A Consented Sale™ is an “enhanced” agreement between all requisite stakeholders, the most important being the lender/servicer, of a residential or commercial property for less than what the owner still owes on the mortgage.
A Consented Sale™ is a beneficial alternative to foreclosure when a homeowner needs to sell and can no longer afford to make their mortgage payments. The lender agrees to accept less than the amount owed to pay off a loan now rather than taking the property back by foreclosure and trying to sell it later. Lenders agree to a Consented Sale™ because they believe it will net them more money than going forward with a lengthy and costly foreclosure process.
Consented Sale™ Core Benefits
A Consented Sale™ is an “enhanced” short sale and BK Global™ is able to obtain pre-consent by utilizing its proprietary BK Score™ system that analyzes and provides lenders an immediate evaluation of the value of the property and its probability for sale.
In addition, BK Global™ is able to agree with lenders/servicers on a strike price for each property, and utilize its national BKGlistings.com marketplace for listings and online offer management platform.
Beneficial to the Bankruptcy Estate
Lenders/servicers will generally provide BK Global with a pre-approved strike price for the Consented Sale™. The strike price provides brokers and agents with a baseline value from which to set sales pricing. All proceeds, less broker commissions and a carve-out for professionals and unsecured creditors, are to the benefit of the estate. The Consented Sale™ benefits both secured- and unsecured-creditors.
Better Than Foreclosure for Debtor
Consented Sale™ makes more sense than foreclosure. In general, when a debtor wants to obtain a loan to purchase a property in the future, more opportunities will be available to him or her if he or she conducts a Consented Sale™ through the bankruptcy process. And, contrary to popular belief, a debtor can be current on his or her payments and still qualify for a Consented Sale™. In fact, if a debtor is current on his or her mortgage through a Consented Sale™, he or she can qualify for an FHA loan afterward without any waiting period(s). The same option would be unavailable following a foreclosure.
A Much Shorter Process
BK Global® shortens the average time of a Consented Sale™ by obtaining lender pre-approvals, which streamlines the process. Its expert negotiators have existing relationships with all servicers, with clear requirements to reduce the standard average time it takes to complete a Consented Sale™. The average Consented Sale™ takes approximately three-to-four months from the acceptance of an offer to a completed purchase.
Powerful Marketing Generating Competition
BK Global markets all assets on the largest bankruptcy listing services marketplace in the United States, BKGlistings.com (BLS), around-the-clock. The national exposure and syndication — and the ability for buyers to submit offers direct online -- ensures the most effective marketplace for disposition of assets. BLS’ advanced technology platform allows buyers and sellers to connect interactively to manage multiple offers, as well as accept or reject them.
Beneficial to Lenders
Lenders agree to a Consented Sale™ because they believe it will net them more money than winding through the lengthy, costly and complicated foreclosure process.
No Cost for Trustee
BK Global is responsible for all costs involved in a Consented Sale™, including title and property insurance, as well as filing fees related to motions to allow the sale of property (if any).