Short sales and foreclosures accounted for about 25% of home sales in the past three years, according to Carrington Property Services.
As a result, Carrington Property Services, a division of Carrington Mortgage Holdings, announced the creation of Carrington Property Network to provide training and support for its members who participate in this segment of the market.
CPN will serve as a network for brokerage firms focused on real-estate owned sales to increase business by participating in the property market and connecting with institutional investors.
"Our objective is to complement the traditional resale and relocation services currently provided by residential brokerage companies with best-in-class institutional real estate services," said president Michael Harris of Carrington Property Services.
He added, "We also intend to work closely with our CPN brokers to extend the offer of these services to our customers who have need for local and regional real estate professionals to help them effectively and efficiently dispose of their inventory."
Desirée Patno, president of the National Association of Women REO Brokerage, said there are already various REO-type brokerage networks available and that Carrington is adding to the mix by launching CPN.
"The default servicing landscape is changing with compliance issues, type of in-depth services required, and a need for experienced companies to overcome the challenges – I am not surprised," she said.
Patno added, "A parent company with multiple subsidiaries offering a one-stop shop in the industry can offer greater flexibility for the clients, but checks and balances need to be heavily monitored."
In order for a firm to be selected by Carrington, the firm must rank within the top five of their market in regards to transactions and sales volumes while also possessing the right infrastructure to handle the business.
Members of CPN will have access to various amenities including short sale leads, investor buyers, property management, REO listings and broker's price opinion services.
The first brokerage firm to sign on with CPN is St. Louis-based Prudential Select Properties. The firm expects the network to help with its business expansion.
"We believe that partnering with Carrington will open doors for us in the institutional real estate market, and allow us to build on our already-strong residential brand," said president and CEO George Bruns of Prudential Select Properties.