Short-sale platform can prevent property 'flopping'

A software platform that allows mortgage servicers to receive all offers submitted on a short-sale property directly from buyers' agents has won an award for Release of the Year from Mortgage Technology magazine.

The Release of the Year award, one of 12 mortgage tech awards given out by the magazine in 2012, recognizes a new software, platform, alliance or initiative that is expected to have the broadest future impact on the mortgage industry.

VerifiedShortSale, a Web-based platform from Southfield, Mich.-based Woodward Asset Capital, launched in April 2011. The platform delivers every short-sale offer to all parties in real time, ensuring lenders see all offers, not just those listing agents or sellers want them to see.

"Woodward's technology closes the gaps between mortgage servicers and the real estate marketplace by providing information about distressed assets that can help address uncertainty about property valuations and proactively deal with potential instances of fraud in the short-sale process," Mortgage Technology magazine said in announcing the awards.

Lenders that don't employ preventative measures may be vulnerable to short-sale "flopping" schemes in which real estate agents help investors obtain distressed properties at deflated prices.

Woodward says VerifiedShortSale also prevents delays by allowing lenders to approve sale terms before a buyer and a seller execute a binding contract that may not meet the bank's requirements.

VerifiedShortSale is based on Woodward's first product, OfferSubmission, a platform for real estate owned (REO) properties released in 2009. In 2013, Woodward plans to roll out Purchase Pipeline, a Web-based acquisition and transaction management system for institutional investors, real estate investment trusts (REITs), hedge funds and REO-to-rental firms.

Mortgage Technology also named Woodward to its 2012 list of the top 50 service providers in the mortgage tech industry.

Equifax's Verification Services Platform and loan origination system LendingQB were included as honorable mentions for the Release of the Year award.