Foreclosure Response Team Completes Pilot Program-First Uniform Process For Streamlining Short Sales

Scott Coloney, president of Fort Lauderdale-based Foreclosure Response Team (FRT) has announced the completion of a national 20-month Pilot Program of its “Uniform Short Sale Process.”


The only full-service, interactive short sale solution in the country, Foreclosure Response Team's (FRT) Uniform Short Sale Process consists of: a national network (“Response Team”) of local real estate agents, title companies and attorneys, coupled with centralized loss mitigation support and innovative short sale processing technology that expedites and streamlines the short sale process from pre-listing to post-closing, Online Management System (OMS).

Working in collaboration with the FRT, Denver CO-based Default Servicing Solutions (DSS) conducted the Pilot Program and tracked the performance of Affiliate real estate agents throughout 28 states over a 20 month period. DSS is the premier provider of default management services. Processing tasks for six of the top national mortgage servicers, DSS provides a central processing hub for FRT Affiliates.

Results report a national closing ratio of 48%, with a closing timeframe of 99 days from contract to purchase. In addition to the OMS report, the Pilot Program also concluded that by assigning one loss mitigation processor regardless of the number of listings, real estate agents were able to process three to four times the number of listings typically feasible, by turning their attention to actually selling the property. Current FRT real estate agent Affiliates number approximately 2,000 nationwide.

Importance of a Uniform Short Sale Process to prevent foreclosure:

Real-time communication, transparency and quality control - is attained through the OMS which allows FRT Affiliates to easily track and manage multiple short sale files throughout the process. The OMS facilitates all documents and requests, and ensures team accountability through a centralized, paperless and interactive platform. (Vs.) All parties involved in the short sale working in different systems for each file, managing an inconceivable paper trail, are unaware of the status of documentation pertaining to a file, and have no liability over their role.

Identical short sale packages - are facilitated nationwide by a network of Affiliate short sale experts who all use the same centralized loss mitigation division. These highly-specialized loss mitigation processors effectively prepare short sale packages with all necessary documentation and presentation format required by the bank. (Vs.) Fragmented and inexperienced real estate agents and title companies with inconsistent methods for preparing a short sale package.

Proper attention to marketing and selling of the home - is achieved by assigning a dedicated loss mitigation processor who serves as one point of contact for the real estate agent who is relieved of the cumbersome and complicated tasks associated with the processing of a short sale. (Vs.) The real estate agent having a typical 18 points of contacts when handling an average 10 short sale listings, and dealing with the processing all of the paperwork involved in the short sale instead of focusing on the sale of the home.

Banks are provided a solution - to the back log of pending short sales offers by receiving short sale packages that are consistent each time and meet bank guidelines; assisting in the decision making process and reducing closing timelines. (Vs.) Receiving inconsistent packages from across the U.S. lacking the necessary information and form required by the banks, making it harder for decisions to be made in a timely manner.

“Foreclosure Response Team provides a real solution for American’s struggling with their mortgage. As borrowers continue to submit their short sales through our uniform process, we are able to expedite the sale of these properties so they do not go into foreclosure and help save their credit from further deterioration. By keeping real estate sold instead sitting vacant, we can help stabilize the economy and housing crisis,” said Scott Coloney, president Foreclosure Response Team.

"We knew that the people who would have the most meaningful impact in executing Short Sales would be the agents and brokers working directly with the borrower/seller. In order to provide a breakthrough solution, it is critical to provide a great tool and service to the agents. Foreclosure Response Team has successfully provided both the service and innovative technology that the industry needs," said Mike Sullivan, Chief Executive Officer of Default Servicing Solutions.

Track and Micro-Manage = team accountability

FRT’s highly-organized structure ensures that every short sale file is tracked and micro-managed; evidencing listing activity as recorded in the OMS, increasing transaction efficiency from listing to post closing, and improving closing ratios.

“Track” - all OMS activity associated with a file is documented and includes listing and contract information, contact information for all parties, loan activity; loan status is provided in real-time. All data entry and document uploads are stamped with the time, date and user name of the party. Required addendums, forms and lender specific documents are provided to agents in a central online forms drawer. In addition, key parties are able to email directly from the electronic file and emails are stored with the file.

“Micro-Manage” - a designated loss mitigation processor is assigned to each real estate agent as one point of contact to micro manages the entire short sale process from listing to post closing in the OMS. Processors undergo rigid training and supervision, and also utilize DSS’s proprietary loss mitigation application, M-Vue. DSS thoroughly reviews each short sale package prior to being submitted to the bank to ensure bank guidelines are being met.

Score = proven performance

To maintain its position as a reliable and credible national resource, Affiliate real estate agents are required to remain proactive within the OMS system and fully engage with the Response Team throughout the short sale process.

“Score” - as agent Affiliates work in OMS, they begin to build a scorecard based on average turnaround time for document collection, pending contract and closing ratios. Real-time scorecards are displayed in the Agent Finder located in OMS; consumers will have access to the Agent Finder by January 2011. Score advancement is achieved by active participation in the OMS, advanced training and by increasing short sale closing ratio. Underperforming Affiliates may be terminated and permanently removed from the OMS.

Response Team Realtor Affiliate status levels include Basic Affiliate, Silver Affiliate, Gold Affiliate and Platinum Affiliate. Statuses are achieved by demonstrating proven short sale performance and activity tracked in OMS, as well as by completing advanced multi-level training provided by Response Team for top-level education critical to short sale success.

The Foreclosure Response Team headquarters are located at 600 South Andrews Ave., Suite 300, Ft. Lauderdale, FL 33301. For more information on becoming an Affiliate, or to learn more about how the Online Management System can help increase your short sale success, call Scott D. Coloney at (954) 760-4888 or visit www.ForeclosureResponseTeam.com.

Company Contact Information
Yaffa Mizrachi Public Relations
Yaffa Mizrachi
Miami Beach
33141
305-610-5788

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