John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... Denver-based RE/MAX International today said that has teamed up with an Illinois loan modification company to help homeowners avoid foreclosures.
RE/MAX, based in the Denver Tech Center, is working with HEART Financial Services of Northbrook, Ill. to create a pre-foreclosure or short-sale strategy that they hope will make it easier for families to sell their homes and avoid the trauma of a foreclosure.
“It’s unfortunate that the short s\ale process has been so difficult to navigate in this marketplace,” said Dave Liniger, Chairman and Co-Founder of RE/MAX International. “We’ve been working hard to promote streamlined short sales to provide both significant benefits to lenders, and a welcomed opportunity for homeowners to get a fresh start.”
At-risk homeowners who do not qualify for a loan modification will now have a viable alternative, and will not be forced into foreclosure.. Lenders that offer loan modifications to their at-risk borrowers will be invited to participate in this new short sale program.
Trained customer service representatives will provide detailed short sale information to all homeowners who cannot obtain a loan modification or do not wish to retain their property.
If a homeowner believes that a short sale might be appropriate, they are directed to a secure Internet Website where they can obtain more information, and select a real estate agent in their community who has received comprehensive training on the shortsale process. RE/MAX has designed this online database to assist homeowners with short sale information and easy agent referrals, and will use the closing management services Integrated Asset Services of Denver.
“It’s been our experience that many homeowners aren’t even aware that Short Sales are a reasonable alternative to foreclosure,” says Jerry Alt, President and Chief Executive Officer of HEART Financial Services. “Each month we speak with thousands of homeowners who can’t qualify for or don’t want a loan modification. For the most part, when we refer them back to the servicer for a potential short sale, we lose the opportunity to help the borrower while we have them on the phone. Now, we can offer these homeowners some hope and a more efficient process to list and sell their home.”
The number of homeowners who could rely upon a short sale may be in the millions. According to RealtyTrac.com, July, August and September had the highest foreclosure numbers on record and some analysts say there is a “shadow” inventory of foreclosed properties as high as 7 million, which could start hitting the market in a few months. Earlier, InsideRealEstateNews.com reported that the shadow market could increase the Denver-area supply of unsold homes by 78 percent.
Out of all the applications reviewed for a loan modification, less than 50% are successful. And a high percentage of successful loan modifications eventually re-default.
“We have been talking to numerous industry leaders, legislators and Administration officials trying to draw attention to the Short Sale situation,” says Liniger. “It’s just not possible for the housing market to recover fully until the inventory of foreclosed properties is significantly reduced, and short sales offers one practical way to help do this.”
There are over 11,000 real estate agents in the United States who have received the Certified Distressed Property Expert professional designation. More than 60% of those are affiliated with RE/MAX. In addition, the National Association of REALTORS also offers a similar Short Sale, Foreclosure and REO (SFR) designation. Agents who have received special Short Sale training like these designations could be selected to participate in this new short sale program.
Short sales can occur when a lender agrees to accept a sales price for a home that is lower than what the homeowner owes on the mortgage. The short sale transaction is more complicated than the average real estate sale and consumers are urged to deal with agents who have specific training in the process.
HEART Financial Services will begin offering the newly developed short sale process to the loan modification applicants of their clients within the next few weeks.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
