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I just made 2 offers on a Fannie Mae property (same property different buyers) where the situation was multiple offers. The agent stated that the asset manager accepted an offer and did not do highest and best. Also, stated that they where in the process of countering with another agent. I made the offer the second day the property was on the market. My queston is does Fannie Mae work that quick with offers and even though the offer was in counter would it not still have gone to highest and best offer?

This agent is also one of those that never feels the need to respond to calls or emails. Not only when you are doing offers but to also see if LB's have been put in place for BPO's. When I questioned why the offer did not go to highest and best I immediately received a phone call and of course the answer above was giving. Just sounds fishey and I think my offers where put in file 13. Am I thinking wrong and could this have happened the way this agent said?

Uh-oh.....some Fannie Mae Direct and Outsourced agents have been very bad, are you one?

I got an email, like many Fannie Mae Listing Agents did that said......

"In January, Fannie Mae initiated a “secret shopper” pilot designed to collect accurate data on the knowledge, responsiveness, follow-up, professionalism and effectiveness of brokers and agents listing Fannie Mae-owned properties. Over a four and a half month period, our secret shopping vendor reviewed several hundred listing brokers/agents on a broad range of measures."

I just got one thing to say, IT'S ABOUT TIME!

Well, here is what they found.....

• "60% of direct Fannie Mae brokers and 57% of outsourced listing agents did not respond to requests for information within 24 hours. 35% of the time, the agent/broker did not respond at all after multiple attempts to make contact.
• For those that did respond to an e-mail, 36% of the outsourced agents and 50% of the direct brokers did not respond with the information requested.
• When asked for more information on HomePath Renovation Mortgage, 21% of the outsourced agents and 23% of Fannie Mae direct brokers could not provide information in a clear, competent manner.
• When contacted, 59% of outsourced agents and 71% of direct brokers did not ask the caller about their specific needs."

Now, the email had some other details but, this is what they said they were going to do......

"Over the next few months, we will be reviewing and updating our processes for including brokers in the Fannie Mae network and our measures for how brokers are evaluated. Expected changes include measurement of brokers’ responsiveness and professionalism as well as the more traditional performance metrics.

A newly revised and very comprehensive REO Sales Guide (formerly known as the NPDC Listing Broker Guidelines) is due to be released shortly. In the meantime, for a refresher on some of our policies and initiatives, take some of the short training sessions available at the link below."

Now, with all that being said, if you are a Fannie Mae listing agent, outsourced or direct, you better get on the ball and stay on it because, you could end up loosing your inventory to me...........seriously!

Do you SOLVE?

Really, how do you approach your business? Is it a hands on operation? Can both sellers AND buyers/ their agents contact you? Or do you have a different person for everything that makes it hard to determine who does what? Adapting this from a famous home improvement retailer (I have inside information on this program) , I have come up with a mantra that I think we should post on our office door:

S eek the best values for a property

O btain solutions for sellers and buyers

L ook for opportunity to preserve a transaction

V alue your contacts as a living breathing person and not as a source of income or just a number

E ngage collegues to assist in marketing property

and remember your clients are always FIRST

F ind movtivated realtors,asset managers and personal sellers

I nquire about the services they need and what is their goal

R espect the approach and different opinions; acknowlege the other's comments

S olve (of course! see above) Provide sound solutions.

T hank and always thank. Time is valuable, thank again!

As we are thanking here I also want to thank Absolute REO (Sal Rosco) for rapidly responding to my communications. Someday I hope to be on board with Bridge Asset and hope that I can thank them too for allowing me to deliver excellence for them. Hope too that they got my package. I may be small and not have the machinery of some other collegues here on ReoPro but I have the heart of iron and the reserve staff to get the job done! Isn't dedication half the battle?

I wanted to jot down some observations on the current REO market from the lenders' perspective.

First, I am not a standard lender. I lend on REO properties, Short Sales, and Auctions. I am just like you. I do not do loans, I move assets. I move them with products, quality approvals, subject knowledge and experience.

I am constantly looking to grow my business with experienced agents and at times that has me cold calling. I am always shocked at what I hear from listing agents. I hear 60% of the time it is not their responsibility and it is the job of the buyer to come with financing. Unless, the asset manager requires an approval from their lender. I hear that the buyers always have their own financing and that is good enough for them. I hear them say they are not interested and then they hang up.

The truth is, there are great agents that "get it" and when I talk to them the conversation is fast and I applaud them for making this process easier and faster. I just do not understand the others or believe they think they are above the loan officer. I am calling you as an expert in this field. I am offering you an opportunity to link up and add value to your asset manger.

Part 1. TEAM WORK

There are 3 major players. You and your asset manger, Buyer's agent and buyer, and the Loan officer. You and your partner know your game and are experts. The buyers and their agents are usually naive to the REO process and come in with a standard closing on their minds and an FHA approval from the other player, a Loan officer.

The buyer’s agent comes in with lists of repairs and a 30 day contract. They have the approval letter and their loan officer who closes every loan for every property they sell and know he can close in 30 days. That LO comes with great rates and faith in his agent. The problem is no one told him this isn’t a regular closing. No one said FHA is harder to close on a REO. The buyer pays for every re-inspection, repairs may take weeks to get approved, extensions will be needed, rate extensions cost money too, delays are not abnormal, just because you sign in 30 days does not mean you CLOSE in 30 days. You now spend all day holding everyone’s hand and dealing with more problems and not focusing on moving more assets.

What I do is offer to help you with the unknowns. Take that same subject and add a Sellers REO loan officer. I set the standard early with a DU approved buyer that supplies all income and assets up front. Then, I tell all parties about what the process is like. I will ask about the property condition before sending in a loan that will not fit the property. I become your advocate. I let you get on with your business of preparing properties, doing needed repairs, and adding listings. I will lead the way for the buyers and agents to closing day. I will act as your eyes and ears in the process.

There is a breakdown when this process is handed off to people with little experience in REO. There are agents out there with great intentions that get slowed down by these parties. It is your asset and why shouldn’t you be able to say to someone this isn’t your every day purchase and the loan is important? Save your buyer and yourself time and money and hand it off to someone who understands the process. The fewer unknowns you have in your process, the easier it is.

Ask this, can I move this asset with LESS energy, faster, with less problems, earn referrals, increase volume, and focus on selling properties while not being a part time loan officer?...or...Am I doing it the hard way?

Coming next...

Part 2 will be what different approvals and loans do for different properties

As you can imagine the answer to this question depends on who you talk to. For me, I have personally experienced doing BPO's in a rural setting and talked with numerous agents all over the U.S. who work in very urban settings.

My experience leads me to believe that doing BPO work in a rural setting is much more limiting. It is difficult to find comps that just aren't there, even after going out up to 10 miles from the subject property. If you go further than this than it is likely that your vendor rating goes down and your QC issues go up.

One thing that has really helped me was to not guess at what I was supposed to do or assume what I was expected to do when given a challenging rural BPO. Instead, I had absolutely no hesitation in calling up the company that gave me the BPO order. I'd ask for their advise and guidance on what to do in the situation that I was up against. Someone in their QC (Quality Control/Quality Review) department would likely get on the phone and walk me through which parameters I should use as to avoid getting my order kicked back because of inappropriate comps.

Another thing that was extremely beneficial to me was to seek out each companies 'Guidelines' or their set of 'rules' that they wanted for me to adhere to when doing BPO work for them. Most times I found this information was listed somewhere on their website. If for some reason I couldn't find it easily then I would give them a call and ask where I could find it. By doing this, it makes you look good and helps build a rapport with the rep that you talked to.

Who doesn't want to do their job to the best of their ability? Sometimes we just need a small compass to help guide us safely and confidently to our destination.

Please feel free to share your thoughts on this too. What are your experiences with this?

Warmly,

Nicole Ocean

Certified Real Estate Instructor/Founder of BPO University

I always wonder how I became lucky enough to get that first REO property over 10 years ago. Definitely a different market than what we have right now.

Now I watch agents send out stacks of resumes, do BPOs for less than $45 and they are getting the business. Sometimes I question whether or not the banks, asset managers and investors realize exactly what they've gotten?

I tend to think not, particularly when I have a new REO agent in my office stated the following: "I don't spend a lot of time on those BPOs, I just pull up comps in the neighborhood and use the 3 lowest recent sales -- I don't want to do the banks any favors." All I could do was look the agent in the face and say "Wow." All the while reminding myself about the code of ethics and how I would want to be treated if I were that agents client. Although our clients are large financial institutions that may not have a face, they deserve fair treatment, and not the "just give 'em the three lowest comps -- don't wanna do 'em any favors" treatment. I thought to myself, I've been in some of those lowest comps in the neighborhood you used for that last BPO, no wonder the last REO listing you had in my neighborhood was listed so low and an offer came in within hours of placing it in the MLS and guess who sold it too.

This upsets me not only as an agent, but as a customer of these financial institutions and a tax payer that has contributed, and will continue to contribute to the bailouts.

Time to Blog this morning ! What about BPO?

I have done a bunch and happy to complete them even the reward is questionable.
I have done my due diligence and forwarded as much information relevant to the subject property enough to determine a value, listing price and what is necessary to help the decision maker.

I have completed over 800 of them as residential and commercial.
It takes some time by going on site, download the photos,
pull the comparable and finally complete the order.

BPO in 20 minutes ? Probably but don’t expect too much comments and research.
It takes definitely more time. Some websites are easy to complete,
other take a long time to even upload the photos.

Easy task to complete when it is a condo with same properties around recently sold
and listed with similar amenities. Same criteria apply with SFR as tracking home
from large development. I known many BPO agent are using software to ease
and accelerate the process
but I believe that I don’t have a sufficient volume in my area,
and we don’t have too much large development with tracking home anyway.
Each property is often unique and requires more twisting
to pull appropriate comparable and definitely more adjustments
and comments therefore more time.

I have seen a few changes since I have completed my first BPO.
In a few words increase of task as more time to be completed
and fee reduction translate by less Dollars.
I am wondering if I am the only one to feel that way.
More time is required for less money to be paid!

I am trying to think about other industry such as my dentist charges me
for annual exam which is not the same cost if he has to fill up some cavities,
or I pay some money to my mechanic for oil/filter change, and the bill is increasing
if he has to do the brakes! That makes sense to me.
Apparently, that does not apply to BPO: the more you do and the less you will make ! (Recent Old Republic order at $ 30!)

The last BPO I have completed was very unique as large lot for the area,
multiple structures onsite, illegal units, unpermitted and not completed excavation…
and a lot of photos…. I have searched with planning dept, uploaded tax record,
Tax Assessor map, permit summary from planning dept. in addition of all the
other required task…. This is not anymore $ 50 worth!

This is getting more spicy when I did pull the comparable as
I have found a couple of them as Bank Owned for which I did struggle
to get little money for BPO and realize it is listed by an agent located
in another county within more than 2 hours drive round trip.

Back to office, I drove in front of a multi units which I knew to be listed
by one of these agents. This one too I have done a $40 exterior BPO.
Listed at $ 465,000 it is easy to understand a better reward
than to complete a glamorous BPO.
I am totally devastated to have seen this property:
no sign for sale, no lock box while it is mentioned on MLS,
old tire and car parts in the yard, weeds at glance, debris and trashes,
windows covered by old fabric/plastic…
all to mean “Please don’t come, don’t buy!”…
Few searches back to the office to realize 33 DOM… no open house.
ASSET MANAGER: Do you known about that ???

I still believe strongly that everything regarding the default industry is around BPO.
Nothing is done without a BPO in other words.
This is a necessary and valuable tool to maximize the recovery of asset.

I am perfectly OK to provide the best service and
I am also OK to complete a reasonable amount for free
if I have the assurance to have some listing.
Clients, asset managers, valuation companies and lenders are expecting

a professionalism, ethical and honest service.

Does it mean I have to do that for the glory?

Does it mean I have to starve with $40 fees?

Does it mean I have to be insulted to see these asset listed by other who don’t care?

Does it mean I am the only one to feel that way ?

More words about education and certification. It is never enough for sure.

The more you get and the more you need.

Some company are requiring or offering a high cost certification. Be honest!

What justifies this high expense? Are we more efficient with such certification?

Do we receive more assignment?

May be for some but I have invested a subsequent amount in certification and

education and have never seen the immediate result.

The highest certification offered by REOTrans/Equator as “Platinum”

is coming to expiration and I have already received an invitation to renew it

and encouraged to be certified at a higher level.

What can be higher than the highest ???

I have never received even one call as Platinum certified in one year. (NEVER).

The question is not even relevant: why again ???

Having said that and we can always write more about this aspect,

but a few words now about the “real” education.

The more you pay and the more glamorous the certification is, the better it is for you…

Maybe not!

At first and to be realistic we all know

that this industry in particular is changing all the time.

So your certification so high it was a year ago is probably obsolete by now.

I truly believe that a valuable education is a constant education.

There are many of them extremely valuable and affordable as NFSTI

and other are even free such as offered by Title companies,

mortgage broker or even lenders. I remember my first seminar on short sale

was presented by one Title company

and was certainly the most complete and explicit presentation on the subject

I have ever seen (for free !)

I don’t believe one topic covered by one class and five question quiz open book

will make you an expert on the matter.

Same topic is covered by one seminar and again on a different class with different words

and update will complement a good education. This is the key.

Again and again to achieve a complete and updated knowledge.

The learning process has four different levels as:

1- The lowest one as “rote learning” is the ability to repeat back

what one has told without necessary understanding …

....remember your first short sale seminar !

2- The “understanding level” is when one can not only repeat what was told, but understands the principles and theory behind the knowledge…

...your first call with short sale negotiator!

3- The “application level” is more than understand the concept

but also apply what has been learned and perform correctly…

...let say fully initiate and succeed a short sale.

4- The “correlation level” is when one is able to associate

various learned elements with other segments or blocks of learning

or accomplishment. I can relate this last one when you take the initiative

to pull out a property from auction in favor of a short sale before

it is too late and you can convince the negotiator to do so !

Wondering where I am pulling this information from?

My flight instructor certificate is the answer.

What is taught to any flight instructor by the FAA.

The final question is what should consider an Asset Manager as the most valuable:

one high certification obsolete from two year ago or

a continuous and constant education complemented by various seminars?

I would say the second choice as a common sense is definitely showing

an agent more motivated, dedicated and more knowledgeable

with the latest measures related to the industry.

Again, just an opinion!

Friday, I closed on a $322,000.00 short sale, Monday I close another for $340,000.00 and amazingly enough, both buyers, brought me "pre-approval letters" from the exact same lender.

Just so you are clear, these are 2 different homes, 2 different buyers but, both had the same exact lender. Now, the reason this is critical to understand is because, on both offers, I made sure to ask for a Pre-Approval Letter and, you would think that because both buyer's are using the same lender, the Pre-Approval Letters would be virtualy the same.....right?

WRONG!

Both were Pre-Approved but they had dramatically different letters. See below....

Letter # 1 (Pre-Approval)

Point # 1: Written by the Underwritter.

Point # 2: "Funding only contingent upon appraisal and home inspection"

Point # 3: Buyer has had credit verified and determined credit worthy

Point # 4: Assets have been verified.<br>

Letter # 2 (Pre-Approval)

Point # 1: Written by the Loan Officer

Point # 2: Funding is contingent upon verification of income, credit and employment

Point # 3: Buyer has been "PRE-DETERMINED" credit worthy (NOT VERIFIED)

Point # 4: Assets have been stated.

1 of these is a guaranteed buyer, the other isn't................can you tell the difference?

It's very important that agent's representing sellers in Short Sales educate their Seller that its important to read the "pre-approval letter" and be smart on which exact offer they take.

Many of you may have seen a new advertisement on REOPro for Bridge Asset Servicing Network and their claim to GUARANTEE LISTINGS. Obviously, this intrigued me and I wanted to learn more about this company and see just exactly what they were all about.

After some initial contacts, I was able to send over a list of questions I had for them and I am pleased to say, they responded. Below you can read those questions and determine for yourself if you want to do business with them.

I have to disclose to you that I was so impressed with their responses and with my conversations over the phone with their leadership, Steve McCormick and Angelique Norton that I completed the application and joined.

Question # 1: What is Bridge Asset Servicing Network?

Answer #1: Bridge is a single source asset servicing company….

Question # 2: What exactly do you mean you can guarantee listings?

Answer #2: ….We want to be different. With our guarantee, we are trying to put the agents at ease and affirm that we will follow through and will provide product. If your combined commission does not cover your first year annual membership cost, then 50% of those fees will be reimbursed to you. That of course does not apply to an agent that declines properties assigned to them.

Question # 3: Do I have to sign up for Equator or RES.NET?

Answer # 3: No, Bridge has its own system and that is why we require all agents that wish to work with us to attend our seminar to receive training.

Question # 4: Do you offer Training?

Answer # 4: Yes, we require that all agents come to our seminar and participate in future training….

Question # 5: I see you have a conference coming up, how much is it to go?

Answer # 5: The conference is $495.00 if paid by May 15^th. After which, the cost will be $695.00 and $795.00 at the door.

Question # 6: Why would someone want to attend your conference?

Answer # 6: The conference like all education events is a key opportunity to stay current with best practices and to network with your fellow professionals. The key reason to come is if you don’t, you ca not join the network and receive any listings as you will be unfamiliar with our forms, computer system and expectations. …we want everyone to be successful and fully understand where we all stand.

Question # 7: Do I have to sign up for Equator or RES.NET?

Answer #7: No, Bridge has its own systems and that is why we require all agents that wish to work with us to attend our seminar to receive training.

Question #8: Do I need any special certification or designation?

Answer #8: No, we don’t currently require any special designation but we do look favorably on those who have made the investment in themselves and their career to get default service certified. We will ask our members to stay current with industry standards and move toward certification in their area of expertise.

Question #9: What is the specific type of agent you are looking for?

Answer #9: We are looking for agents that like us and want to do things the right way. We want people who are dedicated and show integrity in the way they do their business, individuals that want to give back to our industry and their communities. This business is not just about making money but about improving the areas in which we work and profit. We desire to remove the blight that an REO can cause on a community and replace it with a home that is at or above the community standard filled with families that will function in that community.

Question # 10: Do I need my own money to float my listings and pay for property preservation?

Answer #10: No, we believe that this is an unfair burden to place on the real estate professional and as such, we work with contractors that can carry the rehab costs and Bridge Asset Servicing reimburses utilities etc…. on a monthly basis.

Question # 11: What is the referral fee?

Answer # 11: There are no referral fees, we believe that you earn those commissions and that it is yours alone.

Hot off the presses! Huge News for ANY REO Listing Agent....

Freddie Mac/Homesteps just announced that they will be doing live on-site interviews at the upcoming REO Expo Event for open positions they have for listing brokers around the nation. Don't miss out or waste any time because this opportunity will pass by quickly!

To learn more check out this link for all of the details: http://www.reoexpo2010.com/freddie-mac

Plus, if you looked at the above page and want to get a head start, download their questionnaire/application to hand to them live and in-person at the REO Expo do so by clicking here: http://www.reoexpo2010.com/FreddieMac_Pre-Interview_Questionnaire.pdf

Please note: They do not have openings in every state, but don't let that stop you from trying anyway. As you know in this business, there are no guarantees and you never know when doors to opportunity will open up.

Lastly, NFSTI & The BPO Automation Group will host a 10x10 booth to help promote our networks during the REO Expo convention. During the negotiations with the guys of REO Expo we were able to heat up the offer for attendees who use our discount code (REOXNFSTI).

All members utilizing this code will receive a $100 discount off the registration price.

Here are the details of the REO Expo:

• What: The REO Expo
• Who: Hosted by Housing Wire and REO Insider Magazines, MC'd by Pro Football Hall of Fame Inductee Emmitt Smith!
• When: June 6-9
• Where: Dallas, TX (Hyatt Regency Reunion Tower)
• Why: To share the latest in Default Servicing, Display new technology, learn new aspects of the REO trade, and for the Pinnacle Award Ceremony.
• How: Registration is online at www.REOExpo2010.com. Be sure to sign up sooner than later because attendance is capped and the free classes that we're being offered through the Open Door Institute and Default School are closing up fast.

Don't Miss Out....Sign up Today!

Nicole Ocean

Thank you for your interest in becoming a vendor for R & D Properties. Werequest that all new vendors make a tax-deductible donation to thecharity of our choice, The SPCA Honor Sanctuary. Please click on thelink located at the bottom of our home page to be redirected to thewebsite for The SPCA Honor Sanctuary. On the left handside of the page will be a link marked “Donate Here”. Select that linkand make a minimum one-time donation of $25. Please be sure to make thedonation in honor of R & D Properties and enter all of your contactinformation on the subsequent page. Once we receive confirmation fromThe SPCA Honor Sanctuary that your donation was received we will addyou to our database. This in no way guarantees any BPO work but youwill be entered in our system as a preferred vendor and notified whenwe get an assignment in your area.

Thank you in advance for your donation and we look forward to working with you.

R & D Properties

When a sump pump is running and pumping water from its basin to the outside, strange noises can be heard. When the pump transitions from running to shutting off, there is a loud slurping/gurgling sound as it searches for water before shutting off. After speaking with an REO agent who is listing a home in my area last week, all I could think was, have asset managers really reach the bottom of the barrel?

There is an active property, attractively priced for its location and size, that shows up contingent with a kickout. A client of mine inquires about the property and the nature of the kickout. The MLS states there is a home inspection contingency which while possible, would be unique for any seller to kickout an offer due to a home inspection in a slower market.

Upon calling the agent, she states that she is “new” and asks me how she should have updated the status from active? Dumbfounded I ask her if her client, a credit union has the option of kicking out the contract based on the home inspection, answer- no. Not wanting to embarrass, I explain to the agent that since she does business in a neighboring state, maybe that’s how they do it there. She states that she simply didn’t know and after checking, she has been licensed for 5 months.

There are volumes written and ranted about regarding agents that are trying to break into the REO business. There are viable companies out there selling education, more designations, platforms to become members of, and on and on and on. I find it insane that quality agents are seemingly overlooked for ones that couldn’t find their way out of a cornmaze!

We have experience in working with most REO agents in our area by being a major supplier for BPO’s in the Maryland market. As we see on a daily basis, REO agents are limited in time, so follow up, and returning calls can sometimes be lacking, However, these are agents that typically know their business very well. Once their business is cultivated, they are sent great distances to preserve, market and sell distressed properties. Often times too far. As agents, we have a fiduciary responsibility to serve out clients. Is there a fiduciary responsibility in selecting a qualified real estate agent that serves the market the subject property is located in? I would hope so!