Great story in DS news about the panel that NAWRB National President Desiree Patno spoke on yesterday on running a top-rate REO office.

Some REO Brokerages Prosper Despite Decreased Inventory

Desiree Patno, founder of the National Association of Women REO Brokerages and founder of Desiree Patno Enterprises based in Irvine, California, said her staff takes 15 photos of each property each week and then once each month conducts a comprehensive walk-through taking about 200 photos.

Patno’s staff photographs plumbing, cabinets, utilities, etc., so that they can report and address any damages when they occur.

Patno also stressed the importance of being constantly available to clients. She makes sure someone is answering the phone in her office from 7:30 a.m. to 10 p.m.

http://www.dsnews.com/articles/some-roe-brokerages-prosper-despite-decreased-inventory-2011-09-12

The Five Star REO Expo was a huge success for everyone!  Thank you all who attended. 

Our next event will be September 17-22 at the NAHREP National Conference in Los Angeles, CA.  NAWRB will be holding a Power Breakfast.  Stay tuned for more info.

Leading Ladies A #WOMENBIZOWNERS Working Event.

Keep the Five Star kick-off going with an exclusive NAWRB #WomenBizOwners Working Event at the Hilton Anatole. NAWRB #WomenBizOwners and Women with Access will be sitting down for a working session on HUD contracting and offering an exclusive opportunity to contribute to NAWRB's response to the HUD/FHFA Request for Information (RFI) on how to reshape REO disposition. If you're interested in government contracts and looking for an opportunity to engage directly, join us on September 11 after the Five Star kick-off at the Hilton Anatole. To RSVP or get more details, please e-mail info@nawrb.com.

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.

The group this week hit a milestone I wanted to welcome all the new members and thank the first members for their posting of comments and keeping the group active and growing.

This group is to discuss Bank of America properties with Bank Of America and to share solutions to getting more business with Bank of America or getting in the door with Bank of America and to stay up to date on their requirements.

Website: http://reopro.ning.com/group/bankofamerica
Members: 103

Well for those of you who don't know, REO stands for Real Estate Owned, or bank owned properties. As an REO Listing agent I have seen my inventory shrink during 2011, I used to receive several houses to list every month from different clients and now they are down to a handful and I have more houses waiting for foreclosures to be ratified in the courts and evictions than the ones I have actively listed.

It is easy to understand that it might work better this way, because it keeps the demand and supply balanced. My listings are moving quicker and selling to relative higher prices than they were last year. I believe that banks are controlling the inventory so the prices don't drop so much, etc. 

Also everybody knows the popular term from last year robosigning, some states have created more obstacles for banks to foreclose on properties and even evict tenants, etc. I know in Maryland the banks have to contact the homeowner and offer the opportunity to apply for modifications, etc. I know some banks hired third party companies to make sure that usually real estate agents visit the homes and deliver documents, call the bank and put the homeowner on the phone, etc.

Today I read a good article that explains in more details why banks are doing this inventory control, not just to avoid property values to drop so much, put to make their books stronger and to manipulate data to their advantage.

Here is a link to the article  

It is hard to understand how a borrower can stay at a house for several years without paying mortgage, and getting away with that. Also banks are trying to sell their portfolio to investors rather than retail. And another idea that keeps resurfacing is the rental options.

I have a field team of 3 that are awesome. One of the field people, Ida, is a lady in her late sixties that doesn't have to work, but just loves the hustle of driving around and being out in the field.  For 60+, she's in great shape and is the kind of woman you wouldn't want to cross (I almost lost an arm-wrestling match to her a few years back!...Like I said ALMOST...LOL).

Anyways, a while back she went to check one my vacant REO properties in a sketchy part of town.  She made her way through the house checking the living room and bedrooms to make sure all was okay when she heard the shower running at the rear bathroom. She opened the door and found a squatter in the shower, butt-naked, ding a ling out and all!!  Now if this was me, I would have backed out fast, went out to my car, and called the police.  Ida took a different approach and scolded the man for trespassing. He pulled on his boxers quickly and as he was angrily stomping towards her yelling at her "Get out!", she whipped out her camera and started taking pictures of the squatter!!! (I posted photos to my website: http://wp.me/p1yiuo-2o) He ended up grabbing his stuff and running off, but I couldn't believe this story!

Of course my staff's safety is my top concern and we discussed better ways for her to handle this the next time....but HOLY CRAP!! I don't know if Ida was crazy, stupid, or just a bad-ass 60+ female version of Braveheart.

If this was you, what would you have done? Anyone have any scary run-ins with squatters on your listings/showings?

Save the Date: NAWRB's Leading Ladies Anniversary Celebration

Join NAWRB immediately after the Five Star Conference's kick-off for "Leading Ladies: An Anniversary Celebration," at the Hilton Anatole.

Save the date for a night of networking, special guest speakers and jewels. More details to be announced soon!
 
Member and Women with Access reminder: Five Star is supporting women business owners with an exclusive $100 discount until August 15. Be sure to register today and be a Leading Lady at the year's largest default services conference.
 

For more information on Leadings Ladies, or to join NAWRB, please email info@nawrb.com

I have not heard this topic brought up much when taking REO courses and online discussions on how to grow your businees. I have read talks of failed banks on post and names of banks along with a direct link to US Treasury in various places but not how it relates to growing your REO business. I have to think there are numerous ways to use this list to help to gain new listings after all these banks have assets they are holding and if the bank is closing this would most likely direct you to think they may be toxic assets.

FDIC: Failed Bank List  here is a link to find the official list.

The FDIC has released the financial statistics on the banking industry for the of 2011 to date 116 .

As of May 20, 2011, the FDIC has participated in the closing of 116 banks this year.

With the first two quarter results now available we can observe the actual shrinkage in the number of banks in the United States.

On March 31, 2011 there were 6,453 banks in the United States, 77 less than existed on December 31, 2010.

There were 6,773 banks in existence a year earlier.

At the start of the recession in December 2009, there were 7,284 banks in the banking system.

The largest drop in banks in the first quarter was in the smallest institutions: there were 51 fewer banks with assets of less than $100 million at the end of the quarter than at the end of 2010.

Banks between $100 million in asset size and $1.0 billion in asset size dropped in number by 34 units.

There is a vacant house in my neighborhood that is driving all the neighbors crazy, it has been vacant since October of last year, I am sure if it hasn't foreclose yet it is about to. grass is 5 feet tall, weeds are growing very tall, ivy wraps around the house. broken fence etc.

I was driving home last night and I saw a hand written sign on the front lawn, I stop to read it and was very surprised to read " Froclosure $55K Needs work and the phone number"

It makes me wonder if the listing agent ran out of signs and decided to do this sign, forgetting the broker's information, equal housing  and realtor logo, or it is one of those investors trying to sell an assignment.

I don't know if it is my luck, but lately I have several settlement delayed due to title issues. I know with REO properties usually we have these delays, because the ratification of foreclosures and deed recordations. But lately I have found some crazy things.

I have two properties that have been under contract since April and May, both have title issues.

Property one is bank owned. It has been undercontract since April, they are waiting for previous foreclosure recordation, that is the foreclosure in 2004 before the investor who just got foreclose purchase the property. Now we are waiting for the seller's and buyer's title copanies to get it right this time, but it has taken too long.

Second property, is a short sale, the title problem is that the transaction in 2000 the title company only have one of the previous owner's sign deed and title documents no the couple that used to own the property. Now the current owner is trying to short sale and the buyer's title company has not been able to find the previous seller to get a signed affidavit or get the previous documents signed correctly.

What is wrong with these title companies not doing a  good job at their title research. These are really dumb mistakes. I know in the previouse 4 years, several title companies have gone out of business in the area, some owners are either in jail or have taken their lives because of the imbecilments and other iregularities with their business practices. 

I hope in the near future the insurance commission takes more control and do better audits on the title companies to avoid these type of issues in the future, it is not fair for the seller, buyers lenders, agents and other title companies.

Someone ones told me that numbers don't lie, but they can be manipulated. Here is an example, I just read an article titled "Foreclosure Sales Decline Second Straight Month" that makes it sound like it was good news for our market and our economy. I really believe that the numbers are right, but they are not telling an accurate story.

The reason foreclosure sales are down is because the active inventory of REO properties is down due to the robo signing and other factors. I can see that in the past 12 months 90% of the REO transactions have title delays. I guess after the freeze of last year, now title companies have decided to do their job and there have been several delays, up to 7 months for titles to be clear and settlements taking place.

At least in my market in Maryland, the REO inventory has shrunk from last year, I know some brokers have downsized their staff and are now pursuing other venues of revenue like short sales and multi-level network marketing ventures.

But lets face reality the amount of foreclosure files has increase by 1% according to the same article. When I drive around I can see several empty and unkept homes that I know by experience they have been foreclose or they are in the process. I know several "home owners" who still live in their foreclose home after almost a year of the auction date, because the banks are waiting on the courts for the foreclosure ratification, etc.

Lets face it loan modifactions and the lack of control on short sales is not stopping the foreclosure train, it is barely slowing it down. It is a sad thing, but I think there is foreclosure inventory for a long time.

I like to watch the HBO show True Blood, in that show vampires are open in our society and they have human friends or lovers or companions who protect them when they are asleep and provide blood for them, those humans are called fang bangers 

It seems that so many companies out there now have conferences, special memberships for REO agents, REO colleges or programs that would make you a powerhouse, etc. 

I was very surprise that with less active inventory, increase amount of agents trying to break into the REO industry and still lenders being very conservative with their loans, some companies that were closed to agents in the recent past are not opening for new membership. I keep getting emails from new AM or REO clubs, programs, education etc. promising to help me get to the top of REO and become the next power REO agent on the planet.

I am sure some agents will fall for that and will pay to "play, learn or network" I used to do the same, when I started in the REO industry I wanted to learn from the experts, I paid for classes from someone who didn't know much about REO, but knew how to hype and sell their crappy education. I paid some AM who after a while disappeared and I loss some money, I paid to go to conferences with thousands of agents to learn more in overcrowded classrooms or to hear some AM about their procedures,etc. Actually I met some great agents and some clients at those conferences, but not at the classes.

At the last conference that I attended I saw agents paying $500 to go party with "asset managers" I wonder if it is worth to do an investigation if those "asset managers" were getting a kick back from the party organizers, or if in fact they are asset managers at all. 

I see too many REO "Vampires" out there, they need their fresh blood to live and there are so many REO fang bangers out there giving it to them. We have to be careful and do our research, that is one of the beauties of this forum, we can come here and learn about new companies, new programs, share our experiences, etc. 

Unfortunately lately we haven't seen many of that going on, except for few regulars, then it has become a place to repost Activerain blogs, to advertise agents and products, etc.

There are legit products and legit education companies, we have to learn which designations are the ones that most reputable, which designations will help us to open doors, I know at the end is up to us how we develop and do business, but we need to help each other to save money, time and effort,. that is the garlic that keeps the Vampires away.

It's time again. Curious about how many distressed properties there really are in Palo Alto?  Despite what you may be reading these are the homes for sale or sold on MLS as Short Sales or Bank Owned.

Sold: 

Short Sales: Single Family Homes  3

Short Sales: Townhome or condo:  2

Bank Owned: Single Family Homes  2

Bank Owned Townhomes or Condos  4

Active:

Short Sales:  Single Family Homes  1

Short Sales Townhomes or condos   1

Bank Owned Single Family Homes   0

Bank Owned Townhome or Condo    1

Pending Sales:

Short Sales: Single family homes  2

Short Sales: Townhomes or condos 1

Bank Owned  Single Family Home  0

Bank Owned Townhome or Condo   1

As you can see the number of distressed properties for sale is continues to be extremely low. This small number of short sales and reos are not enough to have a major impact on the market as they do in many other markets.

If you have any questions about short sales or bank owned properties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

This year I have been completing numerous BPO's for homes in my area. BPO is an acronym for Broker Price Opinion.  Broker price opinions are a valuation service that real estate brokers can offer to banks.  Performing these BPO's has only strengthened my ability to properly assess how much a property/home is worth in today's market conditions.  Completing BPO's in local cities like Janesville, Milton, Beloit, Evansville, Elkorn and Madison has given me a unique view into the intricacies related to each market.  I also have a better understanding of how the banks determine their home values when it comes to short sales, pre-foreclosure decisions and REO properties.  The article below explains in greater detail what a broker price opinion is.

Regards,
Michael Collins - Broker
Short Sale & Foreclosure Resource

What is a Broker Price Opinion?

When a bank or asset manager obtains a new foreclosed listing to sell, they immediately need to know the home's value. Typically a bank will assign one to three agents to evaluate the approximate selling value of a home. These banks expect each agent to submit three comparable sold listings and three comparable active listings as well as an estimate of what the agent thinks the home will sell for.

A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:

• Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
• Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
• Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
• Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price.

Why Do Banks need Broker Price Opinions?

Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.

Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report.

Article Source: http://EzineArticles.com/1844386
Author: Brian Anthony

FOR IMMEDIATE RELEASE

PRLog (Press Release) – Apr 28, 2011 – Michael Collins Completes Prestigious RSD Designation to Specialize in Bank Owned Homes



April 1, 2011 Michael Collins, Broker of Rock Realty in Janesville, has earned the prestigious Harris Real Estate University Certified Real Estate Owned Specialist Designation (RSD), having completed extensive training in the techniques necessary to secure, negotiate and sell Bank Owned Properties (REOs). This REO training is invaluable during the current recession, especially in housing markets where foreclosure rates continue to climb.

A property becomes an REO if the original owner fails to pay their mortgage and the lending bank is forced to repossess it. The bank then reaches out to qualified REO designated brokers and agents to sell the home and recover their investment. Without access to experienced REO Listing agents, lending authorities must continue to hold onto the foreclosed property as an investment loss.

“The Harris Real Estate University RSD designation has been invaluable as I work with banks and lenders on complicated BPO & REO assignments. In Janesville Wisconsin, an increasing number of homes are in some stage of foreclosure. And it is happening with homes of every price range,” said Michael Collins, “It is so rewarding to be able to help banks rehabilitate these homes, get them back on the market, and find eager homebuyers so we can improve the condition of our neighborhoods. My RSD training through HREU has enabled me to work with more lenders, move more properties and get some of these vacant homes sold!”

Tim and Julie Harris, founders of the Harris Real Estate University in Las Vegas, NV, said “Realtors such as Michael Collins with the HREU RSD designation have valuable training in REO properties and can help banks find qualified buyers using our extensive techniques. Through our in-depth training and continuous education programs, these agents better understand market conditions that will help lenders appraise their properties through a BPO and eventually sell their REO inventory.”

The Harris Real Estate University opened in 1998 and provides REO agent training through webinars, teleseminars and teleconferencing. Agents can earn their HREU REO Listing Designation remotely from their offices all across the nation. The RSD is the premier designation for Realtors who develop an expertise in Bank Owned properties.

“Our goal is to prepare our enrolled agents for the increasingly competitive REO market. It’s becoming more difficult for uncertified agents to out-sell our graduates. Our comprehensive RSD Designation gives them everything they need to gain an edge over other agents in their communities,” Harris said.

If you feel you are in need of more information about REO properties, or if you are a lender looking for a certified Bank Owned Property Realtor, call Rock Realty for more information at 608-921-8536. We also offer in depth BPO (Broker Price Opinion) services.

Specializing in the sale of REO homes and commercial properties in the Madison, Beloit, Evansville & Janesville areas, Rock Realty lists homes for sale in Dane and Rock County. Contact Michael Collins at 608-921-8536 for more information, or visit www.rockrealtywi.com

Original Blog

Wisconsin Short Sales
Madison Wisconsin Short Sale Realtor®
Janesville Wisconsin Short Sale Realtor®
Beloit Wisconsin Short Sale Realtor®

I have received several emails and contacts from agents asking about a newly formed group that is soliciting memberships by the name of US REO.  They are asking for over $2000 annual in dues to "join their membership".  Their benefits are nicely laid out on their web site and there is nothing there that I can see that is worth 10% of their $175.00 per month dues.  I can find most of what they offer for much less or free for that matter.  We network with other REO Pros right here so why would you want to pay them for this service?  It seems like every one of these "member only" groups has a claim somewhere that would make you think that they can expose you to vendors and lenders to get REO Listings so let me ask you this, WHO HAVE YOU PAID TO GET LISTINGS?  I have been listing and selling REO's for over 20 years and have never once gotten a listing from a pay to play or "platinum" upgrade from any platform.  I get them the old fashioned way.  I send out resumes and signe up for BPO & REO sights each and every month, month after month, year after year, and work my way up the food chain.  I have two successful REO Branches and even in this slow time I am still listing and selling multiple REO's every month. 

BUYER BEWARE....If someone wants you to pay an annual fee, monthly dues, or upgarde fee only do this when they can guarantee you work. I bet not one of them will make this guarantee. I know I have been there and done that and all I got was less money in my bank account. Getting listed on some directory on someones web site is NOT going to get you business.  Good old prospecting will.