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Before you submit a reo reimbursement to the reo bank or asset management company, there are five items you need to double check.

1. Vendor Correct Contact Information. The vendor contact information must be correct at all times. Make sure you have accurate information such as the full and correct vendor name, complete address, phone number, and business license number.

2. W-9 Forms - A completed and accurate W-9 form is very important. It doesn't matter if you are paying the vendor or if the bank/asset management company is paying the vendor. Inaccurate social security numbers or tax ID will often delay and/or result in payment rejection in invalid 1099s at the end of the year.

3. Certificate of Insurance - All vendors that perform repairs, install gas, electric, HVAC, pool,  and plumbing systems should have a Certificate of Liability. These are high dollar items and if the work is not performed correctly; resulting in damage to the property, should be held accountable. Additionally, many of the asset management and reo banks are now requiring the certificate.

4. Certifications - When work is perform on wells, septic/sewer, hvac, foundation, roof, etc., the  vendor is required to provide certification showing that the work has been completed and is working. If the vendor is unable to provide a certification, the vendor is not qualified.

5. Completed Invoice - All invoices should be complete and itemized. If not monitored correctly, vendors and agents will submit incomplete invoices to the asset management company and reo bank.  All invoices must have the following items to justify payments and/or to help ensure reimbursements.

• Complete vendor contact information
• Full Property Address
• Invoice number for easy tracking
• Loan number or property ID listed on each page
• Service dates, from and to
• Itemized list of services provided with the price listed for each line item
• Before and After photos for ALL repairs

6. Invoice Submissions - All invoices should be submitted within 48 hours of work completion and must include the asset management company/reo bank required documentation and follow the correct process. 

Following the correct procedures ensures that you will get paid and get paid on time. Trying to alter the required process will make it harder for you to get reimbursed in a timely manner.

I've been using QuickBooks since its inception back in the 80s. In fact, as I was reorganizing my library of software programs and toys, I sorta drifted back to the beginning of my program collection such as my old versions of SuperCalc 4 and 5, MS Office DOS Version (1988 and 89 Copy), QuickBooks 1988 - 2006, Quicken Invoice DOS and Windows (initial Copies), and more. Ok, back to the topic.

I prefer the method below because it allows me to accurately track each property expense, I can apply the property to the vendor job, and when the reimbursement arrives, I can easily retrieve a list of all reimbursements submitted when I begin to type in the property address. NO MORE SEARCHING THE INVOICE SECTION!!!!!

How to setup you REO properties as projects:

• Create each REO Bank as a Customer in QuickBooks.
• Right click on the Customer name (Bank) located in the left margin.
• Select "Add Job".
• Input the property information as follows: property address-asset number (999 Mockingbird Lane - ALS123456789.
• Complete as much of the page info as possible.
• Save the setup.

TIPS!

• Us the Custom Field in the "Additional Info" tab to add your commission information.
• As you create new jobs for each project, list it under the "Job Info" tab, this includes the utility deposit, connection fee, membership fee, account number information.
• Always include the street address and asset number. Most if not all banks require the address and asset number on each invoice.
• You can easily create multiple jobs under each Project (Property file) for easy tracing of work in progress, pending, completed, cancelled, etc.

Carolyn Nelson
Online Real Estate Assistant

REO banks require the agent to turn on the utilities, pay the bill, and submit for reimbursement. It is very important that you keep track of each bill and submit in a timely manner to ensure that you are reimbursed by the banks. During the rush of completing your daily tasks, don't ignore the utility bills by adding it to your already filled and probably overflowing inbox. Separate your utilities and other bills by using hanging trays. Hanging trays can be added to the side of the file cabinet, hanged from the wall, or stored using a vertical rank on your desk. The bottom line is not to mix your bills with other office paperwork. Click Here for a Sample Upon receipt of each bill, add it to the tray for processing and process each bill weekly! Attach a copy of the check to a clean copy of the utility bill. Remember, each utility bill must show the following:

1. Utility Company Name and remittance address
2. Utility Account Number
3. Property Address
4. Service to and service from dates.
5. Itemized utility breakdown.