10 Reasons Why Your REO Grade Could Be Low.

Brokers and agents often wonder why they receive such a low rating with REO Banks and Asset Management Companies. Instead of looking at their past output and current REO Process from assignment to closing. All asset managers want to feel like they are #1 and the only  client on your list. If your rating has fallen and you have not received any new or very limited properties from the REO bank and Asset Management Company, the following is a list of possible reasons why per several of the AMs I talk to often.

1.       Not following instructions!

2.       Your follow-up timeframe does not exceed the expectations of the asset manager. Are your taking more than 24 hours to verify the occupancy of the dwelling?

3.       Initial BPO and updated BPOs. Is it taking you longer than 48 hours to complete the BPOs? REO Banks such as GMAC expect 48 hours or less. Yes, we all see the 7 day turnaround time in EQUATOR but it needs to be completed much sooner.  No asset manager wants to see your task in red or yellow. Otherwise, your grade will be affected.

4.       Cash for Keys – How many CFKs have you successfully negotiated and if your are not successful, have you improved your CFK negation skills? Work on it!

5.       Are you following the bidding process and guidelines established by the asset company or are you making your own and trying to set your own rules to the requirements? If your are setting your own rules, you will get a low grade.

6.       Reimbursements – Each company has guidelines that list how the reimbursement must be submitted and a list of all supporting documents that are required. Are you submitting the requirements?

7.       Are you submitting estimates, bids, proposals, and statements in place of invoices? Shame on you. There is a big difference between an Invoice and the other items listed above.

8.       Setting the Price Right! Surprisingly, most asset manager use your expertise to set the price unless, you have a growing history of over and under pricing.

9.       Days on the Market (DOM) – Do you have properties on the MLS for more than 60 days? This is a big NO! NO! Work on getting the property more exposure. Don’t rely only on the MLS and Craig’s List. Post the property on 50+ sites (most free), and create a viewing report monthly for the AM. Additionally, add more than one photo to the MLS and marketing efforts.

10.   Are you keeping your closings on track and updating the required individuals in the loop? This is a big “To Do”!

You should also be aiming to build a reputation with the asset companies. You can build confidence in your skills, experience and profession if you settle for the basics. There are more reasons but I opted to list the top 10.

11.   Poorly written documents.  Consider using fill-able forms.

12.   Marketing verbiage is not impressive. Agents tend to provide simple verbiage on the best of homes.

13.   Poor quality photos used in marketing and BPOs.

14.   Lack of organization and file tracking outside of the portal.

15.   Lack of professionalism in emails and phone calls.

16.   MLS sheet lacks enough information that will get the buyers/investors interested.

Consider improving your skills, process, and perhaps, revamping your team.  Don’t be the eager beaver by taking on more properties than you can manage.  Turn your grade around and go for the A+.


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