DepotPoint and AssetPlanUSA Partner to Enable Short Sales

The U.S. government is encouraging short sales as a solution to the nation's still-growing foreclosure crisis, but insight from industry players indicates that borrowers and lenders alike are having trouble executing short sale transactions.

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To help lenders and servicers educate troubled borrowers on the benefits of opting for a short sale and help them successfully pursue this foreclosure alternative, ""DepotPoint"":http://www.DepotPoint.com, a provider of default management workflow solutions headquartered in Bellevue, Washington, and ""AssetPlanUSA"":http://www.AssetPlanUSA.com, a nationwide provider of foreclosure alternative solutions based in Long Beach, California have joined forces.

Through this partnership, AssetPlanUSA says it plans to use DepotPoint's technology to help its lender/servicer clients and their borrowers effectively achieve short sales. The company explained that DepotPoint's TrackPoint platform incorporates an enterprise-class, web-based workflow engine and tracking system for managing default transactions, including short sales.

Starting on April 5, 2010, the administration will begin providing incentives to servicers who help borrowers facing foreclosure exit their homes gracefully outside the foreclosure process, thereby lessening the negative impact on the borrower's credit score compared to a foreclosure.

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The government's ""Home Affordable Foreclosure Alternatives"":http://www.treas.gov/press/releases/docs/05142009FactSheet-MakingHomesAffordable.pdf (HAFA) program provides relocation assistance for borrowers choosing foreclosure alternatives, allows borrowers to receive pre-approved short sale terms before listing their property, and pays servicers cash incentives to cover administration and processing costs.

But according to DepotPoint and AssetPlanUSA, many financial institutions are not adequately set up to approve short sales in a timely fashion, leading to a very low success rate for short sales to date.

""Our nation is in the midst of a distressed property crisis affecting millions of Americans, and we must act swiftly and creatively to either help keep people in their homes or support a homeownership exit outside the foreclosure process,"" said Joe Filoseta, president and CEO of DepotPoint. ""It will take integrated teamwork and relationships like the one we have forged with AssetPlanUSA to have a real impact on this crisis. AssetPlanUSA's management team has extraordinary experience with short sales and working with troubled borrowers to find alternatives to foreclosure.""

AssetPlanUSA is led by president and CEO Rayman Mathoda, former EVP and chief people & efficiency officer with IndyMac Bank.

""In evaluating technology solutions, we focused on the quality and caliber of the leadership, the business logic, and workflow of the technology, as well as the flexibility and speed of the team and company in adapting their solution to the needs of AssetPlanUSA and its clients,"" Mathoda said. ""DepotPoint emerged as a clear winner for us, and because they host their TrackPoint solution, it can be implemented in no time. We are looking forward to a long and fruitful relationship, as we help borrowers and financial institutions achieve optimal outcomes in the relatively new and fast evolving short sale market.""