Short Sale Gets Special Attention in National Default Servicing Conference

Under a dark cloud of record-breaking foreclosure rates, real estate lenders, servicers and brokers met with loss mitigation experts to discuss short sales as one of the more effective ways in preventing the dreaded foreclosure.

Woodland Hills, CA (PRWEB) October 20, 2007 -- Under a dark cloud of record-breaking foreclosure rates, real estate lenders, servicers and brokers met with loss mitigation experts to discuss short sales as one of the more effective ways in preventing the dreaded foreclosure. The panel took place at the fourth Annual Five Star Default Servicing conference in Dallas, Texas. The conference was successful at bringing together professionals from various mortgage lending and default servicing divisions, all aimed with the goal of enhancing the effectiveness of default services, and bringing to light the current issues and potential resolutions in the field of real estate.

Eli Tene, president of I Short Sale, Inc. (ishortsale.com,) a leading short sale negotiation company for borrowers and agents, was one of the specialists who led the panel that focused on the effectiveness of short sale as a loss mitigation tool. "In this tumultuous time, education is paramount. This conference absolutely facilitated this need and gave thousands of industry professionals access into loss mitigation methods that work."

This year, the Five Star Default Servicing conference was under a dark cloud of record-breaking national foreclosure rates, and a sky rocketing inventory of unsold homes. According to Amy Crew Cutts, deputy chief economist for Freddie Mac and a keynote speaker at the Five Star Conference, "economic indicators suggest the U.S. has a 50 percent chance of experiencing a significant recession within the next six months… with the financial markets creating a lot of trouble for mortgage borrowers...the risk of recession is quite high." Foreclosures have been rising nationwide for over a year. In California, for instance, there was a 300 percent increase in August 2007 alone. Home prices have been declining significantly, leaving some homeowners owing more than their house is actually worth; this has caused a nationwide alarm.

Predictably, foreclosure prevention was one of the "hot topics" in the conference this year. Tene, who has negotiated thousands of short sales throughout the past 19 years of his career, discussed the advantages of short sales and the best methods of completing these complex transactions. Tene also answered a myriad of questions from eager participants, providing much sought after insight into a seemingly superior foreclosure prevention method.    

A short sale, in essence, allows a lender and borrower to reach an agreement where the property owner is able to sell their house for less than its current debt. Through I Short Sale, Inc. (ishortsale.com), Tene is creating an open discussion for loss mitigation, proving that short sale is the best solution for lenders and property owners and an efficient method to revive the current state of real estate. "There is a need for lenders to be more proactive toward loss mitigation in general, and short sale, specifically," says Tene. "Often times, a lender and a borrower become static, with no compromise at hand. I Short Sale understands the goal of the lender as well as the position of the borrower. This allows for a smooth transaction that aims for a win win scenario."

By choosing to foreclose on a borrower, a lender might pay up to $50,000, or an additional 20% of the home's value, in mounting legal fees, Real Estate Owned preservation costs, and having to market the property for sale. The advantage of a short sale is that it helps alleviate a problematic property with minimum out of pocket expenditures. In a short sale, as opposed to a foreclosure, the property owner is most often the initiator; aiming to create more financial options and putting some control back in their hands. Tene, through I Short Sale, Inc., has proven how saving time, money, and energy is achievable in the current market crisis.

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