Proactive Short Sales

Short sales could significantly reduce your default pipeline—if you approach them proactively with the right people, processes and technology.

Although short sales return higher sales prices than REO sales and offer borrowers a more graceful exit, today’s reactive short-sale process is cumbersome and difficult. CoreLogic^® eliminates short sale challenges by simplifying the process and providing a flexible solution to fit your organization’s specific disposition needs.

After examining the common short-sale pitfalls, we re-engineered the process, shifting it from reactive to proactive. In addition, we examined our clients’ other common pain points—resource overload and mortgage fraud—and built an all-inclusive product and service solution.

Using a combination of data, analytics, technology and skilled people; our solution breaks down the proactive process into these simple steps: 

• Identify short-sale candidates
• Contact targeted lists of borrowers
• Educate and help relocate borrowers
• Manage asset disposition
• Protect against fraud

Our proactive approach puts you in the driver’s seat, enabling you to initiate and guide short sales to closing.

Identifying Short-Sale Candidates

Rather than wait for an offer to determine whether the property and borrower qualify for a short sale, we provide information you need to reach out to qualified borrowers and help them move through the short-sale process. We do this by first verifying and augmenting your data against our property and ownership database, the nation’s largest, most complete and most current. We then apply advanced analytics to stratify your portfolio and determine which borrowers are most likely to qualify for a short sale. The result is an actionable, segmented list of borrowers and properties that meet your criteria of ideal short-sale candidates.

Borrower Outreach

Before you reach out to the borrower list, we can help you establish workflow processes and ensure you have adequate resources in place to manage calls, answer questions, and make decisions.

Resource support can include:

• Outreach and inbound customer contact teams
• Vast valuation network
• Nationwide real estate broker panel
• Skilled staff augmentation

Even when borrowers want to avoid foreclosure and may be open to a short sale, they can be difficult to reach. Because no single method is likely to reach all identified short-sale candidates, we developed a multipronged approach. Using an appropriate mix of phone and mail outreach, interactive Web portals and door-knock outreach; we take an innovative, origination-based marketing approach to contacting borrowers.

Borrower outreach can include:

• Call Campaigns
  • Targeted auto dialers
  • Event-driven calls
• Direct Mail Campaigns
  • Non traditional, origination marketing approac
• Borrower Portals
  • Less intimidating method for borrowers to engage
  • Compresses timelines for rendering decisions
  • Automates collection of borrower data
  • Improves data integrity and quality control
  • Maintains constant communication and transparency
• Door Knock Campaigns
  • Provides the ability to educate and obtain face-to-face resolution

Educating Borrowers and Easing Transitions

Borrowers often lack credible information on short sales, so one of the first things we provide is specific, accurate information on short sales that pertains to the borrower and property location. Our detailed reports include general short-sale information, as well as a comprehensive, yet easy-to-grasp report of the borrower’s situation and surrounding market conditions to support listing price recommendations. To facilitate the short-sale process, we can also help you establish and present borrower incentives such as relocation assistance and similar programs that keep short sales moving and reduce the risk of property damage.

Customized borrower education packets

• Easy to understand report explaining the process and Fair Market Value of the home to the borrower
• Educates the borrower on their short sale options
• Supported by data-enhanced neighborhood valuation data
• Helps the borrower understand their situation and surrounding market
• Enables rational discussion around disposition as an option

Included short sale and deed-in-lieu agreements

• Can improve resolution by enabling borrowers to act immediately
• Provides further option of deed-in-lieu if the borrower declines a short sale

Managing property disposition

Once the borrower signs the listing agreement, we begin aggressively marketing the property using proven processes borrowed from our REO services operation. Listing, marketing, offer negotiation and closing are essentially managed as REO transactions.

Short sales, differ in that the property may remain occupied and maintained and you avoid the need for evictions. There is also the complication of junior lien and mortgage insurance (MI) negotiations.

We can manage the process and maintain the property from initial referral to final closing. While continually evaluating market conditions and monitor broker progress, we can negotiate offers, and manage the junior lien and MI negotiations for you, freeing up your resources and helping to improve your pull through. We can also generate and deliver closing documents and provide recordation services.   

Short Sale Asset Management Leverages REO core competencies including:

• Relocation assistance (Cash for Keys) 
• Listing 
• Marketing 
• Offer negotiation 
• Closing  

Short Sale asset management differences:

• No eviction or foreclosure sale 
• The property is and can remain occupied and thus maintained 
• Junior lien and mortgage insurance negotiations are managed for the servicer/investor during disposition

Protecting Against Fraud and Validating Valuations

Short sales attract fraud perpetrators who hope to buy low and sell high with little effort, investment, or concern for the law. While it’s perfectly legal to resell properties for a profit, it’s not legal to initiate a resell before the short sale closes or to misrepresent or omit facts.  

Proactivce Short Sale Services helps protect against fraud by enabling you to initiate, drive and manage the process. The solution also allows you to work with real estate agents and brokers from our approved broker panel and includes exclusionary-list checking. We also offer innovative fraud detection analytics, including our innovative Short Sale Monitoring Solution that checks for other loan applications filed on the same property. After closing, Short Sale Monitoring tracks short-sale properties for 90 days and notifies you when we spot activity, which is especially helpful in enforcing holding-period clauses often written into short-sale contracts. We also comprehensive fraud detection through our LoanSafe Fraud Manager and FinalCheck for last-minute checks of undisclosed borrower activity or credit score changes just before funding.