REO Firm Steps to the Short Sale Starting Line
[Update 1: Adds numbers, strategy] As the US Treasury Department gears up to launch the Home Affordable Foreclosure Alternatives (HAFA) program next month, lenders, tech companies and asset managers are racing to bolster capacity in time. Stepping into the fray, Lenders Asset Management Corp. (LAMCO), a default asset management company that traditionally offered REO services, is getting into the race to secure short sale business. HAFA will launch April 5, 2010 and will provide incentives to servicers to conduct short sales or deeds-in-lieu of foreclosure for borrowers who fail to qualify for the Home Affordable Modification Program (HAMP). LAMCO is planning to use specialized teams of experts to handle the short sale and liquidation process by marketing and selling distressed and bank-owned (REO) properties under HAFA guidelines. According to LAMCO, the efforts will streamline the short sale process, which one broker told HousingWire usually takes six to eight months as the many moving parts of the deal reach an agreement. Under HAFA, a short sale agreement between the buyer, seller, servicer and investor expires after 120 days if the short sale isn’t executed. According to a spokesperson at LAMCO, the company can handle 2,500 short sale transactions per month and will scale toward 10,000 per month as directed by its clients. “In preparation for HAFA, LAMCO has prepared its team of experts as well as its network of established vendors to further enhance the coordination among all parties involved in the short sale process,” said Brandon Hawkes, CEO of LAMCO. HousingWire is joining forces with the Treasury for a Webinar on the HAFA program. Write to Jon Prior.