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Should the REO Bank Sign and Approve the MLS Sheet?

Posted by Carolyn Nelson on October 13, 2009 at 7:30am
Seller%20Sign.jpgShould the REO Bank Sign and Approve the MLS Sheet? Yes, why not?After you receive a listing and have added it to the MLS (Active or Non-active status), send a copy to the Asset Manager for him/her to review and sign. Make sure you highlight the broker and agent remark section, commission, etc. Once the Asset Manager signs the active/non-active MLS sheet, activate the listing and return the signed copy along with the listing agreement in one secured PDF.Why? To prevent any miscommunication or problems after the fact with the information on the MLS. It may seem like a lot of extra work but you are protecting your agency and the REO bank from any claims of misrepresentation of information such as the commission terms, disclosure availability, repair and warranty statements, etc.A simple stamp with the Bank Name, Signature, and Date on each page will do. I have suggested this method to several of the brokers and agents I work with. The Asset Managers did not have a problem with signing the MLS Sheet. They have welcomed the idea! It’s all in the approach.You can also use the stamp for traditional real estate listings.Carolyn Nelson
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ANOTHER WEEK? ANOTHER LISTING! AND MORE SALES!

Posted by Beth Ross on October 10, 2009 at 2:06pm
Wow, where has this week gone? I was going to be a good REOPro member and blog daily and stick to it for two weeks at least. Hello??? I think my last blog was last weekend!I want to know why it is already the 10th of October? Do you realize what is just around the corner? Fall!! And with fall comes winterization, oh please existing inventory, SELL!!! The price is right, the homes are great and I am waiting with pen in hand!What do you mean you found a short sale down the street for less money? Yeah, they advertise it that way, but look at all the time you have to waste to get it and then there is no guarantee until you get it at the closing table! The agent guarantees it? They have a 100% success rate, let me check that out. Look at the stats, ONE short sale listing and ONE short sale sale, and look, it was their own home. OK, I guess that would constitute a 100% success rate.....I love marketing gimmicks.At least with a foreclosure you know what it is - AS IS and it is AVAILABLE NOW!! Thank goodness for the few I've sold to this week that don't know about Short Sales! Of course my short sale agent is keeping busy, so I guess that's why it is good to diversify and take care of both Short Sales and Foreclosure properties.Just had to remind you all that Fall is coming. Gear Up for those calls of frozen pipes and people trying to get inside to stay out of the cold and wet!I hope you all have a Better Than Great Day!
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Real Estate "Shadow" Inventory Sasquatch

Posted by Billie Dalessio on October 9, 2009 at 3:40pm
By now thanks to recent articles in The Wall Street Journal, New York Times, Bloomberg, CNBC and other media, so called Shadow Inventory has come to the mainstream, but it is more elusive than Sasquatch. Real Estate Agents have been blogging about this for months. For those who may have missed it, Shadow Inventory is the defaulted loans that the lenders are allegedly not releasing for sale. According to Rick Sharga, VP of RealtyTrac “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market” Lawrence Yun, NAR chief economist called it a business decision by the banks “ I believe many banks including Fannie and Freddie, who are holding onto some properties, are releasing foreclosed properties in a measured way so as not to flood the market which they perceive then perhaps could lead them to even more drastic price cuts .So they are releasing properties on a measured pace as a business decision to minimize losses”How big is this Shadow Inventory? Well that depends on what you’re counting, and who is doing the calculations. Some statistics include foreclosures that have been completed, plus NOD (Notice of Defaults), NTS (Notice of Trustee Sales), Strategic Defaults (borrowers that are capable, but not willing to continue to pay on negative equity properties), possible Builder Bankruptcy’s, Vacant lots, Zombie Subdivisions, Commercial Loans, Debt-Securitization Markets, Side-line Sellers, and future Option Arms set to re-set in 2010.The problem here is that no two experts are counting the same. Just as followers of Sasquatch, Bigfoot and Yeti fantastic creatures can’t agree on the details, neither can the forecasters of Shadow Inventory. A recent report from Amherst Securities Laurie Goodman, which took into consideration reports from Mortgage Banker’s Association, Trulia, Core Logic and RealtyTrac led to the report that 7 million properties are in this inventory, and this was not including half of the items listed above. https://www.youtube.com/watch?v=stVgR0SeiQoShe further concludes that 7 million understates the problem because it does not include borrowers that are currently 30- 90 days late in paying, only those which already have received NOD. According to Ms. Goodman’s research, a borrower that misses 1 payment only has a 25% chance to recover, after 2 missed payments 5%, and after 3, only a 1% chance to recover.That is only 2 experts, and quite the disparity between 600,000 and an understated 7 million. Atlanta Federal Reserve real estate expert Analyst K.C. Conway, who is part of the central bank’s Rapid Response program to spread information about emerging problems to bank examiners focused on commercial real estate at a Sept 29, 2009 presentation “Banks will be slow to recognize the severity of the loss-just as they were in residential”In my opinion let’s take the monster out from under the bed, and really look at it. Lenders may have inventory of foreclosed homes that have not been released yet. It may be that the process is taking longer, and the REO departments cannot handle the volume, some may have title issues, some might be in a short sale process, or some may be occupied by tenants that just were granted a whole slew of rights through Protecting Tenants at Foreclosure Act in May 2009. Mistrust of Wall Street and Banks is leading some to a conspiracy theory. As someone who has been a Real Estate Broker for 18 years, and has lived through the Savings and Loan Meltdown, sold properties for the RTC and FDIC, I do not believe they are taking into consideration any of the positives in future-casting. Current foreclosed single family residential property inventory is down. Days on the market from list date to under contract is down. Multiple offers on foreclosed homes becoming the norm. What about sideline buyers pent up demand for these properties? Investment firms and private investors itching to buy bulk portfolios? Housing Affordability Index is at a 20 year high, which brings even more buyers into the market. It will take further stimulus, credit market liquidity, lower unemployment rates, and restored consumer confidence to beat the monster, but it can be done.
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Record Streak Continues for Pending Home Sales as Tax Credit Deadline Approaches

Posted by Linda McKissick on October 7, 2009 at 11:27am
The race is on to get FTHBs in contract....Negotiations continue for extension. What do you think? Will they extend this successful program?Any thoughts on why the Gov would end this type of insentive just as real estate is heading into the winter months which are slower for most areas outside the Southern states?Anticipated home sales have increased for seven straight months, the longest upward run since the National Association of Realtors (NAR) began its pending sales index series back in 2001, and now at its highest level since March 2007.NAR said Thursday that its forward-looking measurement of closed sales on existing-homes, which is based on contracts signed in August, rose 6.4 percent from July’s reading and is 12.4 percent above this time last year.Lawrence Yun, NAR’s chief economist, cautioned though, that not all contracts are turning into closed sales within the expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” Yun said.Yun agrees with many other market observers that first-time buyers are rushing to put pen to paper to beat the deadline for the $8,000 tax credit, which expires at the end of next month. This run could very easily result in inflated pending sales numbers that don’t make it to the closing desk in time.Prospective homeowners in the western region of the country are the most eager to sign the dotted line, where distressed assets and plummeting property values make for extremely attractive deals. The pending sales index for the West surged 16.0 percent in NAR’s latest study.In the northeastern states, anticipated sales jumped 8.2 percent. In the Midwest the index rose 3.1 percent, and in the southern part of the country, pending home sales increased 0.8 percent.“Perhaps the real question,” Yun said, “is how many transactions are being delayed in the pipeline, and how many are being cancelled?”Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession,” he said. “Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy.”
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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.
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Get It In Writing!

Posted by Carolyn Nelson on October 7, 2009 at 2:30am
Get it in Writing!How many "Denied Payment" does it take to get it right!When working with REO properties, you need to be very cautious when it involves being paid. Do not take for granted that the Asset Manager or representative will remember your conversation or have made a note in their little black book. The sad fact is that most, if not all, handle hundreds of properties and answer questions and emails regarding those properties on a daily basis. At this point, you are a number in their system and not at the top of the "thing to remember" list.If an Asset Manager or Representative calls and are requesting information or requesting that you perform a duty, GET IT IN WRITING! Too often, Brokers and Agents are so ecstatic to get the chance that they fail to create a paper trail that will guarantee payment. If the email or fax never arrives, send a email to the individual with a summary of the conversation. Ask him or her to confirm the request. If you do not receive a response, do not do the work.Never email the Asset Manager or representative outside of their portal if a portal is being used. Once you email them outside the portal, the conversation is most likely not considered acceptable because there will be a disclaimer listed in your service agreement and on the website regarding emails. PAY ATTENTION TO THE POLICIES! Also, just because the note is in the portal today, does not mean it will be in the portal tomorrow. Consider capturing the screen information for your file for backup purposes.If an Asset Manager or Representative requests repair, especially costly repairs, get the request and approval in writing (NOT YOUR WRITING). Do not try to store the information in your memory bank, GET IT IN WRITING! Too often repairs requests are asked to be completed by the brokers and agents without full approval from the seller/clients. If the client does not approve the invoice and the Asset Manager or Representative approves the request prematurely, you will not get paid. Having the request and approval in writing will provide a solid legal foundation in case you have to file a mechanical lien on the property or a claim against the asset company. Know the law for your area.When submitting your invoices, make sure you include a copy of the email with the pre-approval attached. If you have to submit the original invoice to the bank of reimbursement, include a copy of the pre-approval email along with the conversation to alleviate any doubts.Never assume that the conversation will be remembered and/or your invoice will be paid. After all, if the invoice is rejected, you will have to pay the vendor and/or suffer the loss.Carolyn Nelson www.onlinerepa.com
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REOMasters - Club Tsunami (FiveStar) and the Foreclosure Angel Foundation

Posted by Clay Kime, REOM, CDPE, RDCPro on October 4, 2009 at 2:00pm
I expected, like most others, that everyone would be announcing the success of the REOMasters Network charity fund raiser, "Club Tsunami" at the FiveStar Conference in Fort Worth.But since I haven't seen it posted elsewhere,REOMasters Network raised $27,000.00 for the Foreclosure Angel Foundation from the Club Tsunami event (City Streets Club, September 21st - Ft. Worth).Thank you to all who attended and/or participated. A great time was had by all and a very worthy charity organization was greatly served and supported.Please continue to stand with us as we gather the very best of REO agents, march forward and become a piece of the solution.There's much more to do, and none better to do it with, than YOU!Best of good fortune,Clay
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I Pay for Listings--but it is not what you think!

Posted by Pam Eikleberry on October 2, 2009 at 5:45am
There has always been a cost to become a preferred REO broker on a network--there should be.If it was free to train and become a preferred broker with an REO network, then every Tom, Dick and can't save a buck to save their life agent would be on there. REO is EXPENSIVE! In any given month, I write checks for $20,000+ for utilities, sewer, garbage, repairs, contractors, rehab, signage, marketing and staff. There were months last year, in the winter, when with snow removal and winter power bills I was spending $50,000. If you have a month with no closings and reimbursements are running 45 days, you need to be prepared as a business person for the costs of doing business. If coming up with $600.00 for training is a hardship, you are probably not the agent for the job.There are a lot of new players in the game--good, strong players--people who are branching out from REO as usual and trying to make a go of asset management in an organized way. Companies that are working to earn accounts from large REO wharehouses in the hopes that they can reduce the file to asset manager ratio and improve the quality of listings and reduce days on market in REO deserve a chance--unfortunately, the best asset managers are just that, asset managers, not corporate financiers. They are looking for a little start up capital.If you buy into a new company thinking that your investment entitles you to assets, you might be mistaken. If you buy into a new company knowing that you are making a capital investment in a group of asset managers that you believe in, make sure that they also believe in you and that you will do whatever it takes (in addition to paying a fee) to make their business succeed. That means staying on top of the assets, maintaining them, pricing them well and getting the transaction done with no drama.There is always the alternative--be such an amazing agent that the asset managers will seek you out and waive the fee. As in all other business ventures, your performance speaks for itself--you can put an ad in every website in the world but if your stats don't back up the ad, you're wasting your money.Get 'em the highest price, the best terms and the lowest liability. Works every time. That's just my two cents--and you don't have to buy it. :).
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Do You Know Who the "Big Two" are?

Posted by Lowell Caro, Jr on October 1, 2009 at 7:58pm
I won’t make you guess. The “Big Two” are Wells Fargo and Bank of America. Why are they the big two? They are the big two because during the second quarter Wells Fargo and Bank of America combined, originated 44% of all home loans. http://www.nationalmortgagenews.com/lead_story/?story_id=96Why am I telling you this? Well, despite the fact that many loans are sold or transferred from the originating lender, this still means that the “Big Two” are pretty strong and are likely to have REO asset well into the future. Now you say, “but their networks are closed”. True, so you need to know how to get in to their network. Hmmm…sounds like a great question for “Ask the Asset Manager”!
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Whats Next?

Posted by Michael Howard on October 1, 2009 at 2:30pm
So…Where are we heading in this market? Countless moratoriums at the Federal and State level. Moratoriums from the banks themselves trying to work out loan mod’s. Local Judges refusing to evict homeowners., Local sheriff’s doing the same. Now we have programs like HAMP and Court decisions like National Bank v. Kesler. There is such an underpinning of resentment from the American people against not only the Banks but corporate America as well. Will this sentiment continue to stall the inevitable? I for one am of the opinion that the market must be allowed to run its course. Real estate is and always has been cyclical. Yes, this is one of the worst markets we have seen in decades but “this too shall pass”.There is a huge amount of shadow inventory the banks are holding. Release it. By all means, do loan mod’s for people who are able to, for people who were duped into loans they could not afford. Help those that we can but at the end of the day these loan mod’s are mere Band-Aids, just delaying the inevitable by a year or two. Put the homes that are foreclosed on the market. Foreclose on the homeowners that have no justifiable means to pay those notes and let the market work its way out. It will be ugly or uglier than it has already been…But we will see quicker return to normalcy. The Government would be better served by spending to create jobs so that MORE homeowners do not lose their homes.So, how do we repair it once it hits “Sea Level”?Keep interest rate levels low and keep the tax incentive for first time home buyers.Ease restrictions on investors purchasing multiple properties. (This is key to the rebuilding)Ease restrictions on homeowners who have had foreclosures and or BK’s to get back into the market.Create restrictions so Banks can no longer offer exotic loans (I hear new ARM programs are coming)There are many others but I would love to hear some other ideas.
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I have an REO Listing, Now What?

Posted by Beth Ross on October 1, 2009 at 12:17pm
Having done a number of REO listings over the years, it is still a relatively new field for many of us. I am not an expert, I learn something new every day. Please keep in mind this is meant to be humorous!1 - Got an email today from my asset manager letting me know that I was selected to market and list their property. First though I have 24 hours to obtain an occupancy verification, gain interior access to get pictures, find out the HOA company information and any past due amounts, gain access to all the county records to do a quick search to see if any liens on the property, do a BPO on following that particular companies requirements, find out if there are any utilities on or other pertinent information that I need to pass on to my client. Oh, I best find out what the fees are for getting it switched over into my name along with the deposit required so I can make sure I have enough in my bank account to accept this listing and service it properly for by having all the utilities in my name and which I pay for (of course I get reimbursed as long as I turn in my bills and proof of payment in a timely manner and agree to wait for the payment - most of the companies I have chosen to work with pay very promptly - those that don't go on to find out agents).2 - Whew, got that all done, wait a minute, what are all these other tasks now? They weren't there a minute ago?? Oh, now I have to do a personal property evaluation form and they want pictures of each item (good thing I thought ahead and took pictures while I was doing the interior BPO pictures.) And what's this? Because I marked that the property was occupied, I have to now offer Cash For Keys? What are all these forms? I have another 24 hours to get this done? No problem, I will go back to the house, knock on the door and since I know the family is out I will leave the letter and my card in a envelope taped to their front door (don't forget the picture of that) and if they do answer, I will explain what I am offering and give them the number to the Loss Mitigation department if I have received that. I will set up a time within 2 weeks to a month to allow the occupant to find a new place to live and then I will meet him and get the keys if the property is left in clean condition.3 - Now that the home is vacant (trashed out if it was not an occupied property when I took it over), rekeyed the lock, made sure I had the right combination for the private contractor lock box and have placed a proper MLS lock box on the property, now I can notify my Asset Manager we are ready to rock and roll. Oops, I haven't gotten the listing agreement with the amount they are allowing me to market it at, so I have to remove the sign from the yard cause I can only put it up when I have a signed listing agreement. BUT I can keep the sign in the yard that says the home is in the process of pre-marketing and in case of emergency to contact me at a specific number. I don't accept any offers at this time, but I do keep a running tally of the names that call so that I can call them after I have gotten the listing in the MLS.• Are you wondering why I placed the MLS lock box on the house if there is a private lockbox? Well, I am blessed to have an association whose lockboxes keep track of who entered the property so I don't have to keep a running log of whose has called in to get the lock box code, my log is printed out weekly and placed in the file so when I do my monthly marketing report on that property I can give my AM the correct number of showings and in the meantime I've been able to call back for feedback to since the buyer's agents sometimes forget to call and give that. It's a team effort and I don't mind as I would expect it if I forgot to call and give feed back.4 - Well, now we have the listing agreement all taken care of and I am ready to MARKET AND SELL! First, I am going to go back to the property, make sure all the utilities are on, light bulbs are not burnt out, place a fragrance pot in a couple of rooms, set the air conditioning at about 80 in Summer at 65 in Winter so that when the home is shown, clients are not uncomfortable, I want them to think they are truly home so it will sell better. I am also going to place brochures on the counter, information about special financing and contacts for them to be able to call to see if they can help with the loan. I also leave my agency disclosure brochure, my cards, and if there is an HOA then I try to leave copies of at least the rules and regulations and contact information in case the client and other agent want to gather more information. I also want to make sure the yard looks good and if not I get the landscaper to mow it,5 - OK, the house is set up. I can go back to the office, or home since it is probably about 8 PM and put in MLS and call the people that have been calling about it since the in case of emergency sign went up.6 – Been a month, had 5 offers and they've all been turned down. When will people realize that the pricing is normally set within a realistic range and these 40% and 50% offers are not going to cut it, but I present all offers! I got a task from my asset manager that my Monthly Marketing Report (similar to a BPO) is due in 2 days. Oh I forgot to take pictures yesterday when I was over for my weekly checkup on the property, now I have to go get updated pictures and get them sent in with the new solds and listings that have happened in the last 30 days. Maybe they will lower the price, maybe they won't. My job is to get them the best price possible for the property, not price it at a give away amount! It takes a little maneuvering sometimes to get that right price. But they have lowered the price a little now, and so I go in and redo the MLS, redo the brochures, upload the new MLS to my asset manager, replenish the brochures at the property and call the people that have shown it to alert them to price drop.7 - Just got word after month two and another MMR (Monthly Marketing Report) that the price is down again. Wow, my phone is ringing off the hook from that ad I put in the paper. This price is really a great price and seems to be attracting a lot of attention. Listen to my efax tell me I have three faxes waiting, TERRIFIC, multiple offers on this property. But 2 of the agents didn't call to let me know they were submitting offers.8 - I start filling out the forms for the new offers, oh no, those two agents that didn't call me and just faxed over the offers did not include their contact information, no letter of preapproval on one, no proof of funds on the other, and I have no way to easily find their phone numbers. So I put everything off to the side, go into my MLS system to the agent roster and hope that the name that is scribbled on the last page where they signed it is legible and now I start calling the numbers to verify their contact information. I hope that since it is after hours, they have updated their cell number in the agent roster so I can contact them tonight and get this submitted. Great, it's 11 PM and I've got all these offers submitted in the system and I am closing up shop!9 - 1 PM the next day, I get an email from my AM, notify all parties involved we are in a multiple offer situation and to submit their highest and best offers by 5 PM the next day. Back on the phone, contact all agents and make the notifications and wait for the new paperwork. In the meantime made a notation in the MLS so that other agents will know what is going on and that they have to submit their highest and best by 5 PM the next day.10 - New offers are in - 1 at the same price and two updated ones and look there, three more new ones. And who said there were no multiple offers anymore. Way to go to all you agents out there with buyers!! Ok, all offers are submitted again, now I am off to bed and hey it's only 11:30 PM.11 - Start the next day off, excited cause I know that one of those offers is going to be accepted. Wow, locked up the office tonight and no emails, calls or information from my Asset Manager.12 - Day two - still no word13 - Day Three - I've gotten calls from agents wanting to know if I have heard anything yet. No, nothing yet,14 - Day Four - Yeah, an email! Offers 1,2,3,5 and 6 are rejected. Offer 4 is accepted with the counter proposal paperwork and all addendum's attached. I notify all the rejected agents that their offers have been rejected, I call agent with offer 4 and let them know that I am forwarding the paperwork for review and signatures and I have 24 hours to get it back to my asset manager. Mind you, offer was an all cash offer, but had a couple of contingencies on it and offer 4 was the same price, all cash but no contingencies. The bank accepted the easiest one with a quicker close date as the only counter proposal. Mind you offer 2 was higher than all of them, but was a conventional loan with 10% down.15 - Day Five = Got a call back from the agent with offer 4, his buyer has decided that he is not willing to meet the contingency with the new closing date and has chosen not to sign anything. He had given his highest and best offer! Back to the drawing board. To cut a long story short, we were able to get Offer 5 resurrected and put on the agenda to close. Got everything to lawyers, agents, etc. set up closing date in 2 weeks. I am all smiles!!16 - Day before closing, I get a call from the sellers attorney that the deed had not been recorded yet and we are not able to get the closing done in time because the deed is still in transit and it will be a few more days. Ok, no problem!! I call the buyer's agent and alert them and suggest we get an extension signed for 10 - 15 days or earlier, make sure the buyer's attorney has been notified and wait this out.17 - My asset manager calls me, they never call me they only email me this is scary, and ask if I can help the process along by going to the courthouse and seeing if there is anything I can do to walk the deed through for signatures. Ok, sure I will be happy to. I've learned, don't upset the people at the Recorder's office and don't upset the people at the Master In Equity office. I do my due diligence, find that the deed is actually at the recorder's office, they are recording it as I stand there, I go back to the office, call my asset manager and I am a hero!!16 - Ok, closing is just a couple of days late, but that's ok. Now I have to get all the lock boxes off the property, remove all the information from inside, pick up my sign and call and have all the utilities removed out of my name. I then have to get the utilities to send me an expedited bill as I only have 10 days after closing to get ALL bills submitted for payment.17 - Closing is done!!! Check is in my hand!!! Whew, that was good!18 - 30 days have gone by, I still haven't received my check for my utility payments, collection call made.19 - Oh look, three new listings just came across the email - and I wanted to be an REO agent WHY???The above is purely HUMOROUS only! I love what I do and it is an exciting business. I meet great people and have wonderful experiences to share. Please though, if you are thinking of becoming an REO agent, do your due diligence and research. Understand that your asset manager and banks have guidelines they must follow and you have guidelines you must follow. It is your responsibility that you are legal and ethical in everything that you do. If you are a member of a local, state and National Association of REALTORS you have a Code of Ethics that you must follow and you need to make sure that you keep yourself AND your asset manager out of trouble. Your biggest job outside of marketing and selling that property is to make your asset manager's job easier so they can get the other 200 files on their desk completed a little faster, and they will remember you and the extra efforts you did to help get the property sold AND closed.Remember, when the closing is done, send your thank you cards to everyone and include that Asset Manager also. They may have missed their bonus because of the delayed closing and they may need a little smile to cheer them up to help remember you on the next go round of properties in your area.Under Promise, over supply and as always - Have A Better Than Great Day!!
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Small Office or Major Corporate Brand to handle REOs?

Posted by Johnny Huang on September 30, 2009 at 10:00am
Before I opened my own office, I was with a big named real estate company. I felt that being part of that corporate structure was something I wanted to experience. I've always been part of the small business world and truly never thought going corporate. However, two years ago I took my chance at a corporate office and here's my experience:1. The corporate culture taught me lead generation, contract, escrow classes and such, but when you actually get down to the nitty gritty, contract and deals are within you. Anyone can do a cookie cutter deal, not everyone can look at a deal and make it better, especially if you are looking for the benefits of your clients. Therefore, the work that I did as far as production and lead generation was all MY effort.2. I never saw any of the "brokers" that owned/operated the office. Only the broker-in-charge that was there for review. They may have taught a few classes once in a while, but my interaction with them was pretty much nil. This may be personal to me, but I'd like to see newcomers and greet them because I thought it was respectful, especially if they are going to do the hard work for the company.3. It boiled down to the money I had to depart after close of escrow with splits plus additional fees like printing, tech fees, so on, I felt I was penny pinched. Was it worth plus E&O each year to pay for the support staff and brokers? I was also responsible for my own marketing and Board fee and any expensing involved with listings. I was doing everything on my own and absorbing all the overhead in my own office.Within 3 months of starting at a big office, I started doing BPOs. That lead to my blogging activity on http://activerain.com/blogsview/413473/bpo-learning-curve which lead to REO listings. To the surprise of my collegues in that big office, they were all astounded that a new guy had landed assignments. One thing lead to another, and business was booming until I decided to open my own office.One thought that came across my mind was that I started my BPO and REO work within that corporate culture and will receive REO listings and be recognized as an independent office? I'm convinced it's not the big name but the agent name him/herself that makes the REO's happen.
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How Are You Handling Over The Price Offer?

Posted by Marcelo Da Silva on September 28, 2009 at 3:35pm
In some parts of the nation, it seems that you are back in 2005 when house were selling in minutes if not seconds. And no more how much the offer was over the price and it was financing, there was no problem with appraisals.Fast forward to 2009, here we are in similar market. Not only REO inventory is down but the inventory in general. Demand is high causing multiple offer situation in most properties. Nonetheless, we have strict appraisal rules and banks being conservatives in lending their money. Owner occupied buyers who are financing the purchase are competing with inverstors who are buying in cash.Owner occupied buyers are offering sometimes 50% to 100% over the listing price while investors although are offer sometimes more than the listing price are not going that high. Appraisals have been an issue as most of the owner occupied financing are not appraising at the contrac price causing delay in closing and losing an opportunity to sell cash buyers who were put an offer but lost the bid. As a listing agent, how are you making sure that the highest offer if financing will go through with no problem with appraisal?
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REO's the "GO TO" choice in this market.

Posted by Joshua Jarvis on September 28, 2009 at 2:10pm
If you're looking anywhere outside the perimeter of Atlanta then it's likely that you have shown a foreclosure or short sale. To be more specific you have showed an REO or POTENTIAL short sale. REO's are quickly becoming the "GO TO" choice in this market. With agents being somewhat unreliable and bank's short sale systems being even more unreliable and unpredictable, suddenly the topsy turvy world of REO becomes somewhat of a welcome comfort.Multiple Offers? Great! At least I know the bank will sign ONE!Moved Closing Date? So what, it's only a title defect and not a foreclosure date!Seller Is Irritated vs Seller Is Destroying the homeSeller to Choose The Attorney vs Attorney doesn't know that this file has a negotiator!Key under the electrical box vs Property Preservation Changed the Locks and didn't tell the agent.Yep, REO's are as easy to pie when you think about the Short Sale world.
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Agents, Agents, Everywhere....

Posted by Cynthia McKenna on September 27, 2009 at 2:12pm
I find that the harder I work in this REO business, the more people want from me....is this a good thing, or a bad thing?I am newer to this business, in that I am only doing this for about a year. I fought long and hard to get my chance and the number of people now who are trying to say that I am 'lucky" because I get assets from banks is incredible! There was no amount of luck to it. My chance came from following one asset from short sale into foreclosure and establishing a relationship.To anyone trying to break into the REO business, there are many ways to do it. I have completed numerous BPO's, which have not directly given me a listing. They did, however, help me lock down my knowledge of numbers and valuing properties.The key is to be consistent and persistent in your efforts. If something is not working, try doing it in a different way...When you finally receive an asset, you had better be prepared to do a lot of work in a very short amount of time. Banks are grading you on your performance. Listing agreements often come with specific instructions, attention to detail is a must.Finally, do not be afraid to help a newbie....there is plenty of business for all. It would have been nice to realize that there was help out there. I just came upon this site, it is so helpful Thank you for keeping it real. Keep it positive and keep it ethical. You will have local agents coming to you with their clients and begging you to help them find something for them.
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Resume Submission

Posted by Pam Eikleberry on September 27, 2009 at 12:45pm
Well, it is a relaxing Sunday afternoon and, while I should be entering data in Quickbooks from this week's reimbursements, I find myself revamping my REO resume for submission.Every A.M. is looking for something different, I guess, but the hardest part about this resume is that it is always less about how well qualified I am for the job and more about how close in proximity I am to the job. Every website that asks for a portal asks for three main items: coverage areas, years experience, and references. The three least exciting things about our business models!References (historically so boring and space consuming that they are referred to on the end of the one page resume with a note like, "references upon request" or "references on following page") need to be up front and center. Here is the kicker--I feel AWFUL when I call my A.M.s and would rather not call unless a property has burnt down. Using them as references seems like torture. Many of my A.M.s carry 500+ assets and the last thing they need clogging up their work pipeline is a reference request from a competitor asking if they don't mind if I take some time from their assets to take on a couple more. Never mind that time is elastic, nobody wants to share.Years experience in REO seems like it should logically be replaced by number of REOs in the past 12 months. Experience selling REO inventory before the current federal and state guidelines were in place or before REOs were liquidated and managed in web based portals and platforms should be obsolete. Technology capabilities and energy (who hasn't been in the office submitting multiple offers until 3 am?) should be on that resume requirement list somewhere. It just seems that a stodgy Monday through Friday 8-5 shop might not be able to cut it in today's fast paced high tech environment.Coverage areas are necessary, I understand, but a comma dileniated list of zip codes is so unromantic at the top of a business resume--if anyone has found a better way to present that, I would love to hear about it.Well, back to the grind. For all of you who are revamping your resume to read, "Five Star Certified" after last weekend, congratulations to you and I hope you had a great time.
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Understanding Making Home Affordable Program - Modification & Short Sale Guidelines

Posted by Marcelo Da Silva on September 26, 2009 at 7:30am

When the admnistration introduced regulations to stop the foreclosure bleeding that was affecting the health of our economy, the Making Home Affordable came to life. Under the Making Home Affordable the servicers that agreed participating will receive $1,000 up front and another $1,000 up to 3 years for every successful loan modification. On the borrowers side, they will receive a $1,000 per year up to 5 years that goes straight to their balance provided they are current. And the investor will receive $1,500 bonus while servicers will receive $500.The Making Home Affordable was amended on April, 2009 to address the short sale. Under the guidelines, servicers will receive $1,000 for a successful short sale or DIL (deed in lieu of foreclosure), borrowers are eligible up to $1,500 for relocation expenses and the Treasury will “share the cost of paying junior lien holders to release their claims, matching $1 for every $2 paid by the investors, up to a total contribution of $1,000 by Treasury”.Please note that while the modification side of the Making Affordable program will expire on June of 2010, the short sale side of it will expire on December of 2012. It seems that short sale will be in for a while and if that will impact the REO inventory is yet to be seen. What is your take?
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Loss Mitigation - Incentives for Short Sale Transaction.

Posted by Denise Stovall on September 26, 2009 at 4:14am
Is it a rumor or a fact? Short Sale transaction conditions have supported that lenders are stepping up to the plate and offering both their Delinquent Borrower/Homeowner and Realtors "Deals" to remendy a default/delinquent loan by a quick Short Sale transaction. Full borrower cooperation supported by experienced Real Estate service is the key to success. Incentives usually add up to dollars and cents for everyone involved; lender-borrower-realtor.Denise StovallNorthern CaliforniaSonoma County
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Alexandria Virginia (Fairfax County) REO Listings Climb

Posted by Clay Kime, REOM, CDPE, RDCPro on September 25, 2009 at 4:00pm
Current REO Listings total 58 assets, up from 47 assets, week over week (19% increase). Current Listed Prices range from $58,000 to $501,900 for all property types. Under Contract/Pending Listings total 102 with last-list prices ranging from $52,000 to $538,000. Generally, the property prices appear to be stabilized at both the low and higher-end. The increase in the number of assets avaialble, if it becomes a sustained trend, could weaken the stabilization and lead to lower prices.
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