Real Estate Agencies Club Together to Contain Foreclosures

Prominent real estate agencies have clubbed together in attempting to contain foreclosures. RE/MAX International based in Denver and Colorado as well as HEART financial services of Illinois have come to an agreement to work jointly to help bring down foreclosure numbers. They have ventured on a novel ‘Short Sale’ tactics will make it possible for families to sell of their houses without undergoing the pain of foreclosure.

David Liniger of RE/MAX International said, “It’s unfortunate that the Short Sale process has been so difficult to navigate in this marketplace. 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.”

For those house owners who are at risk of losing their homes and yet do not qualify for loan modification will now have a practical alternative before them. Lenders who are agreeable to loan modifications have also been asked to participate in this unique Short Sale plan.

Trained personnel conversant with Short Sale procedure will provide the information to borrowers who cannot avail of loan modification or are not interested in keeping their house. If the borrower feels that the Short Sale path is the right option to pursue they are directed to a website where more details are given and they can choose a realtor from their locality. RE/MAX has fashioned this novel data base that is available online.

Jerry Alt of HEART Financial Services said, “It’s been our experience that many homeowners aren’t even aware that Short Sales are a reasonable alternative to foreclosure. 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.”

Millions may benefit from short sales according to RealtyTrac. The third quarter saw a record number of foreclosures. This is a ‘shadow’ inventory that has yet to hit the market; when it will there will be disaster.

50% of all the applications received for loan modification are not qualified for it. Even then after having availed of it a high percentage defaults. Liniger said, “We have been talking to numerous industry leaders, legislators and Administration officials trying to draw attention to the Short Sale situation. 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.”