The "Equator System" is now in use by Bank of America and GMAC. Touted as a simplistic system to get short sales moving though the lender's system, is it really just an automation method that removes the human decision making element and makes our clients just a jumble of numbers? Also, how many of your clients are trainable to learn the computer system so they can enter pages of data and create Adobe PDF files of their financial backup material and then upload it to the Equator System?
I am going to take a fast guess and say that as to the second question, about 60% of my clients can "learn" the way to sign on to the Equator System. BUT of that 60%:
- 50% can figure out how to enter the information on the Equator System forms;
- 30% can figure out how to scan and upload the files;
- 50% have a scanner;
- 70% of those that have a scanner don't know they do and know how to use it.
Oh yes, of the 40% that can't learn how to sign on to the Equator System, 25% don't have a computer and never had a computer.
It occurred to us today that to make proper use of the Equator System, we will end up having to act as the borrower's agent to get the password and sign on to the system to enter all the information. Since we are already uploading this same information it seems duplicitous but maybe it will get streamlined as the lenders get used to the software.
But the real headache is that the borrower is ill equipped to learn the Equator System. Most borrowers have a job, maybe two. They just have the time, much less the computer knowledge to learn a pretty unforgiving software program.
So, where will the computerized short sale program take us?
Perhaps it will make processing faster - since much of it will be done by computer: Does the market value vs. price qualify; Does the borrower have sufficient disposable income to service the loan; Does the borrower have assets that can be liquated to share in the lender's loss; Is there a true hardship. I hate to see these decisions being reduced to zeros and ones.
Perhaps the software will slow up the system because of the difficulty the borrower will have entering the information into the lender's computer.
In my office we are offering to do the additional work for the borrower for a small additional fee to cover our labor cost.
At least one of my gripes is being addressed: If a lender says they will entertain a short sale, then it should do exactly that. When lenders take 8 months (my most recent Suntrust approval - at least they apologized for the long time it took!) for a short sale response, they really should not even be entertaining short sale prospects at all - it is a deceiving to the buyer and the borrower and the brokers working hard and uselessly waiting on the lender's response.
Copyright 2010 Richard P. Zaretsky, Esq.
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.
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