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The Reasons Why We Do Not Have High REO Inventories

The business head lines today read, “US Labor Participation Rate at Lowest Level in 30 Years” or “US Labor Participation Rate at Lowest Rate Since Carter Administration” and yet, I am trying to figure out why my REO inventory this year has shrunk to pre 2007 bubble bursting levels. To make this point a little more pointed, let me share a little statistic from the Bureau of Labor Statistics. Our current unemployment rate is 7.3% and the last time we were at 7.3% was December of 2008. Now, think back to December of 2008, think of your REO inventory….are you at that level today? I would venture to say, likely not. Are you still confused as to what my point is? Well, let me say it this way. If you add in the participation rate with the unemployment numbers, you get a “real” unemployment number of 9.4% and the last time we were at 9.4% or higher was May of 2009 thru November 2010 so, think back to you REO inventory then….are you at those same levels today? Once again, I venture to say….likely not.

So, how is it that we have a “real” unemployment rate at or higher than the worse unemployment we have had accordingly to the Bureau of Labor Statistics in the past 4-5 years and yet, we don’t have a correlated REO inventory?

Well, I am no economist however, I have some speculative theories, let me share.

1. Obama Administration Homeowner Assistance Programs: Obama has directed HUD and the US Department of Treasury to stop the foreclosure crisis by implementing several foreclosure avoidance programs through joint department efforts like the Making Home Affordable programs. Do you know how many entitlement programs there are? Likely you don’t so, let me share…..
   1. HAMP (Home Affordable Modification Program)
   2. PRA (Principal Reduction Alternative)
   3. 2MP (Second Lien Modification Program)
   4. HARP (Home Affordable Refinance Program)
   5. FHA2LP (Treasury / FHA Second Lien Program)
   6. UP (Home Affordable Unemployment Program)
   7. EHLP (Emergency Homeowner’s Loan Program)
   8. FHA Forbearance
   9. HECM (Home Equity Conversion Mortgage)

So, you had no idea…did you? Granted, my blog isn’t long enough to go into details on each of these programs with you however, for more information you can call the NSC at 1-877-622-8525. The Obama administration has used all of these foreclosure avoidance strategies in a very similar way the Community Reinvestment Act set up , built up and ultimately collapsed our economy in 2007 with the bursting of the real estate bubble. Oooops, “did I say that?” HELL yes, I did.

That’s right, the reason we don’t have REO inventory as REO Professionals is because our President has decimated our industry by artificially and manipulatively used foreclosures as a political tool for re-election of himself and his party. Sadly, most of the American public don’t understand what this does to home values……so, let me explain. It artificially inflates home prices by restricting legitimate inventory from hitting the market place. It sets up our country for a 10(+) year trickling of these vacant, distressed, properties to the market place. Ok..sure, it can be argued that by doing this we are stabilizing the housing market and sure, I will relent and say….it does however, only for the short term. In fact, it makes things a little worse because, we end up sitting on inventory and God forbid, another economic crisis hits or the current one drags on for longer than expected and we end up with more and more and more and more water behind an aging, over burdened, crippled, dilapidated damn that is ready to blow.

Think of the housing crisis as a man mad lake with one side plugged up by a huge damn. Think of the water in the lake as all of the houses that are distressed, under water, risk of foreclosure. Right now, our lake is so full, we have foreclosures literally spilling over the top. Our economy…the damn, is barely holding and with a growing “Shadow” inventory of REO homes, high unemployment, high “real” unemployment and these continuing foreclosure avoidance / rescue programs……we will have a seriously problem, eventually.

Rock Realty Client Testimonials

"We found Mike online, and, due to positive reviews, phoned him with a request to view houses in the Madison area. We gave Mike no more than one or two days notice, but he was happy to devote the whole of his weekend to us. Our entire house-hunting experience proceeded in similar fashion. We were hunting for houses long distance, so we would wait until an opportunity to travel to Madison presented itself, phone Mike, giving him one or two days to prepare, and show up to view houses. The process took roughly one year to complete. It was long and difficult, but Mike was always pleasant, never complained, made an effort to make himself immediately available, and was never pushy.

Mike is not like many real estate agents who simply want to make a sale, any sale. Instead, Mike made an effort to help us make an honest assessment of the properties we viewed, often pointing out problems himself. Mike left us with no doubt of his honesty and his dedication to his clients.

In addition, since we were shopping long-distance, Mike, with some help from his associate Bethany (who we found to be similarly pleasant and eager to be of service), even took hundreds of high definition photos of properties which he viewed in our stead, often with only a single day's notice. Mike, or one of his associates, would then promptly email the photos to us to view.

During the house-hunting process we changed our minds a number of times, imposed last minute requests, and even had some near melt-downs, but, through it all, Mike was responsive, cheerful, and level-headed. We cannot overstate how hard Mike worked on our behalf. We highly recommend him to any home buyers."

Graham S. & Janet H. (Middleton, Wisconsin 53562)
Rock Realty Home Buyer Client

Thanks for the compliments, and Congratulations on your new home Graham & Janet!

Looking to purchase a home in Wisconsin?? Contact Rock Realty! We would love to help!!

I had a listing that was “chosen for alternate marketing” …AUCTION. Now comes the new LA. This is after 3 months of pre listing tasks and only 2 weeks of marketing with the original asset management company. The original LA was a 1500.00 min commission to the LA. Not really all that bad on a 32K property. Actually a very fair commission if you don’t break it down by hourly increments. The auction LA comes and it is now a new commission. 800.00 minus the fee so it comes to 645.00 for the LA. The day the property went to the auction e mails began arriving. A BPO , new photos , a property condition report, bids for repairs and several other “requirements” now on the auction platform all waiting for completion by me. Meanwhile the other emails began. Several of the auction minions began directing all in different directions on their separate tasks. At least 3 demanded the new BPO be e- mailed directly to them. Each not knowing the other was requesting the same task. Now I am not going to bore anyone with all the miss step,  lack of communication and disrespect these auction companies have involving the Listing agent.  I am not going to delve into ALL of the downsides of these assignments when they go into the “Auction world”. Most REO agents have their “own war stories” to attest to on this subject. Suffice it to say there are too many issues for me to discuss here and now. I will skim over just a small amount of BS in the Auction process. The Auction company needed me for anything and everything they needed and nothing in anyway beneficial or even in consideration of me. They removed my sign on the first day, thus removing the ability I would have for a local buyer to contact me directly. They never communicated with me, never sent me the offer or even the accepted contract, never informed me of the closing agent and never once kept me informed of a property that I was claimed to be the listing agent on. Finally 12 hours before they had scheduled closing  the escrow agent  informed me I had to pay a “past due sewer bill of 124.00 or this would not close. This came via e mail at 4:30 and closing was to be at 9 AM. I had no contact numbers no e mail addresses other than this escrow agent’s.  I had previously checked for any past due bills and saw all were paid. Since no utilities were on at the property due to missing plumbing I was a little confused by the 124.00 newly discovered bill. I called and the escrow agent and got no response. (What a Surprise!!) The next day I called the city for the “past due” sewer bill amount that was said to be holding the closing.  The person I spoke to informed me that it was not a sewer bill but a trash service bill that follows the previous owner not the property. It was assessed in 2010. It had no effect on the property or the deed.  Now here we go. If I had paid that bill it would have been on behalf of the previous owner. No reimbursement would have been given to me and I would have been out 124.00 making the commission on the entire listing dwindle to 397.00 for all the work I did. I made up my mind in that very moment to refuse to do even one more of these auction assignments. I would rather work for nothing for 3 months than worked for pennies for 6 months. The auction companies need the Agent to keep the utilities on, keep doing property checks and to pay any bills that are discovered in the last hours prior to closing. They need us to keep the property in the MLS. They need their website on the MLS to direct local buyers to them for the auction. They need us to do all the work they get paid for. This sale was 16000 K. I had an offer for 21 K days prior to the auction.  The auction company charged the seller 2700.00 auction and another 1500 for management fees a total of 4200.00 on a property that sold for 16 K!! The auction in turn was paying me 645.00. The auction company also charged the buyer a premium of  5 %. So for all my work the auction company received 5000.00 and paid me 645.00. (Again only 397.00 if I had been dumb enough to pay the 124.00.) The banks are willing to pay these auction companies well over 6 %. In fact this was a 33.2 percent fee of the total selling price!! On top of all this the original Asset Company also was paid a fee for their participation in the asset process!! Auction companies do not have employees in the area. That is our trump card here. They have to have an agent. So does the seller. So why do we work for pennies when we see the banks WILL pay absurd amounts for the property disposition for only minimal work by the auction companies?? Why do we ever agree to assist the auction companies who continue to use us? All REO agents may think about  declining the assignments when they are chosen for “alternative disposition” by way of any auction. The asset managers love when you do this. The auctions companies are in direct competition with them. .After the above mentioned auction I refused the next one. It was taken from the auction company and given back to me PRIOR to the auction start date for traditional marketing on the MLS. Not participating in the auction process is a very small step in gaining some of the self-respect we have lost.

I have a client who hasn't made a payment in two years. His loan mode was to crazy to accept. So they agreed that they would do a short sale. Well the client decided not to move forward with the short sale till he at least got a notice of default. Its been now 4 month that nothing has happened. Then in the last month the client got a call from the bank offering to give up the property for $5,000. The client said NO. I want at least $10,000. The bank has not responded. No this is Wellsfargo. Not  small potato. Just figure. They delay is something that shows the banks hand in the game. I have two other REOs that have been sitting empty. They where going to put them on the market and nothing in the last 7 months. I have contacted the asset company and no response what so ever. Now why is this happening? The story about the banks are holding off is the reason. Now this bank is US Bank. Again not a small potato. One last one. I have a listing with PNC bank. Its vacated 3 months ago. And waiting for a clean out approval. And nothing. The old owner is suing them stated that they took her property in the from her.  So its tied up until they clear it out but the funny thing is that they got a lock out on her. Just figure. Everything is tied up with attornies who are still making a fortune with the legal battles and the banks not wanting to pull the trigger. Time will tell. I just seam on CNN that the word on the street is that the housing market increase is in jeopardy. Now do your homework. What is that about?

Cheers

Paul Conti

Legacy Real Estate

San Jose, ca 

The Wisconsin housing statistics are in for July of 2013. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

Wisconsin home sales and prices both grew in July, outpacing the solid rate established for the first half of 2013. Sales of existing homes for July increased 17.3 percent over July of 2012, which is stronger than the 11.4 percent rate of growth established in the first six months of this year over the first half of last year. Home prices also continued their strong rate of appreciation, increasing 9.0 percent in July over last July, to a statewide median of $155,299. Prices for the first six months of the year were up 7.7 percent.

“It’s clear that 2013 is shaping up to be a very strong year for Wisconsin housing and the indications are that these trends will continue,” said Renny Diedrich, chairman of the WRA board of directors. "We’re at the peak of the Wisconsin home selling season, with nearly 43 percent of all sales taking place between May and August in a typical year,” Diedrich said.

“This is very strong median price appreciation and it’s consistent with national trends,” said WRA President and CEO Michael Theo. Theo said statistics from the National Association of REALTORS® show that the median sales price of single-family homes nationally increased 12.2 percent in the second quarter compared to the second quarter of 2012, which represents the strongest year-over-year increase since the fourth quarter of 2005.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales & prices have been increasing over the past few years. Both Dane and Rock counties are showing marked improvements in the number of homes sold and the price at which they are being sold at. This summer has been really hot for the properties that are priced right! There's been a large increase in sale prices, as you can see below.

I'd be happy to show you any homes currently listed for sale. Feel free to visit: WISCONSIN HOMES FOR SALE to search for current properties listed on the MLS.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

It's not dead, it's gone in to hiding so the industry can recover from the onslaught of politicians with nothing else better to do but "save" everyone and, in doing so, cripple an entire industry. Not to mention them going against one thing that is supposed to happen with a capitalism economy; right alongside success is also failure. Companies fail and get rebuilt. People fail and homes, cars, boats, etc. get repossessed by the banks. It's the capitalistic circle of life!  Industries are built on this circle. From mortgage brokers to real estate agents. The irony is that many of their saving programs failed and we will be right back where we were. In the meantime, how many in our industry will now fall? The current administration only saved a few but in doing so they caused a quite a few more to fall. How is that progress? How is that change? To make it worse, those that were saved only failed later. Don’t get me wrong, I am not saying there weren’t some serious issues in the foreclosure world. There was fraud, invalid foreclosures, and a few other problems. The government, with the National Mortgage Settlement, made those at fault pay to the tune over $51 billion. However, that still doesn’t change the fact that foreclosures will not die so long as we have capitalism. Banks will still lend, and, for many various reasons, people will still default, and the banks will repossess. We won't have what we did 5 yrs. ago but there will be plenty to go around and if another bubble bursts I bet that there will much less of a noticeable celebration in the industry that makes money from it......after all, we wouldn't want to give the politicians another opportunity to grandstand at the expense of the real estate industry.

Now, speaking of politicians interfering. One of the first things done when the current administration took office was a moratorium on foreclosure activity. All banks that had foreclosures were ordered to stop processing them. Next come the reviews, audits, fines, etc.. (all of which were dealt with as mentioned above and the National Mortgage Settlement) and here we are a few years later and they are now finally getting back to where they can proceed with business, which does mean finally processing those properties in default. Interestingly enough those orders did not include Fannie and Freddie with whom the government has a significant vested interest. What’s the point you ask? Well, have you seen Fannie’s profits for the 2^nd quarter? $10.2 BILLION! Yes, that’s billion with a B. So, in essence, the government shut down all of their competition and reaped the rewards. How would you like to shut down every real estate agent in your market area and take every listing out there for nearly 4 years? Pretty slick if you ask me.

I have a webinar to teach in an hour so I better end the rant. I will close by saying what I started with, that REO’s are not dead, but merely in hiding. Banks want to keep a low profile on their foreclosures activity so they won’t have politicians interfering again. Wouldn’t you if you had to pay $51 Billion the last time they interfered? In addition, if you don’t really believe me then understand I have been doing this for 10 years and I know patterns when I see them. Keep an eye on all of the reports and you will see some that state foreclosures are down while others state they are up. Why the confusion? Well…..good question…why? 

One of the most challenging tasks in real estate is REO's. Bank-owned homes or “real estate owned” properties are often due to foreclosures while some have been foreclosed for quite some time. One needs to be a tough salesman to be able to market REO’s successfully. REO agents are definitely more complicated and harried than “normal” real estate agents. More often than not they would need the help of an experienced virtual assistant knowledgeable on how to work with REO properties. To give you a clear understanding on the significance of REO VA's, here are the top 3 services that REO VA’s normally offer to real estate firms or private realtors.

Online Listings Management

Indeed, managing REOs can be quite a challenge. You are not only dealing with foreclosed properties but might also be dealing with a property that requires maximum attention. With the number of REOs on your plate, you simply cannot do it alone and this is where a reliable virtual assistant comes in handy.

What will this do the landscape of short sales and the default servicing business moving ahead? I know that Altisource already uses in house brokers to sell REO's in their portfolio, as well as using the HUBZU platform ( created by a former HUD Employee) . Will this lead to a roster of agents that homeowner's will use for short sales? Will This lead to a roster of agent's for ALL Reo's , in Altisource's in house Roster?

any thoughts

Was talking to an agent who advertises as a buyers agent for short sales. She has a huge following of investors now. Told me she never has less than 100 offers outstanding but only closes 3 to 5 per month. I have 33 years in biz and have done 3500 BPOs but very few shorts. Can you tell me why this ration should be so small? My only half educated guess is she shotguns lowball offers and they grab whatever works?

I know starving agents who would LOVE 3 to 5 commissions a month and would probably write 200 offers to get that but all in all what kind of time would it take to be actively in 100 offers out at any given time? Would it be worth it? Wouldnt all thse crap offers help clog up the system and make it harder for all the rest of us with legit offers?

If you have your REO Systems in place and you are experiencing growth, have you considered an REO Team?

If so, what would you consider looking for as you build your team? I have just chosen three tips for this post. There are many more, but I find that these three are important to building a successful REO business.

1. Experience

2. Education

3. Integrity

Experience

How much experience does the potential member have in doing BPO’s? What asset companies have they dealt with and for how long? What about tasks such as Utility set up and ordering services from your vendors? When it comes to the closing transaction tasks, how much experience do they have in dealing with escrow/title companies, lenders and co-agents? These are just a few of the question you should consider when building your REO team.

This is important because the REO market is different for every REO agent. And it is crucial to have a good amount of experience in dealing with asset companies, asset managers, banks, title companies, lenders and other REO agents. I have found that there is a basic flow to an REO transaction, but sometimes there are exceptions. And I have found that learning from that exception, adds to my REO experience. And I can add this to my REO process to reach a successful transaction.

Education

Training is so vitally important. Would you consider adding a team member to your business who already has been trained on various REO portals or someone who you have to train? Time is critical, especially when it comes to tasks such as BPOs or determining occupation status. Do they know the criteria for searching for comps for the BPO?

And when it comes to the contract to close tasks, how much training does the team member have in using various online transaction management systems? Such as EbrokerHouse, SettlementRoom, RELAY, TransactionDesk, TAZAREO, and others? Again, your time is important and having a member who is proficient in using these systems will save you time and money.

Integrity

Enough can’t be said about this topic. Simply put, everyone needs to be honest in their business dealings with one another. I feel that this is a foundation in a truly successful business. If a member is cutting corners to try to get the job done, it will come out in the end. Just a quick example. If a bid (quote) is submitted by a vendor for a repair on the REO property, don’t change the amount when submitting it to the asset company. I have known of this to happen and the person did think they were getting away with it. And since it was just a small amount in the beginning, it was not discovered. So the person felt safe and increased their bid amounts. But when the asset company discovered this, all monies had to be refunded for all of the bids. And of course that agent lost their business with that asset company. A hard but powerful lesson.

I hope these few tips: Experience, Education and Integrity can help you in your search for a successful REO Team.

To your business success!

Roxanne

I am sure everyone has experienced a drastic change in the state of REO in the last year. I am now dealing with more and more corporate investors who are trying to sell properties as short sales after purchasing the note for pennies on the dollar, non profit and for profit investors trying to resell properties in markets even after rehabbing for an unrealistic value, too short time on market  and to a buyer that does not qualify or will not live in certain locations. I am seeing less and less traditional REO properties, there are some banks I have not done work with for a year, and normally I sell 10-20 properties a year from them. I work all sorts of types of real estate, more so in the last two years, and I am finding that the average loan to close time is almost double in some cases. Even the short sale market, which is a market I deal with often, is now changing. I have always done a lot of BPOs, but lately I am experiencing very pushy clients, some clients call me 20 times a day and call my office, often to ask mundane questions like have I inspected the property. Really? I have days where I spend more time on the phone telling these companies that yes I have inspected the property and yes I will get the bpo in today.  My agents are not REO agents and are working different types of venues like property management or with buyers. I am now being forced to look at different options, since the BPO forms are too long, too hard and keep getting qc rejections. I am also down drastically this year from last in terms of sales in general, even my traditional sales take nearly three months to close on average, it is almost as bad as 2009-2010.  I am so busy doing free work for these companies that I cannot focus on my brokerage as much as I need to and the expenses are not going away.  I am now supervising rehabs, being responsible for draws, being asked to pay for past due water and sewer bills up front, inspecting the final work more than once, and being asked to market in areas that are way outside of where I normally work. Many of the asset managers are actually very nice people who have confided in me that inventory is very low and they are working nontraditional REO markets to get inventory. Huge companies are pooling assets off to these companies and this is where much of the reo is coming at the moment. These corporate investors are in some cases good to work for, others are not.  On the other hand, I have non communicative asset managers who are rude, nasty and treat me like dirt. The best relationships I have are with the smaller banks, they are easy to deal with and are much more one on one, although inventory is low in that area as well.

Buyers are being given misleading information about the market, however I hear and see daily that what is being reported by the media is not what is happening on the ground. I am not sure what to do or think, however, I am revising my plan, I am pulling out of certain areas and will not market in certain areas based on drive time and I am going to start focusing more on the traditional market. I will also sit back and wait and see what else will be going on. I suspect we will see more corporate entities moving into the market and I am not sure how I feel about that.  

Just got back from a mandatory REO agent conference. Cost 149.00 plus 2 days of really aggravating reprimands,, threats and some really demeaning reality. Oh and 109.00 per night hotel costs plus 2 days away from all of my other work which pays the bills. The cost to be a chosen REO agent . 499.00 in the first few weeks for "training" Funny considering I have been doing REO work longer than the people who wrote the "training course". (and they were not even a Realtors) Then another 199.00 to be added on the platform. Cost of the signs and marketing material which are mandatory for the asset owner.

So far 1200.00 in expenses - income 0 for this new company, one of the now 15 I work with. One I have worked with for 16 years now.

What I learned, well as a veteran REO agent of over 16 years I learned I have gone backwards. I am a broken person who has sunk to the lowest depth any agent ever imagines. All REO agents have become mere robots/ tools of the REO asset owner. As Dangerfield quipped “No respect no respect at all!!” 16 years ago I was paid very well in the REO field. Not many agents wanted to list the worn down un-kept "dirty properties" Fewer yet wanted to show clients these low priced fixers. So I listed them and almost always sold them and was paid 6.5 % with no fees. No platform fees, no referral fees, no fees at all. I was also paid a management fee to oversee the trash outs clean ups and maintenance. A 2500 minimum to assist in a cash for keys, 50.00 for the listing BPO for that asset and for each BPO I did after getting the listing. The BPOs were a one page 15 minute form with 3 sold and 3 actives. One liners and a few comments on the bottom. No status reports were ever called for and there was no mandatory anything other than just sell the asset. I was valued and treated as a skilled professional by the asset owners. The list price was set and if someone , anyone made an offer in the first 24 hours that was close to the list price, well it was sold. No long drawn out drama filled waiting period or wild price expectations. All utilities were put directly into the asset owner’s name and mailed by the utility companies to that asset owner. I paid for nothing, billed nothing and was never expected to be responsible up front for a single thing the property required.

Fast forward to today. I am expected to have 5000.00 in reserve for each property I am assigned for repairs , past due taxes, past due HOA fees and anything else that may be required. I am expected to bill all my expenses and pay 5.00 per invoice, wait 6 weeks to 90 days or even longer to get reimbursed, Of course I can not charge interest or a service charge. Just lend the money free of charge to multimillion dollar corporations. I am expected to do weekly status and condition reports, weekly full property checks with pictures, monthly BPOs free of charge within 2 days of the request. Now that BPO is a 3 page form, more detailed than any full appraisal. It takes about 2 hours to complete and has some really ridicules demands as well. I now an expected to do cash for keys and even assist in evictions all free of charge. All utilities and security deposits for them are in my name and mine to pay. I now get 2% to 2.5 % commission maximum(many are a straight 1000.00 for any property 100 K and under) with a 140 to 175.00 charge per listing for platform fees at closing. Out of my commission I also pay a referral fee to the assignment or asset company. I have to carry 500,000, to 1 million E & O. Which is very expensive if you do CFKs or eviction work, which is mandatory for all REO agents. I also have to carry a personal liability policy for 4 million and show proof of both every 6 months to a year. I have to pay for at least one yearly background check. Pay a yearly platform fee of no less than 400.00 yearly . A yearly education course fee of no less than another 400.00 and now mandatory conferences at my expense no reimbursement and no escape from attending, they are mandatory! Now I have "report cards " with categories for everything from BPO % to DOM averages to Owner occupant versa investor sales. I am expected to print or buy all the asset owners marketing materials including signs and brochures for their mortgage divisions. Send them buyer leads , also known as recaptures and give them monthly reports of the leads I send. Now I am reduced to a non respected very used, controlled and low paid unwanted necessity in the REO world.

So every time I see or hear any agent say " How can I get into REOs?" I shake my head and say "be a greeter at Walmart. It is easier, much more profitable and yes you can keep your self esteem and even some dignity too."

Yesterday, today , what will it be tomorrow? Well my guess is an REO agent will be expected to work for free. Don't laugh or doubt it HUD actually did do this for a while. It is coming if we do not stop and say "No more!!" I am now devoting time to re establishing my conventional Real Estate practice. Let the starry eyed REO agent wanna bees have the REOs and let the asset owners ….well you know where I am going here.

First, there are thousands of agents so hungry that they will step up to the plate of a dollar. If the servicers/enders/bpo companies can get us to do it for a dollar---good on them? Its smart business , no? We have no one to blame but our own whore industry, to be blunt.

I predict that their will be few future REOs for any real estate people except occaisional small to medium servicers who make deals with a few huge real estate franchises. What will happen to all the inventory?  Mostly, I believe it will be sold in bulk to giant money corps who will KEEP THEM AS RENTALS! Its already happening. Second, like some gov auction sites we may see all these houses going into a central sales pool site instead of the trust deed owners having to take time and expense of figuring out which agents with whom to list.

Now we are suddenly seeing more BPO orders than in the last few months, mainly because of new supreme court decisions making it easier to foreclose. Even  the horrible, lying, cheating, fraudulent (am I mad at them?) MERS thing is turning out to have judges look the other way. I know people who have been in 'the process' one way or another of being foreclosed on and some have not made payments in up to three years. This cant go on. Lenders/servicers have re-loaded their guns for big bear now and several million more owners will become renters, forcing record rents even higher.  Hey, not bad for those big players who will own a lot of what again----Yes class! RENTAL HOUSES. Our world is changing folks. Real estate is changing. I was a combination real estate and mortgage broker since 1980 but closed the mortgage biz in 2009. Now with our MLS membership steadily dropping, I wonder about going  to shoe repair school!

ResNet membership does generate some business for me, so it is worth it -- but barely.  After subtracting from commissions earned not only the cost of ResNet membership but also the additional overhead costs, it often comes out not much above break even.  Property assignments through ResNet usually come from outsource companies, not from banks directly.  Consequently, the outsourced asset management company (AMC) takes 1% or 2% from the listing commission.  That hurts!  Outsource AMCs seem more likely to reject offers for less than list (i.e., almost all offers) thus lengthening the DOM and increasing my overhead costs.  Furthermore, many of these AMCs are difficult and slow when it comes to reimbursement for rekeys, utilities, lawn care, property preservation, etc.  Their procedures and demands are detailed, time consuming and difficult.  My billing clerk tries to convince me that AMCs intentionally make it complicated and then repeatedly reject invoices we submit in hopes that we will give up and "eat" the costs ourselves. 

Amidst the recovering real estate market, it can be observed that the usual word-of-mouth tactics employed by private homeowners is not helping. If it does, this usually leads to a decrease on your price tag. If you want to sell your home in a fast and efficient manner with the price you desire, listing it with a competent realtor will definitely do you good. These people are seasoned professionals when it comes to selling houses. They do more than just show properties or negotiate offers to help close a sale. Below are some things that these realtors do to make your house more sellable.

Help Improve Your Home’s Stature 

Competent realtors do not just list your house, match it with a potential home buyer and be done with it. Often, these people ensure that your home is ready for that open house event or for buyer viewing by making use of their connections in the field of home improvements. They can assist you in improving the curb appeal of your home by contacting their contacts in plumbing, roofing, fencing, painting, landscaping and so on. Keep in mind that buyers are mostly concerned of a home’s interior and exterior appearance. A fresh coat of paint, a clean roof and exterior walls, updated plumbing system, and so on will help augment the appeal and face value of your home. With their connections, they can help find you general contractors which can perform all the needed improvements at a much affordable rate to suit your budget.

Experts in Pricing Your Home Right

An important aspect in selling a home is in pricing it right. Realtors are experts in estimating the value of a certain property with their experience and skill-set. They are proficient and up-to-date with important considerations like target market, location, demand and supply, and the type of house. They are trained and experienced in property evaluation to demand appropriate pricing to ensure that your home gets every bit that it deserves.
 
They Help Sweeten the Deal

Another way to make home-selling more attractive to buyers is by offering perks. Credible realtors know precisely how to play around the selling price or add-in any other special deals that will help make the buyer realize the added advantage on this particular investment. Some realtors are also connected with service contractors and home insurance agents. They can use those connections to offer an extra mile in their services as leverage in letting the buyer perceive the deal as an “added value” service. Some also offer transferable home warranty (with the consent of the homeowner) for at least a year. This helps cover maintenance and warranty on appliances and other home fixtures—and this helps sweeten the whole deal. 

Help Gain Home Buyers Trust

Do take note that 90% of all real estate transactions occur with the assistance of realtors. This could be due to the reason that these professionals have an ethical obligation to disclose hidden or latent shortcomings or defects in a home. Buyers want an honest-to-goodness deal and you as a seller might be perceived being biased when asked for details on your home.

The Bottom Line

Selling a home can take extra work and knowledge. You may put all your efforts in getting your home in excellent shape but when you have no knowledge on marketing it or knowledge on the present condition of the real estate market, you will most likely find yourself empty-handed. With competent realtors, you can effectively increase the odds of getting your home sold on the market.

Res.net asked for 735.00 for their yearly fee.I paid 300.00 last year and my membership expired.  I spoke with Mandy at Res.net and she stated that you could no longer communicate with the pro membership which is 325.00 yearly , but you will have full access with the pro plus membership for 700.00 yearly.  Didn't they have a premium membership at one time. 

Though there is no doubt that a real estate virtual assistant can fill a huge void in managing your business, choosing one that works well with your objectives require extra attention. You need to dig deeper on personal traits and characteristics that will make them deliver the results you need. Instead of hiring a freelance VA, pursue top caliber agencies which scrutinize their representatives before recommending them to clients. With expert eyes to nitpick a VA’s credentials and accreditation, you can guarantee receiving the services you need as desired and to your satisfaction.

I have been selling reo properties for over 20 years and things were great. Now for the last 3 years most are gone and all short sales are being sold. But what happened to all those vacant homes that are just sitting there? where are all the fc that should be happening to the loan mods that couldn't be helped? Any ideas from anyone when we might see the next wave of vacant properties to hit? Also where is all the inventory from these banks?