Are you a Shadow Agent?

After a recent discussion with a REOPro member, I was enlightened by a phenomenon that may soon be taking over much of our industry. I will refer to it as the “Shadow Agent” and let me explain why. A Shadow Agent is one that works with a 3rd party Loss Mitigation outsourcer to dispose of assets and the bank they are working on behalf of has no idea who they are. All the bank knows is this 3rd party outsourcer assigns the assets, manages the asset and closes the sale. The outsourcer does all this with a Limited Power of Attorney and therefore, the bank doesn’t keep any statistics on me and really could care less about who I am or how effective I am as an agent. Don’t think for an instance that this isn’t possible. I can guarantee you it is because, I myself am a Shadow Agent and have been one for about 9 weeks now. I won’t tell you who I work with because, I really don’t know how that would settle with my outsourcer but, I can tell you that when I called the bank for assistance on a particular file, they were completely lost….had no clue who I was or that my account was being handled by the outsourcer I was working with. In fact, this lender’s in house collections is still calling my clients and trying to bring the account current even though we are already at the BPO stage in their Short Sale. Now, make no mistake, nothing illegal is happening…….it’s just a complete lack of communication within the many departments of this servicer however, what makes me a “Shadow” is that the agent who would have had this REO….now…..isn’t going to get it because I will have already had it sold and closed before they ever realize their inventory is dropping and why. It appears that most of these Shadow Agents are working for Home Retention companies. They make contact with the homeowner and attempt to save the home from foreclosure however, with 73%-76% loan mod default rates as well as the White House HAFA mandate coupled with these Home Retention companies obtaining the Short Sale or REO business you can see how a traditional REO agent working direct with lenders and servicers are going to be put out of business. Shadow Agents, are you one, I am.
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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • I am not one, but I was very aware of one when my buyer was trying to buy an REO. Title was held by a bank, but the paperwork was signed by an asset management company on behalf of a different bank. It turns out it was all through limited powers of attorney (yes, entirely legal and on the up-and-up, but confusing until it's all laid out) and I don't think the bank that held title even knew or cared anything about the entire transaction or people involved.
  • Just this week Titanium accepted my application! Now for training....
  • Hi, Jesus.
    I am also a shadow agent. My clients are foreign investors mainly from latin america. They are interested in southern california and florida. We are now interested in very toxic and ultra distressed real estate assets that usually the lenders can´t get rid off and have a mainteinance cost they want to get rid off. Do you have any suggestions? My email is marcelopereira@fibertel.com.ar
  • Hey Jesse,
    It's been a while since I've been out here...been kinda focused lately. Anyway, you probably already know but in case you or others out there don't, Kondaur usually finds their agents on REO Network. Make sure your profile is updated there and maybe send the link to the people you are prospecting to at Kondaur. Just a thought...
  • Hi Tony,

    No problem, we are all busy plus, on these blogs I never expect anyone to really "reply" back to anything I write so.....it's refreshing just to get the reply, regardeless if it's "late" or not.

    I can completely respect you for not saying the company name.....no problems here.

    I really do think you are absolutely correct with these banks getting more and more creative.

    As for Equator, I am glad they seem to be getting the Short Sale process hammered out, I think I was one of the very first people to use it back 4-5 months ago and it was a nightmare.

    In fact, the moment I learned I could move the file from REOTrans / Equator to Titanium, I did. It was a really bad first experience. In fact, I know tell people with BOA, we will do everything we can to have BOA assign the file over to Titanium......it's just a much smoother process.
  • Hi Jesse, sorry it took so long to reply. You are right....Kondaur is one of those type companies and not too many people would know that. I have also tried to sign up with them direct but I think that that division of the company is still not organized and they don't have a formal way to register or apply, if you google them you can find an AM that posted a random add here and there but always seem to be way out of my area.

    The only reason I won't say the company name is the area of Southwest Florida that I work in is thick with old time REO agents, I've been doing it for three years and that's considered a mere baby down here, I’ve taken some market share and that does not sit well with some.

    The comments that I've heard many times through these forums is the folks are generally unhappy with REO brokers as a whole.....can't really blame them, that’s why I got in the business, the old timers will struggle more in 2010 as home retention, short sales and other disbursement methods are popping up.

    The “Shadow Agent” and the “Reverse Short Sale Agent” are but just a few of the creative avenues of disposition we’ll see this year, everyone who wants to do well will need to pay attention to what the banks are doing……..and the white house. There’s a few things happening that are of real interest to me now. Many of the banks that have sold to the “Vulture investors” are beginning to handle their own properties or at least beginning to put systems in place. Suntrust is a large bank in the Southeast and part of their plan is to manage short sales at a normal close time and not sell their REO’s in bulk. BOA…….which is closed to new agents has recently sent many properties to outsourcers, I’ve tried to get on board with them since I started but couldn’t, out of the blue…. I received 12 listings from them through Equator (REO Trans) over the past three months.

    Now lets take Equator, the name change was a signal of growth and expansion…..did anybody really pay attention to the addition of the new “Short Sale Initiate” section? Well if your in home retention or tackle short sales as a specialty you might wanna look. So far BOA is the only lender but to speed up the process in 2010 it would be very smart for lenders to use a platform just like they do for REO’s.

    I think 2010 will give us all an opportunity and hopefully make up for some lost time (and money) in 2009….Just gotta know how to get it.

    Jesse ,you might be getting a call from some AM’s. I figure Nashville is far enough away from Sarasota. Let me know if you do:)
  • Hi Tony,

    This sounds almost like Kondaur's strategy. I am not asking you to confirm, I am just commenting that I know this "paper" purchasing is getting really popular and several companies are out there doing it.

    By the way, I have been trying to get into Kondaur, had some people give me some good contacts but, no one ever returns a call.....I guess they have their preferred agent here in Nashville.
  • Hmmm, it's amazing how banks, investment groups and outsourcing groups are working the market, 2010 will be a very creative year.

    I have managed REO properties for about three years using the big three platforms and have never been involved with Titanium or any of the home retention groups, however there is another interesting process that I am quickly gaining listings from and I guess I'll call it "Reverse Short Sales"

    To make a long story short I work with an investment group that buys blocks of properties from lenders.....here's where it get's interesting, the group has so called "Asset mgrs" that research 2000 to 2500 properties per block, as far as I can tell there are over 100 of these asset mgrs in a single block and each one has approx 20 properties, they enlist local agents to perform BPO's or a quick CMA based on a " what can you get a contract on it this week end price".

    The first one I did I had written off as a free BPO because I didn't hear from the asset mgr for over 8 weeks, when he finally did call and he was very exited that they got the loan......The loan??? Here's where it get's weird, this group does not buy the property, they simply buy the bad paper before it goes into foreclosure, now that they are in first position they assign the property and settle on a quick price before the homeowner is even aware. As the assigned agent I will approach the homeowner with a short sale situation and offer cash for keys.

    Sound harsh?? Not really, kinda cool if you think about it, the paper is bought for pennies on the dollar without selling on the court house steps or being foreclosed on. The homeowner is offered a DIL without responsibility of the difference owed and the agent and homeowner are not trying to sell a short sale to the bank, the bank is selling the short sale to the owner......."Reverse Short Sale".

    I have had many different asset mgrs contact me from this company as a preferred broker and seem to be at a one to two per month level or however many they can assign me...bottom line is I get all of them because they don't look for other brokers in my area.

    These are properties that are not going to a Retention company or the REO brokers after a bank forecloses, it’s simply (to me anyway) another way to get listings and diversify.
  • Cool name for what sounds like a Titanium Assignment.

    REO agents will only be put out of business if they put all their eggs in the one basket. It's not to be a Shadow, or REO or Short Sale agent. It's to be a business professional and be agile enough to master these types of business.

    If you stop, then you die (in terms of business).
  • Clearly another great post...valuable information!

    I am a Shadow Agent as well. Working for Outsourcers in Lender Loss Mitigation or Risk Management is by far what is needed today and yesterday. It has been a long row to hoe...financially the ball is finally in our court. I am going to assume those REO agents whom have invested in the time and resources to Change with the times will be there also. In my area....the smart REO agents (old dogs) have started new departments in their business...it will be interesting where they will arrive?
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