Altisource 1%

I hope this is not a new thing that other companies will continue to use. I receive this email from Altisource today and they are taking the listing agent out of the transaction and having the buyer's agent submit offer directly to them.

Here is the email, happy readings:

"Altisource Portfolio Solutions, Inc. (“Altisource”) is continually searching for new ways to innovate, improve and accelerate the REO disposition process through the leveraging of automation and by providing enhanced services to its clients, customers and trade partners.

2010 will kick off several new Altisource initiatives, including:

Significant enhancements to the Altisourcehomes.com website that incorporate upgraded search capability, functionality and the introduction of time limit sales.

The development of a nationwide network of vendors, managed by the Altisource Property Preservation and Inspection team (“PPI”) to administer the property management process.

Due to this innovation several changes to our REO sales process have occurred:

All offers must be submitted directly by the Buyer or Buyer’s Agent via the Altisourcehomes.com website.

Communication of offer acceptance or counter offer(s) will be delivered electronically via the online portal.

Contract submission and processing will be handled electronically via direct support of the Altisource operations team.

Coordination of additional closing duties will be performed by our title services team.

Rehabilitation, management and maintenance duties will now be completed by our PPI team. These include:

Cash for relocation negotiation (cash for keys)

Eviction oversight

Lockbox installation (independent of MLS lockbox)

Repair management

Supervision of routine maintenance

If you are interested in assisting Altisource with REO preservation duties you will need to apply for PPI vendor status by registering on www.realtrans.com.

The transfer of property management and other tasks from the listing agent to Altisource has necessitated an adjustment of the listing commission structure, which will be reflected in new listing agreements beginning March 1, 2010. The listing commission, net of referral arrangement fees payable by the listing agent to the referring licensed brokerage companies, will be a flat fee of $800 for properties with a sale price less than $80,000 and 1% of sales price for all other properties. These changes will not impact the commission payable to any buyer’s agents. There will no longer be a property management fee paid to listing agents. These changes will not alter any properties currently under contract or on the market pursuant to previously executed listing agreements.

Altisource would like to thank you for your continued hard work and effort. We look forward to an ongoing, successful business relationship. Attached you will find FAQ’s to provide detailed answers to your questions. If you have additional questions or concerns, please email RLA@altisource.com.

Thank you.

AltisourceHomes"

OK I am starting to research this and as part of it I logged in here to see what has already been said or is known. But altisource is indeed going further than the fee given listing agents as mentioned above and I am not sure they can do this within the rules but they are doing this in Tennessee. To cut the listing agent out and save all that side for them they now have bought memberships to MLS thruout my state and they have 1 person as "altisource" entering all there listings directly into the mls regardless of where they are in the state for instance the altisource rep is in Memphis but handles all listing entries thruout the entire state even 6 hours away on the other side of the state. They are using pictures submitted by there re-key ppi vendor and all offers are submitted directly on-line(so they get both sides the sale) or on-line by a buyers agent(so they only pay a reduced 1 side fee). This in effect cuts out all REO Listing agents. In my state on there web site they have 50 listings this way that are active. The mls under instructions tells the buyers agent this is the combo code show at will and submit all offers at website. Now as an REO Agent - this is all I do is the REO side that's my entire focus and lately with the reduced fees added cost to list I am starving business wise but now they want to make it not just where I am starved but where we as REO list agents are no longer existing? Any ides or thoughts on this from those of you here? And recently here on thiks site I read an article that altisource has set up several deals recently to get a larger share of listings sent to them vs other sources. Look in your MLS system agent roster and search altisource the read the info for that office in my entire state its 1 person directly with altisource and further than that they have out sourced to overseas. i have 1 listing still with them in the pipeline and this is why it dried up the pipeline. I was still getting the BPO like it was alisting but no listing - they were useing my local Knowledge to price there properties. The one listing I have left with them I have to email an AM over seas and its very hard to get him to understand anything I say - he understands the English but dose not comprehend its meaning is the best way I can put it. They are even taking a larger slice of the PPi pie as they have Real Home Solutions located in Florida handling there reo utilities and upkeep of things they use to have the REO agent handle and front under there property management fee.

Replies

Alina February 27, 2011 at 2:07pm

In Illinois they only use there altisource contact. I don't bother with altisource ever again. They are really terrible, and I wonder on the buyers end if they do the same. I would never want to work for them ever. I never want to show any of my clients too, since how they treat realtors as trash. period.
Brian Rippley January 24, 2011 at 12:41pm

Here is a good one...here in Colorado, ALL Altisource properties are listed by one agent. The kicker is, he is located in FLORIDA!!! There are several multiple listing service's in Colorado, based off of geographic local, and he only lists them in the Denver Metro MLS.

I have completed dozens of BPO's for Ocwen/Altisource in the hopes of earning listing privileges. Once I discovered Altisource contracts one listing agent for all of their listings I obviously stopped doing the ground work for this agent. If all of the Colorado agents would follow suit and stop doing BPOs for Altisource until they open up their listings to qualified, "local" agents, maybe then they will change their absurd policy. Is it really worth the $40-$60 one gets paid for a BPO and then to get a flat 1% on the listing?
- John Bacon > Brian Rippley February 27, 2011 at 12:48pm
  
  Sounds like Quality Control went out the window with Ocwen/Altisource... I sure hope their investors/clients understand they just lost 10% or more of a properties market value to save 2% that probably isn't even being passed on to the investor.. If you want to make a stink, I'd start contacting their investors/clients. I can't imagine they would be okay with longer DOM and a larger loss on the asset. Their model is very broken and short sighted if you ask me.
Claudio Leiter January 24, 2011 at 6:59am

I when to the MLS and placed the name Alntisource int the selling agent's name box, and 40 listings in my area (Miami Florida) showed up belonging to Atlantic & Pacific RE. Is Altisource and Atlantic & Pacific the same company?

Thank you
Vanessa Calhoun January 24, 2011 at 5:01am

I came across an Altisource listing in my local MLS. The listing agent is located approximately 1.5 hours from the listing and the interior photos were taken "pre-trashout". They're absolutely horrible to say the least. I'm in an area in which properties that appear poorly in the MLS will NOT generate a full price offer. You won't have to put up with a bidding war or any thing else of that nature. Buyers in my area are used to seeing clean and "market ready" properties (as they should be) and this is what they've come to expect. So, what does this REALLY mean to Altisource???? Funky property condition + inadequate marketing (yes, we MUST market properties outside of the MLS as well in my area) = lower sales price...

In our area, HUD has now began to offer the listing agents 3% in exchange for greater responsiblity of actually marketing the property. There has never been (nor will there ever be) a viable replacement for excellent marketing techniques used for good products.
Roseanne Finocchiaro October 18, 2010 at 1:29pm

I just showed a Altisourcehomes listing. I hope to never run across one again! When I called the (1) agent for 256 listings, I got a message telling me that he would call back, but he gets 150 messages a day. UGH! Then you bid online for the property. Any buyer can do the same thing, and do it without an agent. They also charge a 2% bidding fee to the buyer. THe buyer is required to turn on utilities for an inspection. When I went to their website, the property was gone, but still on the MLS. Not sure when it actually got accepted, BECAUSE I cant get a listing agent to call me back. This is crazy, and and is not fair to my buyers that want answers about the status of the property. A sad note to this, the house had furniture, kids toys, and trophies. I thought it was strange that after 11 days on the marke, they hadnt cleaned out the house. I had noticed the name of the previous owner. The owner was a high school friend of mine that died last year of cancer. His family suffered a terrible hardship. It really got to me, and I wish I could talk to the listing agent to ask him why his belongings were still in the house. Again, he cant get back to me since he has 150 calls a day. UHG!
- Edward J Wisniowski > Roseanne Finocchiaro October 18, 2010 at 2:12pm
  
  I can feel your pain. These people are all about the money. They have very little loyalty and seem to me to be users. Good luck with your offer. Cheers...
TR Lawrence September 16, 2010 at 4:14pm

OK I am starting to research this and as part of it I logged in here to see what has already been said or is known. But altisource is indeed going further than the fee given listing agents as mentioned above and I am not sure they can do this within the rules but they are doing this in Tennessee. To cut the listing agent out and save all that side for them they now have bought memberships to MLS thruout my state and they have 1 person as "altisource" entering all there listings directly into the mls regardless of where they are in the state for instance the altisource rep is in Memphis but handles all listing entries thruout the entire state even 6 hours away on the other side of the state. They are using pictures submitted by there re-key ppi vendor and all offers are submitted directly on-line(so they get both sides the sale) or on-line by a buyers agent(so they only pay a reduced 1 side fee). This in effect cuts out all REO Listing agents. In my state on there web site they have 50 listings this way that are active. The mls under instructions tells the buyers agent this is the combo code show at will and submit all offers at website. Now as an REO Agent - this is all I do is the REO side that's my entire focus and lately with the reduced fees added cost to list I am starving business wise but now they want to make it not just where I am starved but where we as REO list agents are no longer existing? Any ides or thoughts on this from those of you here? And recently here on thiks site I read an article that altisource has set up several deals recently to get a larger share of listings sent to them vs other sources. Look in your MLS system agent roster and search altisource the read the info for that office in my entire state its 1 person directly with altisource and further than that they have out sourced to overseas. i have 1 listing still with them in the pipeline and this is why it dried up the pipeline. I was still getting the BPO like it was alisting but no listing - they were useing my local Knowledge to price there properties. The one listing I have left with them I have to email an AM over seas and its very hard to get him to understand anything I say - he understands the English but dose not comprehend its meaning is the best way I can put it. They are even taking a larger slice of the PPi pie as they have Real Home Solutions located in Florida handling there reo utilities and upkeep of things they use to have the REO agent handle and front under there property management fee.
- Richard J. Allen > TR Lawrence September 17, 2010 at 3:11am
  
  TR just hit the nail on the head. Altisource does not use listing agents, they have one guy in my area (California) that does all the listings for them. Properties are dirty, have access problems, don't have utilities on, use combo boxes instead of Supra and sit on the market for much longer than my REO listings. Ocwen makes more money but the investors lose BIG time!
  - Frank Cobb > Richard J. Allen September 17, 2010 at 5:51am
    
    HUD started this practice and I think we can assume it will continue, for a while.

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