LPS Looks To Automate Short Sales
If a loan modification doesn't work, the government now requires that servicers offer those borrowers other options before going to foreclosure. One such option is to do a short sale. Seizing on the demand to expedite the short sale process, vendors like Lender Processing Services Inc. are launching new technology and full outsourcing offerings.
LPS has officially started its professional short sale service. Offered through LPS Asset Management Solutions, LPS' short-sale solution helps servicers respond more quickly to short-sale offers and close more transactions. In the current environment, servicers must be prepared to efficiently leverage alternatives like short sales. They must also be able to manage an increase in short sale requests from borrowers and process the increased volume, while minimizing risk exposure and keeping operating complexity to a minimum.
"As the need for shortsale management continues to increase, servicers must have an exceptionally efficient process in place for accuracy, timeliness and high-performance results," said Chad Neel, president of LPS Asset Management Solutions, LPS Field Services and LPS Auction Solutions. LPS Asset Management Solutions has a network of asset managers who manage, market and sell distressed and bank-owned properties, so servicers don't have to experiment with alternatives or create alliances. LPS Asset Management Solutions draws upon related LPS resources, including property preservation and code enforcement services, title and closing services, analytics, valuations, MLS data and market trending data, offers servicers a powerful, comprehensive solution for its short-sale needs.
LPS works directly with its clients to review title; assess and resolve junior liens; review property values against short sale offers; evaluate the equity position for each transaction; perform occupancy checks; and provide property preservation services, if necessary. Also, LPS can coordinate short sale offer reviews to provide guidance on whether the offers are in line with local market values and appropriate for the servicer's objectives. Lastly, LPS can either manage the entire closing process for short sale offers that are accepted, or support servicers with property auction and deed-in-lieu services to expand the choices available to help clients and their borrowers conclude their transactions.