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"

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Replies

  • I just saw a report that Ocwen has aquired Litton Loan Servicing. They just aquired Homeq Servicing early this year also. They are really on the roll.
  • Altisource emailed me last week to tell me that they were cancelling the listing on a property... that I closed last year for them! It was a nightmare, too, with an address swap, the homeowner across the street had ownership to the bank's house & the bank had ownership to the rented house across the street. Really horrible, time sucking deal for minimum commission rate.  Obviously the right hand doesn't know what the left hand is doing!

    Trust me when I say... I'll find more productive uses of my time than to deal with their REOs. I think I actually make more money doing CMAs for them than REO or BPO, but then I have to contend with the constant calls from the day I accept the order 'til the time it's turned in, it's just pure harrasment.  They should know based on my track record that they'll get the order from me on time, or usually early.  If they are not sure about other agents, then kick me off the damn system & deal with agents that have performed. I told one of the callers the other day that if he'd quit calling so much, maybe I'd have time to get the order in.

    Wow... I don't know where that rant all came from, but I feel much better now!

  •  

    Altisource listings in my area sell significantly below any other property out there. I talking about 20-25% less. I tried recently to contact my area listing broker and his recorded email states "i have not viewed any of these properties and have no further information other than the mls information" the mls had no public or realtor comments other than the required submission procedures thru altisource. Surely the lenders who utilize altisource have noticed how poorly the assets are managed including lengthy listing periods and very low sales prices-anyone have other experience with altisource listing trends in your area? 

  • I received that communication from altisource too.  Needless to say, I won't list any of their properties. I am continually sickened when some of these companies cut our commission, expect us to do more work, and then smile about it.

     

  •  

    In my area all their listings are with a broker whose office is in Georgia. Utilities off, remarks state buyer has to turn on if they need for inspections. Good luck, I've had buyers that get upset when I suggested that $500 really isn't enough earnest money for a $230,000 property.

    No matter how much we as REO brokers don't like this it is what it is, and what it is in my opinion is a buying opportunity. My emotional response is that I don't want to support a business model that cuts me and my fellow REO brokers out but intellectually I know these properties will sit and eventually sell at bargain prices. Why, because only someone looking for a bargain will deal with the extra work, upfront expense and BS the goes into buying one of these properties. It's like my wife being willing to drive 50 miles to the outlet mall to buy a $500 purse for $200.

    I'm looking to pick up at least one (maybe two) investment property this year. I am also working more with investors so I look for these properties. If I can't make money listing them I'll make money selling them, or buying them myself.

  • Hellow Chris,  I closed a few last yr with alti source and made 800 too.  Do you know how to sign up with CITI with altisource when you call the # is gives 3 promps, CITI, Altisource and another one.  I have called to see how to sign up  for the other two besides alti source and get no where??
  • speaking of liability, I wonder - if the buyers' agent offers the contract directly then the listing agent has no obligation to sign the contract as the listing agent isn't negotiating and doesn't GET the contract. Or at least that's what I think I am reading. If that is true then it seems like there would be no E & O or liability issues as long as the mls data is factual. Any thoughts on this interpretation?
  • In Houston, TX,  altisource listings are listed by a Broker on the MLS and buyers agents are required to send in offers thru their auction website gohoming.com

    You can see what others have offered and its a live auction and the seller or their staff directly negotiate with the offers via emails with the buyers agents. The listing agents role, I suppose is merely listing the homes on the mls for the realtors to see. The gohoming.com has properties listed from all over the US.

    Altisource is , in my opinion, Ocwen, i could be incorrect.

     

  • They try to pay me 1% but in my case they don't do lockbox, trash out or anything. I actually white out the 1% on their addendum and put in 2%. So far after 4 listings, it has worked every time. they hem and haw about it but always give in. So I suggest you try it.
  • The realty is that they want the agent to work for $38.00 doing BPO's promising listings and then the sign goes up with their information.

    Tony, if all we did was put listings in MLS for $800, of course, everyone would think that is good money.  You probably haven't done many REO transactions.....wait until you meet the locksmith, get bids on the properties for repairs, complete a ton of paperwork, visit the property a minimum of once a week to make sure it is secure, handle all the calls, meet buyers at the property, submit offers that don't get approved, sell the property and then a problem arises and the buyer sues everyone in the transaction.  Is that worth $800?  You will do the above and much more, trust me.....not worth $800 to me. For those of you that don't think they are Altisource isn't listing their own properties, click on my attachment!

    DSCN0132.JPG

    https://storage.ning.com/topology/rest/1.0/file/get/4361048451?profile=original
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