August 2011

Major Lenders Offering Perks on Short Sales

The nation’s leading mortgage lenders are extending extras for short sale transactions employed as an alternative to foreclosure – both in the form of monetary incentives for borrowers and streamlined procedures for real estate agents.

Wells Fargo says it has been making “enhanced financial relocation assistance offers” that can be as much as $10,000 or $20,000 to certain borrowers who choose to go through with a short sale or transfer the title back to Wells via a deed-in-lieu.

This extra incentive is being offered to distressed borrowers in Florida and other states where the foreclosure process is lengthening, a spokesperson for Wells Fargo explained. The exact amount of the relocation funds provided to individual borrowers varies based on a number of factors, the company says.

Wells Fargo noted that this type of additional relocation assistance is only available on first-lien loans that the company itself owns – which represent only about 20 percent of the loans Wells Fargo services. The company must follow investor guidelines for the remaining loans it services.

JPMorgan Chase is also offering a range of incentives to borrowers that agree to a pre-foreclosure sale “because if we can’t work out a modification, a short sale is a better result for the borrower, the servicer, the investor, and the neighborhood than a foreclosure,” the company said in a statement.

Chase says the amount of the offer “depends on a number of factors” but declined to share specific details on how much money it’s been providing to short sellers.

One agent in Florida confirms that he has indeed received a letter from Chase offering $20,000 to a borrower he’s representing in a short sale transaction.

Another agent in California says he closed a short sale with Chase where the borrower was paid $30,000 at closing for cooperating with the short sale.

“I have closed over 200 short sales and this was the most I have seen paid to a borrower,” the agent said.

Citi has confirmed that its average incentive offer is currently $12,000 for borrowers in cases where Citi owns the loan.

“Incentives are offered to customers experiencing financial hardship who need funds to proceed with the short sale,” a spokesman for the lender explained.

The amount, which is agreed upon upfront, varies according to the borrower’s individual circumstances and loan characteristics, Citi said. It is disbursed to the homeowner when the short sale is completed.

Bank of America says it is “committed to improving the short sale process” and has made procedural changes to cut some of the red tape for agents working with the bank on pre-foreclosure sales.

The lender now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale.

This means that agents no longer have to initiate a new short sale if the buyer changes, Bank of America explained. Instead, agents can move ahead with the original transaction in the Equator system, BofA’s short sale technology platform of choice, and continue to work with the same short sale specialist.

Bank of America says this policy change will save its agents time by not having to repeat a number of process steps.

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New Product Streamlines Short Sale Process for Real Estate Professionals

Denver-based Realis Real Estate Software (formerly REO Maestro) is launching a new software product for agents and brokers working with short sales.

The new program, Prelude, is designed to allow real estate professionals to manage multiple short sale properties efficiently and effectively.

“Prelude is both simple and elaborate, offering an easy-to-use software that incorporates all of the needs of the agent while being scalable to any size company without the confusing bells and whistles,” said Lauren Roberts, veteran REO agent and founder of Realis Real Estate Software.

Prelude will be available as a separate software platform and as an extension of Maestro, Realis’ flagship product.

The product includes a forms library, auto package generation, and borrower access.

The Backstage component of the program allows lenders, venders, and homeowners access to Prelude’s task management system.

“The volume levels continue to remain steady and in most cases are increasing as a result of the economy and housing market,” said Roberts. “But, agents and brokers must continue to be mindful of their profit margins, which are historically slim when specializing in REO and Short Sale management.”

“Agents and brokers must work smart, carefully controlling the growth of their administrative teams, while continuing to exceed the needs of their clients,” Roberts says. “This makes having a software platform that can streamline their workflow more critical to their bottom line than ever before.”

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The EIGHT Best Ways to Protect Smartphones

Have you ever received repeated cell phone calls from an unknown number? Or opened a text message offering an update to a phone app you don’t even use? These are just a few of the situations that should raise security red flags. The following tips will help you keep your personal information safe and dodge traps set by clever hackers.

When using social networking sites from your phone, skip the native apps – which know far more about your life than web browsers ever could – and access the sites through your phone’s browser. Also, use a password-protected screen lock to keep your phone secure.

Beware the false “update” link for apps! Verify the link you’re using to download an app before you click on it, or go directly to the company’s site to download the update. Sending fraudulent “update” links is a common method for directing users to sites where personal information can be compromised.

Clean up your apps regularly, removing those you don’t use. Some apps may be able to monitor and access various types of data on your phone, including your contact list. And if your phone has a SIM card, set a PIN code for the card — if the phone is ever lost, nobody can use the card.

Read the reviews of apps before you download, and choose reputable apps. Apps without many reviews and those that have been recently uploaded to the app market or app store are more likely to contain privacy and security problems.

Don’t trust Bluetooth! If you use a hands-free device to make cell phone calls, always use a wired headset. Bluetooth devices can be compromised and your personal data can be accessed or corrupted. If you do use Bluetooth, protect the connection with a longer, more secure password instead of a short PIN.

Watch out for apps that ask for too many permissions – if you’re installing a calculator app and it requests Internet and contacts permissions, that’s a bad sign. One way cyber-thieves exploit smart phones is by creating a good app with some extra code and overreaching permissions.

Log out of all Web services every time you’re finishing using them, or you may stay logged in indefinitely – even to sensitive sites like banking and email. On desktops, there’s a timeout period if you remain inactive, but not always with mobile access. If the phone is lost, anyone can access the sites you’re logged into.

Think twice before answering calls or text messages from unknown numbers, especially if you’ve received a call more than once. Phishing scams are often initiated through cell phone calls or texts. Google the phone number that’s calling you, and see if anyone has reported it as linked to a scam.