Software navigates alternatives to foreclosure

What: DepotPoint, Bellevue

Who: Joe Filoseta, 57, president and CEO

Mission: Help manage the handling of nonperforming residential loans and exploring options other than foreclosure.

Employees: 32

Financials: The privately funded company collects a $10 fee on each file and receives $100 when each transaction is completed. The company projects profitability in the third quarter.

Neighborhood watch: Filoseta said that in a "normal" year there can be about 1.8 million foreclosures, and recently the total is "heading toward 5 million." Such occurrences are devastating for all involved. "A foreclosure damages the credit of the borrower and causes a greater loss for the lender, but also pulls down the property values of the neighbors ... ," he said. "With other alternatives like a short sale, the house is never empty and is immediately occupied by another homeowner."

Best path: Most homeowners in distress are aware of short sales and don't need DepotPoint to manage that option, but Filoseta said his software can streamline the process. "Short sales are very time-sensitive and manage data from a variety of sources," he said. "To have all this data in a single electronic file can save a lot of time and money, and it makes everything less complicated if the process is controlled by technology."

House proud: Other alternatives include the suspension of mortgage payments for a few months to allow a borrower to recover, or a repayment plan that allows the borrower a certain time period to make up missed payments. "There are reasons why someone misses a few payments; they may have lost their job or faced a medical emergency," Filoseta said. "It's important to give them a chance to recover."

— Charles Bermant