the first 7 to 10 days on the market. Not only did they have multiple offers, but they all closed and qualified for buyers with FHA financing..
Part of the home owner’s responsibility for participation in the program is that the property must be in marketable condition.
One of my assigned properties was denied entry into the program until it was brought to a marketable condition by the owner. Within a week the owner brought the property to marketable condition and it was allowed to be placed into the program. This is similar to what REO Brokers refer to as Cash for Keys (CFK) with bank owned properties. The only difference is no cash is given to the owner or previous occupant. The incentive to the owner is they are being allowed to short sale their property instead of having it foreclosed (savings the bank thousands of dollars in fees that would be spent to foreclose, clean, maintain and evict, as well as, several thousand in declining home values that vacant homes are prone to.), and in cases when they are living in the property, they will be given a settlement for relocation upon sale. In a CFK situation the previous owner is given money regardless of the sale of the home, as long as it is left in broom swept condition.
Unfortunately many REO (Bank Owned) properties will not qualify for FHA financing due to their inferior condition, and this results in properties selling for lower than what that would if they were in better condition. This is great for investors, and cash buyers that can make improvements, but terrible for comparable values and fist time FHA home buyers.
As an experienced Realtor/Broker and REO broker, I can honestly say LEO will play a critical and role and be on the forefront on bringing about stabilizing and appreciating housing values across the nation. I don't know, nor have I heard of any other operation doing what we have already done with LEO. I'm looking forward to our recovery as we approach 2010 with Leo on the forefront. Lenders, Banks, Loss Mitigators, if you haven't got on the shuttle, you should hurry as we are counting down for take off.. You don't want to miss this shuttle!!
For more information on Hometelos Leo visit www.hometelos.com www.code3realty.com www.firstpreston.com