Posted by Art D Segna on October 21, 2008 at 11:52am
Can anyone give me some imput on working with a Real Estate Database or a Contact Management Program to manage my listings, sales and emails associated with them. I have been using ACT for RE without any kind of luck.Thank you in advance,Art
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I am not very good at this, but here it goes anyways. Went to the REOMAC conference in Hollywood last week. What a great experience. It was everything I expected and much more. Met lots of nice people and learned a lot from the pros. I am not a member and unfortunately they are not accepting new members at this time, but I would love to become one whenever is possible, its a great organization. I went with another agent friend who is also an REO agent. Since we are in Miami, we just drove there everyday, only about 45 minutes. They had an exhibition hall and we had the chance to personally meet reps from some of the companies that we deal with, from preservation companies to asset managers. The last day we had a brokers only session where we met with some of the most experienced and successful REO agents nationwide and they answered questions and gave advice. Also the last day we attended lender roundtables and were able to interact with them. There was a friendly atmosfere, the food was good, it was just a great experience overall, can't wait for the next one.
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Posted by chris leonard on October 15, 2008 at 6:43am
Hello everybody, question to all. I just registered with about thirty asset mgmt. companies how long does it usually take to get Bpo orders?
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Pasted from my blog at http://reoangels.wordpress.comREO is fast becoming a household acronym, almost achieving the same success of its predecessors TV and USA. REO stands for “Real Estate Owned”. Typically, this real estate that has been designated as an REO is owned by the lending institution that has just finished foreclosing on the property. For a property to earn the designation as an REO, the property has to be vacated by the tenants and owners which itself is a long and arduous process.Who are the REO Angels?The primary members of the REO Angels Team include Mary Gonzalez. Ivonne Valdez, and Guadalupe Silva. Yes, there are 3 Angels only. There are male members of the REO Angels team and weshould not call them angels, because after all that would be just plain rude.What do the REO Angels do?The REO Angels manage a large portfolio of properties that are owned by the lending institutions and asset management companies typically involved in the foreclosure process. The REO Angels aide the bank in securing, marketing and selling the aforementioned large portfolio of properties.Why should I care who they are?If you are a homeowner in distress, having trouble paying the mortgage, the Angels provide one-on-one consultations to help you through the foreclosure process. If you are a first time buyer of real estate or an investor looking for some great deals in real estate, the experience of the Angels will help you in your search for the perfect investment or the perfect place to call home. Of course, the “perfect” designation takes into account the suitability of the purchase according to your current financial situation.
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If you had the opportunity to spend 10 minutes with and Asset manger, what would you say? How would you act? What would you do? Well I have to tell you my story. While attending the 5- Star conference I actually met and AM in my REO A-Z course. She was sitting at the end of the isle that I had to access to get back to my seat during a break. Since it was still a break and she was in conversation with another attendee I stayed and listened to the conversation, introduced myself and was invited to join in the communication.Well, anyone that attended 5-Star could tell you that AMs or anyone with a Red Badge was GOLDEN. ( I said I was one while standing in a food line and you should have seen the heads turn, I could have went right to the front of the line had a played the role; who knows what else I may have been offered?) Agents were inviting them to private parties, handing out CD's, Brochures, Resumes, etc.That has never been my style nor will it ever be. I didn’t give her my resume, or some fancy flyer, cd etc. I simply gave her my business card and told her that if she ever wanted an opinion from a real estate agent prospective, that is not attached to the transaction, to give me a call or send me an email. I also asked her to explain to me how AM's think to help me better do my job. That same night I got an email from her informing me that she thought what I had proposed was a good idea and she was going to keep my card.We'll guess what, she did keep my card and it's paid off and will continue to pay off so long as I keep performing. (I did run into her again at the conference and ask her to breakfast which was provided for all attendees. During breakfast conversation was about family, friends, and the awards being presented at the breakfast.)One BPO provider told me I was number 70 on there list and needed to wait for openings before I could be assigned BPO's or listings. This didn't sit too well with my FRIEND and within a day I received an email to signup and had my first listing the next day. It pays to have AM's in your corner and as friends take care of them and they will take care of you!!So if you ever get an opportunity to meet or sit with an AM at one of the many more conventions to come, sometimes the indirect approach is much better. JUST MY 2 cents, then again what do I know?? Hope you have found this helpful.
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If you haven’t started moving your business plan towards working with Short Sales, what are you waiting on? If you don’t do it now, you may be missing out.
It has been my experience and I am of the opinion that Short Sales are going to become the wave of the future, if they aren’t already. In fact, I have seen many of my Asset Mangers becoming much more cooperative to them and in some cases, creating infrastructure to get them closed in 14 days or less.
To explain my point a bit further, look at the emerging success of companies like Titanium Inc and BSG3. Granted, Titanium’s reputation is far superior in my opinion however, both companies are successful none the less. These companies basic business structure is to reduce their client’s REO inventory by offering fast, accurate and complete Short Sales. They both go about the process a bit different however, it seems to work. The similarity is that the banks are sending their at risk clients to these 3rd parties as a Loss Mitigation tool. Titanium partners with local Realtors and has a low one time fee as well as receives a referral fee upon closing, Titanium’s focus is to keep the homeowner in the home and use the Short Sale option as a foreclosure avoidance tool of last resort. Where as BSG3 sells exclusive territories to Realtors for a monthly fee based on the number of leads you want to purchase and receives a referral fee upon closing. As a matter of disclosure, I have not signed up for BSG3’s service so I do not have a direct experience as a paying Realtor with them however, I have watched their on-line promotions video, had 2 phone call interviews with their sales agents and read numerous blogs about their services. The biggest reason I don’t sign up with them is due to some advice I heard Bill Cherry a successful Realtor in Dallas Texas and frequent Active Rainer once say something to the effect, “If the lead generation company isn’t confident in the quality of their leads to only ask for a fee upon closing, then why should you be confident in their leads to pay up front for them”. It just seemed to ring true to me. At the time this blog is posted, things may have changed with their fee structure so I leave it to you to learn more about either company if you are interested in them.
My point behind this blog is, Short Sales are coming and rather than complaining about how you don’t like them, you might want to consider learning more because, REO’s will always have their place in this industry however, I am of the opinion REO’s will soon be at their pinnacle. Another point about how REO’s seem to be tapping out is the lack of banks and lenders bringing on new Realtors. Once again, this market, from a Realtor’s point of view, seems to be very closed, not that it was ever really open but, more so now. Tapped out I say. Short Sales, just starting to get warm….soon will be very HOT! If you haven’t jumped on the Short Sale band wagon by now….this may be the last call!
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Okay, gang here's what's comming down the Pike!! When this program hits the streets short sales will truly be SHORT SALES.Anyway, myself and 4 of my agents were blessed with being selected and trained during the 5-Star Conference via Webinare, to be on the 4 front of this new program that will be comming to a city near you soon. When you see the words Home Telo's approved Short Sale , these properties will close in 30 days or less. Thats right lender approved short sales!! What a concept. Not all homes will qualify for the program and there will be a screening process. To some this up in a NUT shell this is how the program will work.A BPO is completed on the property within 72 hours of completing our BPO the lender will have had a 3 rd party apprasial or BPO conducted and sets a price at current market value they are willing to except for the home. The property will then be placed on the maket local MLS and www.bidselect.com where it can be bid on. Highest bidder assuming lenders price is met, will go into contract to close within 30 days.During the marketing time the home-owner has to maintain the home, remains in the home and is resposible for keeping it up for showing. The investors/lenders etc have finally figured it out!!!. It's cheaper for them in the long run to keep people in homes, maintaining them rather than them being vacant, and getting everything of value (A/C Units, Copper, Appliacnes, Light Fixtures etc) stolen.This should bring about some stability to the market and great opportunities for first time buyers that are overwhelmed when they step foot in some of the REO homes out there. They will have to be left for the investors to pick up at rock bottom prices,because they will be the only ones buying them when these short sales hit the market. This should be a WIN WIN for everyone.So Buyers Agents, When you see HOME TELO's you better act fast, because once this gets out , there will be 10-15 offers on each property, just like the turnkey REO's. That's my tip for the month...1 of 500 out of 135,000. If you were invited to the Round Up during the 5-Star Conference then you know what this means. For those of you that don't and would like to know shoot me an email if you can't figure it out..(Staci it was nice to see you at the Round Up!)
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Q: 1- What are the risks?
A: The risk when investing in Short Sales is no different than investing in any other section of the Real Estate Industry. The better question is how does one limit the amount of risk they take on when buying investment real estate? Buy low, sell high however, stay competitive and if necessary, cut your loss early and move on.
Q: Can I end up in the same boat as the sellers and lose all of my assets - i.e. condo, pension plan, bank account etc?
A: Sure you can. If you don't manage your investments wisely and end up over extending yourself, then you will most likely end up in the same boat as the seller's find themselves in now.
Q: - How do I actually get qualified to become a short sale investor?
A: No real universally accepted certification exist for becoming a Short Sale Investor however, I would strongly advice you first find someone who is doing it successfully and have a real heart to heart conversation with them. In a perfect world, I would suggest you "shadow" a Short Sale Investor for a couple deals then determine if it is something you really want to do.
Q: - If I need to qualify for a loan, what type of loan would I be looking at and where would be the best place to get one to enable me to do short sales?
A: If at all possible, don't get a loan when it comes to purchasing Short Sales. Truth is, too many stipulations are involved when getting a loan for investment purposes. Cash is always best when buying Short Sales. If, ultimately you do want to invest in Short Sales with money from a loan, you need to find a loan that acts as much like cash as possible. In other words, a HELOC (Home Equity Line of Credit) or something similar, anything with the least amount of rules, regulations, guidelines and stipulations the better. Basically the easier we can make it for the bank to sell the property without worrying that something from your lender is going to pop up last minute can kill the deal, the better.
Q: 4 - Would a down payment be necessary to qualify for a loan, if so, approximately what percentage would be needed?
A: This questions is best answered by a lending professional, of which I am not however, the answer to this question is most likely going to revolve around your credit score. FYI: with the continuing credit crisis the country is facing, even with a great credit score, you may be asked to put up some type of down payment...with investment properties, it could be at least 10% or more.
Q: 5 - To qualify for a loan, would the dollar amount of the loan (like most loans are) be calculated in conjunction with my annual salary and debt to ratio?
A: Most likely
Q: 6 - Apart from fix up costs on the property; can you give me some sort of break down as to what other outgoing costs I might occur as a short sales investor?
A: You need to make sure you get a Net Sheet or Estimated HUD-1 from your Realtor when you are prepared to sell. This is a estimated itemized break down of each and every fee you will pay to get out from under the home when you have a buyer. This is a great way to see in writing exactly what you will likely walk away with. Keep in mind, the HUD-1 involves all the Real Estate cost, not the cost you will have to fix up the property...that will be up to you to keep track of.
Q: 7 - If I wanted to sell a short sale property after any needed fix ups have been completed, what are the best ways to sell the property (flip it)?
A: Flipping is what you are going to be doing, no question about it, unless, you plan on holding onto the property for rental purposes. By the way, you will want to be prepared to do just that and that is, rent the property. In areas where we see prices dropping monthly....you could find yourself with a debt on the property greater than what you could make from the sale so, the only real choice you have is to rent it out and try to cover the cost of your mortgage, if you get one. This is just another reason to buy a Short Sale in cash if you can.
Q: 8 - Once you get a home via a short sale and it is still occupied (with the view that the seller will leave very soon), what's to stop the seller from doing major damage to the home once everyone has signed on the dotted line - hence making it too late to go back and the seller knows it? What can be done to make sure damage does not happen in anyway?
A: DO NOT DO THIS TYPE OF TRANSACTION!!! DO NOT DO THIS TYPE OF TRANSACTION!! IF THE HOME DOESN'T COME TO YOU ALREADY VACATED.....MOVE ON! Avoid buying a short sale with a resident in the property......or at the very least, write in your purchase agreement that the property is to be vacant on or before closing.
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First off, let me just say that a short sale is a lesser of two evils. It should be considered as the nuclear option and only available to those with legitimate hardship. Now, with that out of the way, let us talk about the truth behind what a short sale does to your credit.
If you are considering a short sale, then most likely you have fallen behind in your mortgage. This delinquent arrearages has already impacted your credit negatively. So that is the first thing you need to start considering. Any further delinquency on your part will continue to negatively impact your credit.
Now, one of the biggest differences between a short sale and foreclosure is how it's reported to the credit bureaus. If you foreclose you get "debt discharged due to foreclosure" stamped on your report. A recent conversation I had with a credit expert at Experion enlightened me to the fact that Bankruptcy is the worse thing anyone can do to his or her credit and the 2nd worse thing is foreclosure. She also explained that with a foreclosure it could take you up to 3 years to get a mortgage and drop you credit score about 200 pts or more, considering the previous damage you did by the mortgage arrearages. Where as with a short sale, this message isn't there. Instead you get a message that reads, "pre-foreclosure in redemption". This can result in about a 100 credit score drop or LESS! Not to mention, once the home is sold, it may appear as "discharged" on your credit. It's also important to know, that with a short sale, you can qualify for a loan in as little as 18-20 months later.
All in all, if you have a true financial hardship and the mortgage debt burden is too much for you to handle, then the short sale may be a viable and less credit damaging alternative to foreclosure or bankruptcy.
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Hello Everybody,I was at the 5 Star Default Servicing Conference too. My experience at 5 Star was different than many other agents I guess :) I had too much fun and education and got the chance to receive RES.NET and REOTrans certifications.I know it was crowded, I know they tried to teach us the things that we already know, but the Lender/ Servicer Open House was priceless. I met with lots of servicers and lenders that I’m already working with and I was able to tell them “Hey, it’s me, Nesli. What’s up? ” :) Okay, I didn’t exactly say that but I had the chance to talk with them and ask questions. The Asset Managers were so nice and gave out their secrets (lots of little details like what you have to do when you apply with their company) which was like gold to me.One suggestion from me to you, my realtor fellas, if you ever attend these conferences, DO NOT EVER MISS THE LENDER OPEN HOUSE sessions. I was thinking to go there again next year but just for the Lender Open House. I am willing to exchange some info so shoot me an e-mail.Let’s come to the fun part :) There was a concert which was as important as the Lender Open House, the REO Speedwagon concert and I cannot tell you how much fun I had. It was intelligent to bring this group for the concert but I am wondering what does “REO” stand for? Please do not answer my question if you haven’t read all of my blog :) Well my suggestion to all: YES, it was totally worth it to go, show your face there, meet with people and get some education! Even though sometimes you cannot recognize them (like Stacie) they will recognize you :) It was great to have met with you too, Stac.I am a person who always looks at the result, “what did I gain?” I got approved with two big lenders that I have been trying to get approved with their program and this is just a start.Nesli IbrahimRealtor, SRES, e-PRO, CPVRealty Executives Dillonp: 619-254-0037f: 619.656.4500http://www.bestchulavistarealty.commailto:nesli@bestchulavistarealty.com
As many of you know I was at the five star default convention last week and now I am back with my family and animals! I had 4 things on my 5 star to do list and I am glad I got them done and then some!With that being said I am sure you want to hear about my 5 star default conference adventure!! I arrived late Tuesday night. I was elbowed in the head on my plane ride by the man seated behind me but I know something of that nature would happen. Without fail I am a target everywhere of some kind! (wink! wink!) We stayed at the Hilton Anatole. I was impressed by the size of the hotel my husband was not impressed by them not having a shuttle. that's a whole other blog that I am not going to get into.Wednesday in the Am I went down to get my new badge cause mine was wrong. Everyone there had a color coded badge and the people who were wearing red, black or green where being hunted down like deer during hunting season. It scared me a little cause I was stuck on an a full elevator everyone was blue except the guy net to me. He was black and the minute someone spotted him he was attacked. I got off asap and didn't even look back.I ran into some Internet friends by the main info area! Nesli is from San Diego. We have talked several times and exchanged REO info back and forth. I called her looking for her and she was behind me. She was looking for my dark hair and didn't recognize me. No worries I got that all week. She is a great person and I am glad to have met her! There were sooooo many people it was hard to find anyone. I guess it doesn't help that I need a new eye glass prescription and couldn't tell who anyone was till I got close.I did have 1 class that was on my to do list and that was the reo trans class. I needed it to get certified. I have used the system before so most of the information was not new. I did however get to chit chat with the CEO. Very nice man and he helped answer a couple questions that I had that were not answered during the class. If he ever needs to buy in the OC I have a great realtor for him!
Wednesday eve were 2 receptions. I went to the first one and ran into a large group of people I chat with on yahoo groups. They are in my inbox everyday and was glad to meet them. They kept me laughing, entertained, and safe.The second reception was very very crowded and I got lost from everyone I knew and was approached by many interesting parties and was about to leave when I again found my friends. I had a great time! I also got some work done at the show. CA was 2 hours ahead so I was still getting questions asked.
Thursday AM was the awards breakfast. My phone died and I forgot my charger. I had no way of calling anyone and about 4000 people were waiting to get into the breakfast. I have night blindness (it was dark in the breakfast room) and I already told you I need a new prescription so I sat down at the nearest empty table I could. It filled up pretty fast so I was not alone for long. I was chit chatting with everyone. The man next to me and I where talking about Denver and Orange County. He then told me he was the CEO of one of the Asset management companies that was on my to do list. Once he told me who he was....all the agents at the table gave him their card. I wasn't about to give him mine and have him remember me that way. We had a great conversation about his company and he asked me my opinion on a couple things. I felt bad for him cause he kept having people ask him for his card while we were talking. He was very polite and told them to wait till he was in the booth at the expo hall. Anywho.....Breakfast was great and the people who got awards were well deserving! I was impressed!
Expo hall was a zoo!! I walked around and talked to some companies but I waited to come back till it wasn't so crowded. I soon realized that there were a ton of people there to get their foot in the door with REO. Many, many people where cutting in line and pushing and it was not a scene I wanted to be in. I did however get to borrow a iphone charger from a man at REDC. They are an auction company and they had Eric Estrada there taking pictures. I charged my phone and came back down to the expo hall. Less crowded and now I could talk to the people I wanted to without having to worry about someone cutting me off. I was talking to a rep at FirstAM REO and one of my fellow active rain friends recognized who I was. Thanks! It made me smile and the FirstAM guy will probably remember me for that!I was signing up online again w/ FirstAM cause the guy said the software changed. I am with them but he said it couldn't hurt. As I was signing up I had 3 more vendors come talk to me. I even had a auction company want to hire me as a project manager. I am going to stick to REO though...I am kinda good at it. I then moved out of the hall to go find some more Internet friends. As I was waiting I started talking to this man w/ no badge and found out he is w/ another direct lender that I was hoping to talk to. I guess I was at the right place at the right time again!! I soon had to get some work done online and get ready for First Preston Round up.FP was # 3 on my to do list and I was totally impressed by this company. I am so lucky and excited to be a listing agent for them. They are innovative and down to earth. They have a contract in the works with a bank to dramatically change the way short sales are looked at and done. Again, I am so lucky, happy, excited and fortunate to be a part of their local ambassadors.There was a man there that asked 2 really good questions and turns out he is another friend of mine who likes to play in the rain! Jon is a great guy and really nice to be around. He and I got excited about First Preston together!!!Friday was the lender open house and again a crazy mad house! I was so not going in the rooms so I stayed outside and talked to lenders as the passed. I was pretty much over worked at this point and ready to go home. I did have to stay and go to the res.net cert class in the afternoon. I found Jon and his friend Mike and we sat thru the class together. They had a test at the end which was easy if you had used their system before. I was so tired and ready to get out of the hotel since I had been indoors for days i went out to the pool. Another Internet friend of mine from San Diego named Katrina and I chit chatted by the pool. My hubby was pretty tired of hearing about REO and I could tell he was more then ready to go home.I learned a some new things and I met some great contacts. I will defiantly go next year.....as a key note speaker!!! LOL!~Stacie
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Posted by Daniel Ripper on September 21, 2008 at 9:57am
Hey I just got back from the 5 Star Convention and I must say that I wasn't really impressed. It was a madhouse with about 90% agents and the rest being servicers, AMs, etc. I did however make some good contacts, pressed the flesh, and gotten an idea or two that I will put into place. I wanted to get others thoughts on who attended and what their opinons on the whole thing was. Let me know!
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It's great that you are detailing the various conferences and training events that are occurring around the country. Keep up the good work!Michael G.
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The unsecured promissory note is becoming a more commonly used tool to prevent future deficiency judgments. If you haven't experienced this already with a short sale, where you are the listing agent, be prepared because it is coming your way.
Upon bank review of the agreement they will counter the offer to the homeowner requesting them to sign a unsecured promissory note for the remaining short balance. As you can imagine, this type of counter from the bank, can throw a monkey wrench in the entire process and possibly kill the deal.
So how can you prevent the bank from requesting and unsecured promissory note? Well it's all going to revolve around percentages. If the short balance is greater than 15% to 20% of the total amount owed you can most definitely expect the bank to request a unsecured promissory note to be signed by the homeowner. It is important that this possibility be disclosed to your home owner up front when the obtaining the listing so that you don't have any uncomfortable surprises towards the end.
I'm sure your next question is why would the bank make such a demand. The first thing to understand is that the request of a promissory note is the bank's way of telling you and the homeowner they will most likely pursue a deficiency judgment if they agree to the deal. The promissory note is the bank's way of giving your client and out, of sorts. In other words, sign a promissory note today or expect a future deficiency judgment, if they decide to do the deal at all.
Keep in mind this is a business decision the bank is making, they have supposedly done the math, looked at the credit, looked at the assets, read over the hardship and determined the deal may be worth losing. This may sound crazy to you and me however from the bank's financial point of view some deals just aren't worth the paper they're written on and therefore they ask the homeowner to have some type of responsibility and the short sale of their home.
In closing, if you have an experienced a promissory note by now count yourself among the lucky few because I guarantee in this market of uncertainty the unsecured promissory note is going to start appearing more and more often in a short sale situations than it ever has before.
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Posted by Seb Frey on September 10, 2008 at 5:30am
I often wonder, how good am I doing, really? You always hear about how the asset management companies grade and score you. A few of them, you can actually see your score - but the rest? Pfft. Who knows. So long as the listings keep coming, I guess we're doing OK.This morning, I got a broadcast BPO request from a company that also does REOs, but I have never listed an REO with them. The guy who sent the request out mistakenly did not use a "bcc" - blind carbon copy; that is, every recipient got to see all the other recipients. It was interesting to see who else in my area is doing BPOs!One of the recipients did a reply-all back, and said:"The one and only time I did BPO work for your company it took more than 90 days to get paid, and I had to write letters and threaten to sue you to get paid at all. $60 for an interior BPO? Are you sure you want to pay that much? Perhaps you can find someone who will do it free of charge, just to do you a favor."Yeah, $60 is cheap for an interior BPO. But you're missing the point. Even $100 is a trifle, if you value your time. Is not the whole point of slogging thorugh these miserable BPOs to get a crack at the listing? This business is really a lot of work. I guess if you're trying to make a living on BPO fees, I can see the rancor. But that's thinking pretty small, IMO.Also this morning, I got an e-mail from an asset manager questioning one of the BPOs I did for another agent's upcoming listing. There was a big discrepancy in the square footage between me and the other agent - about 1,000 square feet. I had used the actual assessor's data for the square footage figure, which as I understand it, we're only supposed to count legal square footage. So I wrote back to the asset manager, and explained the discrepancy, sent along a copy of the assessor's data sheet, and also mentioned how when the house had sold in 2005, it had sold in-line with prices for 2,000 square foot homes, not 3,000 square foot homes.I am guessing that the listing agent for this property didn't actually look at the assessor's data, but pulled the data off the MLS. But that's not the shocking thing. The shocking thing is the image that was used for the "front view" of the property. This company uses the "front view" image from the BPO as their "thumbnail" image for the property, which they show on their consumer web site of REO listings.What was the biggest thing in the picture? The side-view mirror of the agent's car. The house itself was practically a speck, partially obscured by trees, and the clearest thing in the picture was that side-view mirror.I have a theory. My theory is that most people do a mediocre job of whatever it is they are doing. Surgeons, lawyers, physicists, carpenters, presidents - you name it, the average person in that capacity does mediocre work. Few are truly exceptional. The same is true in the default services side of the real estate business. Actually, that's also true in the traditional "retail" side of residential real estate as well.The lesson here is: don't waste time worrying about how you're doing, especially not compared to how everyone else is doing. Be diligent, apply yourself, be honest, and work like hell. The rest should take care of itself.
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No matter your opinion, is it necessary is it not, the recent government conservatorship of Freddie Mac and Fannie Mac is just another bailout in a long line of recent bailouts that have me wondering, are we still living in a free market society?
Granted, we can go on and on all day about if the government seizure of the 2 mortgage giants was even necessary however, that isn’t my point. I am just wondering why it seems lately that our government has decided to spread the losses of an industry among the people however, when that industry was riding high, the government didn’t step in and spread the wealth. In other words, when a company, giant or small, starts to fail, our government shouldn’t be stepping in and making the population pay for it’s poor decisions. This action sets up a dangerous precedent that has me wondering, do we live in a free market?
If you haven’t heard yet, you will soon but, when this huge bailout of Freedie Mac and Fannie Mae was still just a rumor, the car lobbyist in Washington were all a buz! Swarming around and positioning themselves to be the next in line for their government handout. Oh yes, make no mistake, the automobile industry saw this as a perfect opportunity to remind the government that what is good for the goose is good for the gander. You see, they to have been feeling the pinch of the credit crunch as well as a sluggish economy and not to forget those dreadful high gas prices. The argument they will have is going to be the same as everyone else and that is, “we are too big to let fail.” Well, I say, don’t let the door hit you where the sun don’t shine on the way out. No industry is too big to fail, no company is too large to let go. In my humble opinion, it is the rise and fall of companies that ensues only the best survive, much like a corporate survival of the fittest. Now, Freddie Mac and Fannie Mae are another type of beast, this is true because of the monopolist nature of their current mortgage holdings and yes, that couldn’t go ignored however, this is a prime example of Washington insiders run a muck! High paid lobbyist and close relationships with Congress and the Senate enabled these companies to do something no one has done in a long time and that is create a monopoly that now holds our entire economy hostage due to poor management.
So, lets do what we need to do to de-monopolize this section of the real estate industry, diversify the risk, create some regulation and move forward with a stronger, robust and better equipped yet smaller mortgage guarantor industry versus having 1 or 2 giants that with one mis-step can shake the very foundations of our entire US Economy!
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Back in November of last year, I did an exterior BPO on a rural property. When I do a BPO, I pretty much always do this: find "neighborhood" actives, "neighborhood" solds, and then comparable actives and solds that are ideally within a mile of the subject, but for these rural properties, the distance is often much greater than a mile.I put the "neighborhood" in quotes because out in the sticks like that, it's kind of hard to say where exactly the neighborhood is. In these cases, I generally use at least the nearest half-dozen listings or recently solds to comprise the "neighborhood."The other day, I got an interior BPO request. It turns out, I had done an exterior BPO for this property back in November of last year. This happens from time to time, and what I like to do is go back and look at what happened to the "active" listings I based my previous BPO on.In this case, there were ten listings in the "neighborhood." Of those 10, one sold. The rest all expired or got cancelled. Zoinks. And, the three "active" comparables I used formy BPO - two expired, one cancelled. Double zoinks.Let that be a lesson out there to all you sellers. Need to sell? Get aggressive. There's no time to waste in a market like this.
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Here lately, it seems I have been getting the same question over and over again and that is, “Why do banks have a waiting list to become a REO Agent?”
First of all, let me share some insight with you.
Banks are being bombarded by struggling Realtors who are looking to make fast cash in this back to the fundamentals market. The barrage of request to join the banks REO teams has brought out every type of Real Estate Industry worker, from the novice to the experienced professional. The problem these banks are having is, they really can’t weed out the true professionals and those who are faking it. You would think that a simple interview process would cast out the lackeys however, that isn’t always the case. Simply put, the banks don’t have the resources, time, energy or infrastructure to verify all the resumes, letters of interest and voice mails pleading to be on the REO Team. In fact, the banks have had such a large share of amateur Realtors that now, most have realized it’s best to only work with those they have trained themselves or only with the REO Agents that have verifiable experience through the personal relationship with an Asset Manager or Loss Mitigation Officer. So, the waiting list accomplishes more than just allowing the bank to have a pool of possible Realtors, over time it will weed out those people who aren’t going to last on their own in this fundamental market. The bank’s prospective is, if you can’t last on your own as a Realtor, why would they ever trust you with their clients. It may sound a bit cruel but, if you stop and think about it but, it makes sense. These banks are looking for high quality, high out put Realtors, anything less is just going to cost them money and time. If you are a part time Realtor because this market has forced you to take on a “real” job, then most likely you aren’t going to be the right person to take on a REO business.
Just some food for thought.
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I had to do three Cash for Keys today. And it's labor day. An REO agent's work is never done. The first one went smooth as silk. Exept that the guy didn't actually have the keys. A lot of that going around. "We never lock the doors, I don't know where the keys are." I believe it. That's how it is out here. Bucolic, like.Fortunately, I always bring my locksmith with me when I do my CFK. No keys, no problem, especially when the doors are at least unlocked.I had not actually been able to confirm with the second CFK that I'd be coming by. I'd been calling for a couple of days, but nobody had answered. Still, though, I had been in somewhat frequent communication with the occupant, and we were very clear that the CFK date was today, and he knew what was expected of him.The locksmith and I arrive at the second CFK - the front yard is just full of stuff: furniture, clothes, brick-a-brack. Fortunately, the house is indeed empty, as is the back yard. Unfortunately, the former owners had illegally converted the garage to living space and built an illegal unit in back and an illegal bathroom. Hate it when that happens. Anyway, I said hey, sorry, I can't really give you the money until all your stuff is gone. But do you mind if I have the locks changed now that all your stuff is out?They said sure, no problem, we're done. So I talked for about 30 minutes with the señora in Spanish, while the locksmith went about his business. We agreed I'd come back the next day once all the stuff was gone out of the front yard and I'd give them the check. They gave me six baskets of fresh picked blackberries from a local commercial blackberry grower. Last time they gave me raspberries. Nice folks.Next, on to Cash for Keys #3. This guy was one slippery character during the CFK negotiation. Although we were clear what his responsibilities were (e.g. to leave the place clean and with no debris, trash, or personal property left inside or outside the house) - what did I find? Well, he did a pretty good job on the inside. But the outside was still littered with stuff. Paint. PVC piping. Buckets. Garden tools. Tiles. You get the picture.A heated conversation ensued. Well, the heat was mostly on his end. He wanted me to show him the check. Yeah right! He said he'd sue me for not giving him the check. I said, "Go ahead, you won't get too far, you haven't held up your end of the deal." He said he'd finish cleaning it up today. Alas, the sun was already setting in the west, and I never do a CFK after dark, because it's easy to miss stuff. I told him I'd have to come back tomorrow.And so I shall. Tomorrow's going to be another busy day in the REO business. God bless it.
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