With seven out of 10 delinquent borrowers nationwide not enrolled in or actively seeking any type of work-out program if they are facing foreclosure, the Short Sale Specialist Network has started a program to try to reduce this statistic.
The mission of “Bridging the Gap” is to assist homeowners in financial hardship to take action through a short sale rather than allowing their home to go into foreclosure.
Through the program, participating lenders send delinquent borrowers’ information to the SSSN. The SSSN then assigns the referral to a local short sale agent who will contact the borrower through a direct mail campaign, including two visits by an agent to the subject property with borrower incentive letters. Once the borrower responds positively to the promotion, the traditional short sale process can commence.
Borrowers are not charged any money to use the program. Conversely, they are offered $2,000 to $10,000 to participate.
“Bridging the Gap reaches out to borrowers who would not seek assistance on their own, aiming to dramatically alter that disturbing statistic for the better,” said Mike Linkenauger, director of operations for the program.
The borrower outreach program is also a free initiative for servicers. By participating in the program, servicers have infinite usage of the web-based tracking portal, verifying the occupancy of the property through an agent, preparing the short sale solicitation letter, gathering financial information from the agent and having unlimited direct consultation with the borrower.
As part of the program, Realtor partners will perform the traditional duties of an agent, including listing the property for sale on the multiple listing service and other real estate websites, general marketing of the property, negotiating and presenting offers, coordinating repairs and closing. In addition, the local agent will gather all required financial documents in order to process the short sale of the property.
The SSSN utilizes over 6,000 experienced and trained real estate agents who have all closed an average of 50 short sales in this program.
