DRI Tech Facilitates REO Sales Communication
REO asset managers are looking for a more sophisticated listing analysis to make sure properties are valued appropriately.
DRI Management Systems in Newport Beach, Calif., has worked diligently to figure out ways to analyze properties internally to come up with the most accurate price for real estate owned assets, according to Duke Olrich, president and chief executive officer.
"It is very critical to come up with a good price. That means, working with vendors and appraisers you have confidence in. You don't want to chase the market listing," said Mr. Olrich. "Our clients are asking for more sophisticated prices, an accurate number that will sell in a reasonable time frame, within 60 to 90 days. You don't want to be half a step behind the market."
In today's down market, California, Florida, Nevada, Arizona, Ohio and Michigan continue to see large numbers of REO properties. High volumes of loans are going into foreclosure and ultimately into REO, and the values are going backwards. Losses are increasing in these states.
Investing in the right technology can help Realtors and brokers dispose of more REO properties through unique marketing strategies. Technology tools allow asset managers to communicate better with REO brokers, said Mr. Olrich. More importantly, it can help strengthen the offer side of the transaction. With a good approval engine, the real estate broker types the information in, and someone at the asset manager is notified that they have an offer. If necessary, a counter offer may be appropriate or additional approvals may be necessary.
DRI is developing the next generation of default management software, code-named Rincon. Scheduled for 2Q08, this new solution will take advantage of the latest technologies while retaining and building on the functionality of our current suite to provide the most functionally rich and productive tools available.
Rincon uses the Microsoft .NET 3.0 coding framework and some of the latest software design architectures. Service-oriented architecture improves communication with other enterprise systems. After more than 20 years of building and maintaining default software, the company knows that communication with other systems is an integral part of the default process.
The rich functionality and features in the current version of The Default Solution will also be included in Rincon: Financial analyses, online approval routines, document imaging, sophisticated file search routines, payment plan, and property tax and insurance tools. Rincon will also retain the same modules for managing outsourcer interfaces, bankruptcy, foreclosure with attorney interface, REO and asset disposal (remarketing).
A sophisticated listing analysis allows the asset manager to respond quickly to the offer rather than take a loss in this market. Generally, asset managers are allowed to approve offers, which come within 5% of the minimum band amount or they tweak the offer a bit. "With a pre-approved listing strategy, the whole process could take half an hour," said Mr. Olrich.
"Historically, it took days. Asset managers before were not empowered. Once they finally had an offer, they had to go up five levels to the senior vice president. That could take two or three days to make the decision and get back to the buyer. That offer may be gone. They may have found something else better or gotten another approved quickly," he said. "Losing an opportunity in this market costs money."
A quicker response and a more sophisticated listing analysis is a must.
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