The new “Proactive Short Sale”
Here is a new & different Type of Short Sale.
With distressed properties still accounting for almost 50% of all sales in Riverside County the Short Sales continues to be a viable option for homeowners. Thanks to new programs like HAFA implemented by the U.S. government and many Servicer programs Short Sales have become faster and easier to complete.
One of the major changes to the process has been the introduction of ―proactive Short Sales.
Traditionally, Short Sales are ―reactive in nature. This means the homeowner would initiate the Short Sale process with an Agent who would then list the home and begin to solicit offers on the property.
Once an offer was received, the Agent & Servicer would begin the short sale process to determine if the homeowner was eligible to short sell their home. While this is the tried-and-true method,it sucks. Servicers and lenders have realized there is much room to improve a short sale by becoming more proactive much earlier.
Proactive Short Sales begin with the Servicer working to determine if the homeowner is eligible for their particular Short Sale program, and then reaching out to notify the homeowner that they are eligible. If the homeowner agrees to proceed with the Short Sale process, the Servicer then determines the acceptable sale price.(here is were this process may fail) The homeowner and agent then place the property on the market to entertain bids. Hopefully this new program will feature rigid time frames for the Servicer to respond once a bid is received, providing greater accountability for the Agent, homeowner, Servicer, and potential buyer.
Agent initiation of Short Sales works for both reactive and proactive types of Short Sales. While it is ultimately up to the Servicer to begin a ―proactive‖ short sale, many homeowners and Agents use the agent initiation feature on Equator to let the Servicer know that they are interested in a Short Sale. ―Proactive Short Sales may greatly reduce approval time lines, improve communication, reduce foreclosure rates, reduce loss severity and create faster sales.
Lets see if Equator remains dedicated to helping Homeowners & Agents by simplifying the Short Sale process and enable more short sales in less time. That would be a good thing.The new “Proactive Short Sale” is another move in the right direction.