Buyers, sellers and specialists will be happy to know that major players in the short sale process are taking steps to make their systems more efficient. For example, PennyMac Financial Servicers announced in June that their home loan division has implemented an automated program to shorten the timeline for pre-foreclosure sales. According to the company’s director, a short sale really shouldn’t take any longer than a traditional home sale. Now that these transactions are so common, lenders do need to make them part of “business as usual”.
Software Comes to the Rescue
The solution PMAC chose is provided by Quandis. This platform facilitates communication between the borrower, the servicer and the real estate specialist. It provides step-by-step instructions to build and submit the required short sale package. It can handle a variety of workflows including those deigned for compliance with government programs such as HAFA. Because the system is automated, there’s less likelihood of paperwork or communication falling through the cracks. It even saves time on phone calls since the servicer can generate and email status reports to the listing specialist and borrower. A risk analysis tool is included to help financial institutions make smarter choices about their short sale policies and processes.
Broad Changes in the Works?
It’s common knowledge that loan servicing companies don’t particularly care whether their process is time consuming for real estate specialists or homeowners. But the Quandis platform and similar products focus on saving time and resources for the servicer. Faster, more efficient short sales mean less lost revenue and less administrative overhead. So, these solutions are likely to be adopted on a wide scale across the industry.
This trend toward efficiency is definitely catching on. Earlier this year, Freddie Mac revealed five ways that they now help make short sales easier. For example, the mortgage company has expanded the list of allowable financial hardships so that more homeowners can qualify. They certainly wouldn’t do this if they felt that short sales would continue to be difficult to manage. Fannie May has an accelerated resolution tool that borrowers and real estate specialists can use if their transaction runs into some speed bumps. Of course, if these obstacles are the result of poor preparation on the part of the homeowner, things are going to slow down no matter what. That’s why communication between the seller and their real estate specialist will always be critical for fast-tracking any short sale.