Focused on the Future.........
Although he's successful at short sales, RE/MAX's Burrell concedes that more needs to be done to make the process work better: "One, we have to be able to have th offers qualified upfront. That way you get realistic offers and get the process going. Two, we need to break up the offers. The banks are swamped. Though they are trying to keep up, they need to outsource much of the work. Three, we need additional companies with trained people, perhaps former bank staff along with new people who can handle the huge demand that will be out there. Four, we need to implement innovative technology for speed and efficiency right now. That is critical. These things have to happen for the system to become streamlined and faster. This must happen for the system to become streamlined and faster. This must be the wave of the future for short sales."
Brinkley believes that the only significant push-back will probably come from the smaller junior lien investors. "However, the pressure on this type of investor--from the public and government sectors--to comply with HAFA protocols will be significant, " he added.
McCabe agrees with Brinkley that while HAFA is likely to be adopted successfully within the industry, the issue of the role junior lien holders needs to be addressed. "The second major hurdle, " said McCabe, "is the adoption by a mortgage insurance company to approve the short sale without a promissory note. If the borrower has the capacity to pay on an unsecured note, an mortgage insurane company will likely require such." Such issures, as McCabe and Brinkley noted, are likely to pop up increasingly in the next year as short sales continue to become accepted by the industry and are the reason the discusssion over short-sales best practives cannot end with HAFA.
But as the Fed continues to dangle more regulatory carrots to make the process more transparent and eefficient, short sales will continue to gain momentum. Satterwhite added, "Short sales will continue to gain acceptance and interest as the government initiatives continue to provide incentives, along with vastly improved technology to make the process faster and better. When we do this, we make short sales more attractive to all parties as a preferable alternative to foreclosure, so the short sale can bring us part of th eway to a housing recovery."
To be sure, a healthy housing industry buttressed by successful short sales won't just benefit beleagured borrowers, frazzled lenders, and stressed servicers--it will help the entire country, which has been hammered by the financial ripple effect of foreclosures. And it's the indusstry itself that's poised to bring it back from teh brink, emphasizes Bureel. "It's patriotic, " he said. "Our industry helped cause this problem; we need to be the ones to fix it. Not just for recovery of the housing industry, but to save America."
Wednesday, February 10, 2010
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