Chronos Solutions, a provider of software and services to the real estate and mortgage industries, and its affiliate, RealtyBid, have introduced a new auction service, Trustee Sale Plus, to help sellers in the disposition of foreclosed U.S. Department of Housing and Urban Development (HUD) and Veteran Affairs (VA) properties, as well as nonperforming loan (NPL) sales.
The new offering provides greatly reduced conveyance cost to servicers for claims without conveyance of title (CWCOT) sales nationwide, Chronos claims in a press release.
Trustee Sale Plus diminishes servicers' transaction risk in the event a third party doesn't purchase a property at the courthouse auction, Chronos says. Not only does the RealtyBid auction platform let sellers immediately enter into a ‘second chance’ online auction if a property doesn't sell, it also offers RealtyBid's ‘plus’ title curative and homeowners association (HOA)/condo lien identification and resolution service. These are collectively called ConveyancePrep and are available to support any servicer or institutional investor with assets in need of conveyance or marketable title assistance.
Chronos Solutions also provides eviction management for an additional fee.
‘The title curative process can be expensive, and many servicers simply aren't set up to do it,’ says Matt Martin, CEO and co-founder of Chronos Solutions, formerly Matt Martin Real Estate.
Martin points out that a number of other realities routinely make the process cumbersome for servicers.
‘Some foreclosure attorneys fail to cure title completely, leading to costs and delays,’ he says. ‘HUD requires any HOA obligations, such as liens and fees, to be current at the time of conveyance, but identifying those obligations can be a major challenge. Also, if a property isn't conveyed in a timely manner, the resulting fees and penalties can be massive and cost-prohibitive for the servicer.’
Overall, the conveyance process is not a simple one, Martin says.
‘There are significant time and cost savings for a servicer by allowing a trusted third-party provider such as Chronos to manage its auction programs through a product like Trustee Sale Plus,’ he says. ‘We are aware of no other service program in the industry that overcomes the inherent challenges as comprehensively.’