Property management firm LRC Asset Management, which is majority-owned by Loan Resolution Corp., rolled out a program to catch fraudulent activities that surface on the default servicing side of the business while speeding up REO timelines to less than 180 days, the company said.
The program, RealtyRecon, has the ability to determine occupancy for REO properties.
"The amount of fraud in REO and short sales is staggering," said Travis Hamel Olsen, co-president of Loan Resolution Corporation.
"RealtyRecon virtually eliminates all fraudulent repair claims by agents and contractors, and those tricky pocket-investors that agents sometimes work with, so we can get the owner of the mortgage the full return they deserve."
The system aims to lower the number of code violations associated with properties by running occupation verifications and weekly inspections.
RealtyRecon agents visit the homes weekly to provide timely reports and photos of the properties for evidence.
"Our clients have been asking for this resource since the market crashed," added Olsen. "It’s time for bogus repair claims and fraudulent agents to go the way of the dinosaurs."