There are so many great things to say about the Loan Exit Option program, I don't know where to begin. So I will start from the beginning. Traditional short sales on average take 60 days before a negotiator is assigned to the file. Then an additional 60 days and multiple BPO's before an approval is rendered. By this time buyers are frustrated, sellers are discouraged and the property may or may not be on the chopping block to be sold on the court house steps. Good luck trying to get it postponed if you haven't been assigned a negotiator, and in some cases even when a negotiator is assigned to the property it can often times still end up being foreclosed.
This is all too common and often the reason for the bad taste and feelings that many Realtors and Homeowners associate with the word Short Sale. (Nothing Short about it!)
The Hometelos LEO program is by far the most effective, systematized, well organized (And in our opinion the only way should be sold.) On average, within 10 days of initial assignment the listing is placed Active on the MLS with a conditional Settlement Letter on file. I'm 100% positive that the combination of our extensive marketing campaign combined with the ability to market the listing as a PRE-APPROVED Short Sale ensures a WIN-WIN situation!
Due to the amazing shape the listings are left in the majority of homes are all able to qualify for buyers with FHA financing!
(Part of the home owner's responsibility for participation in the program is that the property must be in marketable condition.)
The incentive to the owner is they are being allowed to short sale their property instead of having it foreclosed (savings the bank thousands of dollars in fees that would be spent to foreclose, clean, maintain and evict, as well as, several thousand in declining home values that vacant homes are prone to.), and in cases when they are living in the property, they will be given a settlement for relocation upon sale. In a CFK situation the previous owner is given money regardless of the sale of the home, as long as it is left in broom swept condition.
Unfortunately many REO (Bank Owned) properties will not qualify for FHA financing due to their inferior condition, and this results in properties selling for lower than what that would if they were in better condition. This is great for investors, and cash buyers that can make improvements, but terrible for comparable values and fist time FHA home buyers.
As an experienced Realtor/REO Bank Owned/ Foreclosure Investor, I can honestly say LEO will play a critical role and play a large part to bringing about stabilization and appreciating housing values across the nation. I don't know, nor have I heard of any other operation doing what we have already done with Hometelos LEO. I'm looking forward to our recovery as we approach 2010 with Hometelos Leo on the forefront.
Lenders, Banks, Loss Mitigators, if you haven't got on the shuttle, you should hurry as we are counting down for take off.. 10,9,8- BLAST OFF