Tuesday, January 25, 2011

Word for today. "Recovery Score" or how long will it take to close a short sale?

It's a strategic way to prioritize collections and short sale process. I don't completely understand, but it just shows how complicated and hidden the banks can get with the process.

For prime mortgage servicers, GMAC conducted short sales the fastest, averaging roughly six months per transaction. Also, 53% of their dispositions were short sales. It had a recovery score of 59.3.
The next fastest servicer was Citigroup's servicing arm CitiMortgage, which did a short sale in about seven and a half months, and 56% of dispositions were short sales for a recovery score of 54.4.
Third, was Wells Fargo, conducting short sales in roughly eight months for 34% of its total dispositions. It had a higher recovery score than Citi, however, at 55.6.Countrywide, acquired by Bank of America, had the slowest short sale timeline. It took more than 13 months on average to conduct a short sale there. BofA took more than 11 months, but 59% of its dispositions were short sales. BofA had the lowest recovery score at 45.5.
More Info here:
With short sales growing in demand from both distressed borrowers and banks, Deutsche Bank published a "recovery score", examining the speed at which the servicers conducted a short sale and the percentage these transactions take of overall property dispositions over the last year.http://www.housingwire.com/2010/06/23/deutsche-bank-ranks-servicers-on-speed-of-short-sales

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