Posted by Denise Stovall on September 26, 2009 at 4:14am
Is it a rumor or a fact? Short Sale transaction conditions have supported that lenders are stepping up to the plate and offering both their Delinquent Borrower/Homeowner and Realtors "Deals" to remendy a default/delinquent loan by a quick Short Sale transaction. Full borrower cooperation supported by experienced Real Estate service is the key to success. Incentives usually add up to dollars and cents for everyone involved; lender-borrower-realtor.Denise StovallNorthern CaliforniaSonoma County
That's the same program we're implementing except ours doesn't have a name. We get them pre-approved and there's still room for negotiating. I guess the only difference is in our program the bank uses us to reach out to the homeowners also. It's a great program and I expect more banks to catch on.
HomeTelos has a very similar program called LEO (Loan Exit Option) the biggest difference is the Short Sales they offer are Pre-Approved....really. The bank sends out a letter and makes a phone call to the homeowner, educates the client and if they decide to proceed, contacts the Listing Agent to get paperwork complete and boom, it's Pre-Approved and ready to go.
George, That program sounds great and if you can load everything on reotrans what a time saver. Just one place to put the docs and send only one time every one involved can go there to review docs.
George, great news! It would improve a lot the short sale process if lenders start moving towards a platform to manage them. No execuses for misplaced paperwork and everybody knows who is handling the file.
FYI...just last week...out of the blue a lender gave us the "Listing Agent" an incentive of a adl. 1% to close early by monthend. No joke. Not requested it was given...you betcha. Lucky for us it was a good fit for all.
We have a client that has a great short sale program that's actually working. They send us a stack of letters to hand deliver to the homeowner in default. The letter basically says that they will give them $2500 in cash and report "paid in full" on their credit report and of course no deficiency judgement. Once they accept, we list the property and treat it like an REO. Currently out of every 10 letters we deliver about half will sign up. It's a win-win situation for all (in most cases.) We did such a good job with that program that we got our biggest REO account from that.
Another positive thing happened for short sales this week also. One of our traditional short sales, that we have been working on for months, called us and said the transaction will now be handled through reotrans. That means we can submit all the required docs through the portal and there won't be those extremely lengthy review periods or misplacing of the documents. Once submitted it will immediately be reviewed for processing and it will cut the time down by months. That's a tremendous step forward that is desperatley needed. It's only a pilot program but it should cath on fairly quick.
I haven't heard of incentives but, I do know that the industry is dramtically changing from REO to Short Sales. I blogged about this change almost a year a go and after 5 Star......my blog was legitimized. In fact, now we are seeing more and more banks doing Short Sales before the first default.
I haven't heard of any Realtor incentives yet. We have several people in my office working short sales and all have complained of commissions being cut at the closing table without any notice beforehand.
Comments
That's the same program we're implementing except ours doesn't have a name. We get them pre-approved and there's still room for negotiating. I guess the only difference is in our program the bank uses us to reach out to the homeowners also. It's a great program and I expect more banks to catch on.
Crazy time to keep track.
Another positive thing happened for short sales this week also. One of our traditional short sales, that we have been working on for months, called us and said the transaction will now be handled through reotrans. That means we can submit all the required docs through the portal and there won't be those extremely lengthy review periods or misplacing of the documents. Once submitted it will immediately be reviewed for processing and it will cut the time down by months. That's a tremendous step forward that is desperatley needed. It's only a pilot program but it should cath on fairly quick.