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"

Jesse, I hope it doesn't catch on, this is going to be a nightmare, I started doing REO's for OCWEN and I voluntarily stop working for them, too much red tape, people in two different parts of the world communicating with me and telling me different things. I know some agents love them, I thank them for giving me the experience and the opportunity to break into the REO industry, but this is something that I wouldn't do, if they would pay me that just to put a sign, lockbox and mls, then is not bad, you can make money on volume, but a real estate transaction is a very delicate thing, we are dealing with people's money, feelings etc.
In paper is not a bad idea, but in reality this will be frustrating for those agents. dealing with too many people, and keeping track of the transactions, contracts, etc.

Replies

- Edward J Wisniowski > Tony Linton July 12, 2010 at 7:31am
  
  I do BPOs and have listed a few of the properties under the new program, It can be frustrating but a dollar is a dollar and the times being what they are do give us the motivation to bite the bullet. You are expected to recieve contracts and monies in their behalf. You pay utility bills and then seek reimbursement it is possible to expend more than you recieve if the listing lingers. If the property needs attention then the asset manager will deal with it. The service provider will do nothing that is not contracted for like Well & Septic inspections, waiting for gas and water turn ons etc. Lifes not easy in the land of "OZ"
- Jose Rivas (DGRA) CDPE, SFR > Tony Linton February 26, 2010 at 10:42am
  
  You are absolutely right, the liability is greater than the payoff. I wouldn't let any of my agents do this, because it might create an big issue for my company.
Denise Stovall February 26, 2010 at 5:09am

Funny thing...I was just surfing our MLS and found this situation....my first thought was I need to go after the AM and see if they need a REO agent. Boy was I wrong.

This is a unfair deal and not a standard pratice. Certainly time will tell.
Rose Mencia February 25, 2010 at 3:02pm

I believe this will cost them more than working with well trained reo agents...... too much room to fumble, accept unqualified offers, scare buyers.... and for poor repairs.... the sky's the limit....... who will check the checkers...... oh, yeah... and since the average agent is not used to overseeing the entire closing........uh.......... lolololol.....

its like watching a train wreckkkkk.......>>>> with $800.00 passengers........oohh am feeling feisty tonight......
Crystal M. Bush February 25, 2010 at 2:22pm

Who pays for utlities?
- Richard J. Allen > Crystal M. Bush April 27, 2011 at 10:14am
  
  No one. They don't bother to turn them on and don't bother to maintain the properties very well at all as they want to pay the vendors they do have dirt. You get what you pay for.
  
  JMHO.
Jose Rivas (DGRA) CDPE, SFR February 25, 2010 at 1:28pm

Jesse, I hope it doesn't catch on, this is going to be a nightmare, I started doing REO's for OCWEN and I voluntarily stop working for them, too much red tape, people in two different parts of the world communicating with me and telling me different things. I know some agents love them, I thank them for giving me the experience and the opportunity to break into the REO industry, but this is something that I wouldn't do, if they would pay me that just to put a sign, lockbox and mls, then is not bad, you can make money on volume, but a real estate transaction is a very delicate thing, we are dealing with people's money, feelings etc.
In paper is not a bad idea, but in reality this will be frustrating for those agents. dealing with too many people, and keeping track of the transactions, contracts, etc.

Site Maintenance
- Shawn Doran > Jose Rivas (DGRA) CDPE, SFR February 27, 2010 at 2:46am
  
  Jose, like you, I voluntarily stopped working with them for the same reasons. After receiving their most recent email, I know I did the right thing.
Jesus (Jesse) Gonzalez February 25, 2010 at 1:14pm

THE BEST PART.......THEY WILL BE SUCCESSFUL BECAUSE THEY ARE CAPITALIZING ON THE FACT THAT AGENTS WILL DO THIS!

The harsh reality of default is that it's saturated with agents, we got them coming out of the wood work. Because of this saturation it allows compaines to come up with very creative ideas, good ideas and bad ideas. As long as they have an agent who is willing to do it, it will happen.

The next question is, will it catch on...maybe, only time will tell.

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