reimbursements - Blog - REO Pro Network

Organizing Your REO Expenses

Posted by Carolyn Nelson on August 27, 2011 at 3:43am

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:

Utility Company Name and remittance address
Utility Account Number
Property Address
Service to and service from dates.
Itemized utility breakdown.

Before and After Photos Are Important

Posted by Carolyn Nelson on October 7, 2009 at 6:16am

Before and After Photos Are ImportantHow often do you make it a priority to take before and after photos? Well, make it a priority.Whenever you are assigned a property, make sure you take lots of before and after photos of every aspects of the property. Before and after photos is your proof that the vendor provided the services and that you are truthfully submitting a legitimate invoice. You should also take many photos from different angles, and turn on the time and date stamp located on the camera. Label each photo so it would accurately define the areas of the property.As a rule of thumb, take before and after photos for the following:House Exterior – all sides of the property exterior and a minimum of two shots each.Yard - Front, back, both sides, and street view. Take photos of ALL irregularities in the yard including debris, damaged area, pipes, sewer drains, etc.Electrical Units – Take photos of the HVAC, fuse box, all damaged electrical outlets, wiring entering the house, and other damaged electrical items.Appliances – internal and exterior photos of all appliances.Water Pipes and Devices – take photos of the laundry room inlet and outlet (drainage), water tank/heater, etc.Gas/Oil tank – take photo of all sides, gauge, connection line, meter reading, etc.ALL Rooms – Clean photos should be taken of all rooms in order for easy labeling. Photos of the closet interior, overhead lights, windows, carpet, walls, tiles, and doors. There should be a minimum of eight photos for each room and at least five photos for each bathroom in the house.Kitchen – Above and below the sink, clean photos of the cabinets, countertop, kitchen floor, and areas where appliances use to be. Depending on the setup, you may need to take photos from different angles.Basement – Usually the dampest section of the house need many photos. Take photos of the foundation, walls, ceiling, pipes, windows, doors internal and external, all damaged areas, etc.Repairs – Take before and after photos of ALL repairs and lawn work regardless of the type and cost. It is better to be proactive with your photos than to be reactive, it will be too late and often harder to prove that the property was in worst condition prior to your completing the work.I also advise that you keep and maintain a work order list for all vendors. The vendor should be required to add the work order number on all property invoices, and your bookkeeper/assistant should reference the work order on all REO Expense submission to the bank for payment. Having a system trail is important.If you have any questions regarding the photo requirements of the bank, always check your REO manual/guideline. Remember, it is better to be proactive and not reactive. If you don’t have the proper photos, you will not get paid.

Managing your Reimbursements Part 3 – Working with your vendors

Posted by Carolyn Nelson on July 30, 2009 at 3:42am

Any Broker and Agent that have worked in the REO for a considerable amount of time understand the importance of working with your vendors. Those brokers understand that vendors are more than service providers. Your vendors are a part of your team, the well-oiled team.When working with vendors and before you hire a vendor, consider a few useful advice.1. What is the vendor's track record? How much experience do you require and how much experience does the vendor have in property preservation?2. Is the vendor licensed? You should be looking for a skilled, trained, and licensed vendor to handle most of your property preservation jobs except lawn care.3. Does the vendor carry liability insurance? You should not hire major contractors that cannot provide an up-to-date Certificate of Liability. This includes and not limited to vendors that provide roofing, structural, HVAC, electrical, and major repairs on the property. If the final work becomes a liability issue in the future, who is responsible?4. Service Contract/Agreement - All vendors should be on contract with the terms of service written in plain English. A few items that should be covered:a. Services to be rendered - Clearly define who, what, how, when, and why the services should be rendered.b. Invoicing procedure and terms -When, how and why the vendor should process all invoices in a certain manner and what are the consequences if the invoices are not submitted according to the procedures outlined.c. Payment Terms - How and when will payment be remitted. All vendors except the utility companies should be on a PWP process, 30 - 45 day payment process, and all invoices totaling $250 or less should be paid immediately. The vendor should be aware of the process upfront.d. Vendor responsibility - Clearly define what the vendor services should be covering. Example: if the vendor is boarding/re-securing broken windows, this should include removing ALL broken glass and related debris on the interior and exterior of the property. What is the vendor's turnaround time on common projects?e. Broker/Agent responsibility - Clearly define your responsibility to the vendor.f. Mediation - If mediation is required, what is the procedure and cure.5. Do not let failure to pay your vendor or pay in a timely manner an option. Too often some brokers and agents get into a penny crunch and attempt to prolong or avoid paying the vendors. Not only does this tactic ruin your reputation with the vendors, it will also cause major problems with the REO Bank. Depending on the outstanding amount, law, and time frame, the vendor could consider a Mechanical Lien on the property. I've seen this happy many times.6. Submit your invoices for reimbursement immediately. Spend 30 minutes a day submitting invoices. Adhere to the bank's submission procedure. Do not change the procedure to suit your own needs. Always be prepared to provide the following:a. Typed Invoiceb. Itemized Invoice - include the service date on each itemc. Full property address with REO/Loan numberd. Copy of the W-9e. Copy of the payment method. If paid by cash, the vendor my sign, date, and indicate cash payment. The broker/agent must also sign, date, and indicate the cash payment. It is wise to not pay by cash to avoid any problems with the bank's accounting department and seller procedures. GET A MONEY ORDER OR CERTIFIED CHECK! Cash is not traceable in disputes.f. Keep a copy of all submissions for your file (hard copy or electronic).7. Utility Bills - Pay the utility companies on time to avoid any late fees. The banks will not reimburse the broker/agent for late fees. If you are paying the utility bills online via the company website, don't forget to print out a copy of the payment receipt. Writing the check number, amount, and date paid is not sufficient proof of payment.Start the process of paying each vendor on the right foot. Don't get into the habit of holding back payment because you can't manage your funds or for fraudulent reasons. The banks frown on FRAUD and angry vendors calling in to complain about non-payment.If you are behind the eight ball and are not up-to-date with your invoice submissions, it is time to take the time and get your invoices in order. Spend 30 or more minutes a day getting your files in order. If you are working with a remote real estate assistant and other agents, consider using an online program to manage your BPO files. Take a look at MS Workspace Live, eBrokerHouse.com, TAZAREO, GetDropBox.com , and SharePoint, or an OTM program such as SettlementRoom, SureClose Personal, Transaction Point, RELAY, PaperlessRE, or TrackMyFile.Carolyn Nelson

Before you Sign-up for BPOs and REOs

Posted by Carolyn Nelson on June 10, 2009 at 9:00am

Deciding to work with a BPO and/or REO company should be a two-way interviewing process. Brokers and agents eagerly try to get into the business by randomly completing the online or hard copy application process then several weeks or months after completing a BPO, act like a disgruntle employee by complaining to others because he/she/they did not get paid. Well, how much research did you do?You should never leave your business and services to chance and hope. Neither will pay your expenses nor will it guarantee that you will be paid. So what do you do during the initial process while researching and signing up for BPOs and REOs?1. Review the company history (website, financial data, etc) and read what others are writing on various forums.2. Randomly send out inquiries to ten or fifteen brokers and agents (in and out of state). If a broker or agent "outside" of your area/state freely gives the thumbs down, the company may not be a benefit.3. Check with the Better Business Bureau where the company is located.4. Run a $19.99 D & B check. http://www.dnb.com/us/5. Inquire with some of the title companies or closing attorneys in your area. What do they have to say?6. If you have noticed that some of the big firms or a top agent no longer service a particular company, chances are the asset management company is a slow payer and/owes big bucks.7. Talk to some of the property preservation companies in the area, are they being paid in an appropriate amount of time, 14 - 60 days or 60 - 365+ days?8. Review the company's service agreement thoroughly. What are there terms, what is the process for accepting BPOs, how do you submit BPOs, are there any documented instructions, are the BPOs also guaranteed listings (if listings are what you are seeking), what is the rating system, etc?9. How are the BPO and REO process handled? Is it managed through a user-friendly system such as RESnet, IAS, REOTrans, Wells Fargo, or Citi Residential? Let's hope that they are not on the fax or email system whereas it is assumed that your fax or email is received before the deadline and not afterwards.10. Know the phone, fax, and email for Accounts Payable. Get a name if possible.11. Cost - review the cost. If you are going to pay big bucks to join, you should be getting a huge return on your investment. Yes, it does take money to make money but you don't go broke in the process. If you are paying by the zip code, be selective with the zip codes. Don't select areas where there is a high mixture of residential and commercial properties unless you service both.12. Customer service - if you call customer service, is the person on the other end receptive, confused, rude, or hanging out in the twilight zone and need to walk toward the light?13. Read the reviews of your peers. Are the compliments and/or complaints legitimate?Take your time when researching BPO and REO companies. Don't assume that working BPOs and REOs is a piece of cake. All of the agents I work with are hard at work at midnight and back online before the sun comes up most days. It's called dedication. Reaching that level of success did not come overnight. There were a lot of bumps, bruises, missed school events, late dinner, and delayed vacations that paid the price. I'm sure many of the veterans have other questions that should be ask. These are a few I have been faced with over the past five years when I research companies and make general inquiries before wasting my time with the application process on behalf of brokers and agent.ARE YOU REALLY READY TO WORK IN THIS INDUSTRY?Food for Thought!Carolyn Dobbs, www.reobookkeeper.comJoin the BPO and REO Solutions Group!

Managing REO Reimbursements

Posted by Carolyn Nelson on June 10, 2009 at 2:00am

Reimbursement management is very important when working with REOs. It builds a relationship with the REO bank and a committed relationship with your vendors. Too often, brokers and agents will put the invoices in a pile or box and pray for the reimbursement fairy to come along and make it disappear through automatic submission.HELLO! That is not how it works!Working with REOs is a very serious job and should not be taken lightly. Each REO bank has its own policy. You cannot deviate from the guidelines and assume that you or your vendor will be reimbursed. You cannot build a team of providers when you ignore invoices and expect the vendors to idly sit in the background and wait months for payments for jobs completed on properties that are under contract or have been closed.Managing Reimbursement Tips1. Set aside one hour daily to assemble your vendor invoices or hire an assistant to work part time.2. Use an online program for invoice submissions (Drop box or MS Workspace Live).3. Do not use your general email address to receive invoices. Setup a separate email address and make sure it is the only email address used by the vendors. Setup a rule within your web mail program so all emails will be sent to a specific folder and not mixed with other general emails.4. Require each vendor to submit all invoices within two calendar days.5. Require all vendors to include the invoice number and full property address on each invoice as well as the service date next to EACH line item. All invoices should be itemized.6. Require before and after photos for all jobs including initial lawn cuts, de-trash (interior & exterior), securing, repairs, replacement of appliances, etc.7. Processed all invoices upon receipts. Input all accounts payable into the bookkeeping system daily.8. Setup a master account with each utility company.9. Save time with paperwork by paying your invoices once a week and using checks with vouchers. The voucher will list all invoices for the vendor with the property, amounts, invoice number, and description.10. Use QuickBooks Pro to manage your reimbursements and setup each property as a project/job under the client account (reo bank).11. Update your vendor and client contact information upon notification.12. Keep digital copies of all W-9 for easy submissions.13. If the bank uses a word, pdf, or excel reimbursement form, pre-type the vendor information or create a macro that will fill out each form or the form main headers.14. Convert forms to fillable PDF documents.15. Record receivables immediately so you’re A/R aging is up-to-date and accurate.16. Follow-up on all A/Rs weekly and submit monthly statements to the REO bank.17. If the invoices must be mailed, use priority mail, Fedex, or UPS with signature confirmation. Know which invoices were mailed in the batch.18. Retain copies of all invoices submitted with the submission dates.19. Get involved if your reimbursement specialist is having problems getting a response from the reo bank.Build a process to ensure that everyone is paid and happy!The REO Bookkeeper

reimbursements (5)

Organizing Your REO Expenses

Before and After Photos Are Important

Managing your Reimbursements Part 3 – Working with your vendors

Before you Sign-up for BPOs and REOs

Managing REO Reimbursements

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