HomeTelos, a Dallas-based firm that develops Web-based solutions to support the management and marketing of real estate assets, says its Loan Exit Option (LEO) program has demonstrated market success as an effective approach in avoiding foreclosure for borrowers, investors, and mortgage servicers.

The company says its LEO pre-foreclosure home sale program is faster and has significantly higher closing rates than traditional short-selling programs by aligning the interests of borrowers, servicers, and other stakeholders to streamline the qualification of properties for pre-foreclosure sale. When qualified, LEO then facilitates property sales through its online marketplace.

Since LEO’s launch last year, listed pre-foreclosure properties have averaged 37 days on market, four offers per property, and sales prices that average 96 percent of list price, HomeTelos said. The company contends that the key to this success is real-time communication between real estate brokers, servicers, and investors, allowing LEO to average only 3 days from buyer’s offer submission to servicer’s acceptance or rejection.

One Florida borrower who found foreclosure relief through HomeTelos’ LEO program commented, “We were getting nowhere, losing our job then our home. We appreciated the quick action in getting our short sale resolved in this market.”

Not only does the system help distressed homeowners avoid foreclosure proceedings, damaged credit ratings, and the threat of lender recourse for loan payment shortfalls, but it offers tangible benefits to loan servicers as well. HomeTelos explained that LEO provides servicers with assurance that the property is widely marketed, that offers represent real market value, and that closing issues are resolved in advance.

According to HomeTelos President Stephen Polley, “LEO’s success is driven by its breakthrough combination of innovative technology and re-engineered workflow processes for achieving the combined critical objectives of servicers, borrowers, and other interested parties.”

HomeTelos’ Loan Exit Option (LEO) system is patent pending.