REO Properties 's Blog

REO, Foreclosed Properties. Slowing down?

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Mon, 08 Jun 2009 12:37:45 -0500

The REO listings seems to have slowed WAY up and/or almost stopped. I'm guessing the banks are trying to work out loan modifications and/or short sales more and more.

I keep hearing there are a large amount of foreclosed homes waiting to come into the market, in the area where our office is located. At first I heard it would be the first part of May, then it was the middle of May. Then it was June 1st. Still nothing. I received a couple of homes but both are still occupied and it will take 60 to 90 days before they become listings.

My best guess is that we still have 2 to 3 years of selling foreclosed homes and doing short sales. But....since interest rates are so low, a lot of first time buyers are looking again. This is great news. For people that have been renting, now is a GREAT time to buy a house....if you have decent credit and a steady job. It's a huge sale going on right now.

Buy a house, don't buy a car!

REO, Foreclosure from Washington Mutual, now Chase

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Fri, 05 Jun 2009 17:47:08 -0500

If I could have one wish......just one wish, it would be that someone from Washington Mutual, now Chase would call my office from their REO division. Someone that I could tell the following completely 100% true story to. Someone that could make a difference. A senior manager.

I will make this as short and too the point as possible.

In December 2008, about 6 months ago, I got a listing from an asset management company. A nice home, a higher end home, move-in condition. This house was listed at $1,500,000 just a couple years ago. When I got it, it was to be listed at $675,000. After two weeks we found a buyer, an offer was made. Everything went well EXCEPT making contact with the Asset Manager. She would not return phone calls. She would not return emails. After a week I contacted her supervisor. I hate having to call anyones supervisor for anything. She was MEAN. I don't know what else to say. She was as bad or worse than the Asset Manager. Finally after 3 (THREE WEEKS), we had escrow opened for $650,000. The buyer was well qualified. Put $20,000 down. Everything went well. A week before escrow was to close, the buyer and lender told us they needed an additional 2 weeks to get a few things done. Should have been no big deal. It happens all the time. The asset manager said NO. Not unless the buyer waived there right to have their $20,000 ernest money refunded if it did not close. They said no way. They walked away.

The same house JUST closed escrow 4 months later, with another broker (they took it away from me when it expired) for $454,000. ***** Washington Mutual/Chase lost $196,000 ***** Because the asset manager did not like me, because I called her supervisor, because she would not extend the escrow 2 weeks. Because she would not answer her email or call me back. I wonder how often this happens?

I have never received another listing from that company since then. Even though I sold a dozen of their properties for them. That Asset Manager probably placed me on a BAD list. The asset manager knows there is no way I could ever report her or talk with the rep from Chase bank.

One wish......for a CHASE bank person to call me. Sure. LOL.

REO, Foreclosed Properties and Email

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Wed, 13 May 2009 12:15:07 -0500

I'm curious as to what others think about people that use YAHOO, HOTMAIL, GMAIL, or other on-line free email accounts for their business.

Personally, I really think it is UN-PROFESSIONAL to use a YAHOO, GMAIL, HOTMAIL or another of these free accounts as your business email.

I have my email set up to automatically direct any email I receive from one of these accounts into my junk file. I do look at it once in a while but for the most part, they get deleted everyday. 99% of the junk I get (SPAM) comes from these type of accounts. I get about 200 to 400 junk emails everyday.

I realize I might be losing some real emails from some real clients but for the most part, I have only seen this a time or two in the past two years. I use the following footnote when sending an email to anyone using a free email account:

"Please note that because of excessive SPAM and confidential information while working with REO sellers (banks), all emails received from Yahoo, Hotmail, Gmail and other freely distributed email accounts are delivered to our junk email files and deleted daily.

When sending any email of importance from one of these type of accounts, PLEASE CALL the person to confirm it was received. We apologize for any inconvenience this may cause."

If anyone wants to use it, please feel free too.

REO and Foreclosed Properties - Out of area agents.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sun, 19 Apr 2009 13:50:23 -0500

Our office has not had a new REO listing in about 2 months. A headline I just read states "FORECLOSURE NOTICES SOAR, FORECLOSURE SALES DROP". Interesting.

I have noticed that many REO listings in our area (OAKHURST, COARSEGOLD, MARIPOSA, BASS LAKE, AHWAHNEE, RAYMOND, etc.) are now being assigned to agents from out of the area. This is very common with Fannie Mae and Freddie Mac properties. The agents typically come from Fresno, Madera, or Merced, some 40 to 80 miles away. Some things that are common with the agents that receive assignments for our local area:

1) Many of these agents DO NOT place the homes in our local MLS. This does the bank/seller a huge injustice. The agents are only placing the property in the MLS where their office is located and the bank/seller gets a copy of the MLS printout and has no idea the property is being marketed POORLY. My office belongs and pays the fees to belong to the FRESNO MLS, the MARIPOSA MLS, the YOSEMITE (YGAOR) MLS, and the MAMMOTH LAKE MLS. *** BANKS & ASSET MANAGERS *** Make certain your asset is being marketed properly.

2) The properties are often valued wrong. The listing agent has little knowledge of the unique conditions that accompany a foothill or mountain property. Many have no idea what a water well is, or a septic tank, or a land survey. Things you do not come across in the city.

3) I have found many homes listed by a Fannie Mae or Freddie Mac agent and the power, water, propane, etc., is not set up or turned on for inspections. How the agents are "GETTING AWAY" with this is beyond me. I was assigned a listing after the originally REO listing agent did not sell it, when I called the water company I found out the prior agent had never put the account into their name and the amounts were adding up monthly. My office sold the house within 45 days, once it was marketed properly.

REO Companies, Asset Management Companies, etc.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Mon, 02 Jun 2008 13:46:47 -0500

Here is something new.

I have been selling REO's for quite a while now. And for many different companies. But one company recently gave me a task and I said "no more".

The asset management company assigned me a property. I sent my crew to do the trashout and paid them their $500 and submitted my invoice for reimbursement. Then we did the interior clean. I paid them and sought reimbursement. Same with the yard care. Etc., etc.

So then this asset management asks me to get "2 bids to remodel the kitchen, paint the interior, replace the flooring, etc., etc. and get the 2 bids from contractors within 5 days".

I tried. I really tried. I called several contractor I know and worked with before. They said no. They were done bidding and not getting the work. Then I started in the phone book. I got a bunch of no thanks. They said they were tired of bidding on REO's and not getting the work or the seller would use the bid amounts as credits in escrow for a buyer.

I finally got one bid just after the 6th day. (Please note I was in contact with the asset manager and told her 5 days was SHORT notice). I sent her the bid and the first word out of her mouth was "where is the other bid"? Not a thank you, when might you have the other bid. It was 'where is the other bid". I turned the question around and asked her if she expected me to pay the $15,000 to the contractor and seek reimbursement from the asset management company? She said yes, that is the way they do things. It took me one second to process that bit of information and tell her "NO". I don't want your listing. On this house I might have made $3,000 to $6,000 in commission, when and if it sold. And they wanted me to front over $15,000 for 30 to 60 days for them, a company I know very little about, a company who fights me over a $300 locksmith charge, a company that takes well over 60 days to reimburse me sometimes.

I was mad. I told myself I don't want this companies listings anymore. I sent them an email and said no more, thank you very much. I had sold two homes for them and received 2% of the selling price as the listing agent on two homes that were well under $200K.

I REALLY enjoy working with Countrywide and Wells Fargo. They do business smart, they treat their REO agents like humans, they listen, they reimburse in a reasonable time, etc.

This other company treated me like I was trash, expected unrealistic timeframes, reimbursed so slow I wondered if I was ever going to get my money back.

The object of this story is to vent and tell all the other REO agents that might read this, don't let these small asset management companies treat you badly. It is not worth it. I work 7 days a week, often until well past 9pm in my office and always do the absolute best I can for every asset management company, lender, bank, etc., that I am working with. Most of the listings I have had in the past 12 months have been sold in 60 days or less if they are priced correctly.

OK. I'm done venting. Have a great year!

Realty Trac, Res.net, and similar companies.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sun, 20 Apr 2008 16:21:37 -0500

I would and could certainly appreciate some information, thoughts, recent experiences, etc., on Realty Trac and especially Res.net.

I have talked with Realty Trac on the phone. My thought is they have really nothing to offer me. All they seem to do is have a place to market your properties, maybe provide an occasional lead on a buyer. However the buyer has to pay a fee. and you as the agent have to pay a fee? And they "sell" zip code areas? Am I correct on my thoughts about Realty Trac? Just a place to list your listings and they want a fee from both sides to make anything happen?

I was contacted by an Asset Manager recently that wanted to discuss possibly marketing some of their listings but they said I would have to join Res.net, which certainly is not a problem. When I went to Res.net to do some research, all I found was a web page that wants $250 right away. I found a link that stated, information about the company but it simply took me back to the first page that said "log in" here and pay the $250. Well.....I'm not about to pay $250 to anyone until I can figure out what I will get for what I pay. Another thing that scared me was that Realty Trac had a big icon on Res.net's web page. Is Res.net just another place to market your existing listings? Or can they provide an avenue to get more listings?

We have a real strong marketing program in place already. Foreclosure listings that we receive from lenders are getting offers in as little as 2 to 5 days. Which is why I'm thinking Realty Trac may be a waste of time and money for us. But I can't find much of anything about Res.net.

Anyone have any thoughts or comments?

Thank you!

REO/Foreclosure business continues to be good.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Tue, 08 Apr 2008 20:01:13 -0500

You know what most people first say to me when I tell them I sell forclosed homes? They ask, "don't you feel sorry for the people that lost their homes"? Of course I do. I would not wish that on anyone in this life. But.....let me say this. Almost every single home that I have been able to learn the history on the prior owner tells me two things. #1 is they had nothing (no money) into the home. They took out a 100% or more loan and simply walked away with nothing much to loose. A big "ding" on their credit score. A friend of mine recently said many of the people that lost their homes paid rent for a few years and moved on. #2 is they seem to have all owned expensive cars/boats/toys and refused to sell their stuff. I am not kidding. Please understand this: I am not trying to be harsh or mean or anything like that. I am just stating the truth as I have seen it so far.

Home value. An article we wrote for our local newspaper.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sat, 26 Jan 2008 17:21:35 -0600

http://www.sierrastar.com/features/story/14335440p-14851488c.html

Foreclosures/REO's/Foreclosed Properties and the current market.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Fri, 25 Jan 2008 21:31:23 -0600

It's been a while since I have had time to write much of anything. In the month of January I got married. I started my own real estate company, REO Properties in Oakhurst, CA. It snowed and our truck is stuck in the driveway right now! That's another story.

Anyways.....I decided to stop giving away a part of my commission to my business partner since I was doing 100% of the work and I was already a broker myself. The only reason I went to work with him in the first place was I thought I'd market one or two properties and he already had the signs, a business name, a business license, etc. Little did I know I would have 25 to 30 listings in 6 months. I was out there in the public eye building up his company, marketing his company and doing all the work. So I spent some money and started my own company. As each listing I had with him under his business name has been modified or extended, each bank has switched them over to my company, REO Properties. Thank you Wells Fargo and Countrywide and several others.

Locally, (Madera, Fresno, and Mariposa) the real estate market is still declining but in all honesty, the lower priced homes in the $190K to $300K range are still selling pretty well. The mid priced homes, say from $300K to $600K are sitting on the market for a while (120 to 270 days or more). Most of my listings are in the lower price range, from $200K to $300K. I have had a lot of success in marketing and selling higher priced homes too, in the $500K plus range. The lower priced homes are marketed different the the higher priced homes. Obviously your looking at a different target audience for buyers for the price point of each type of home.

I now have two agents working with me (actually I'm working for them) in our office. Normally, I don't work with buyers. If someone calls me regarding one of the properties we have listed, the first question I ask is if they are currently working with a real estate agent. If they say no, I ask them if one of the other agents in our office can help them. Here again, don't get me wrong, I enjoy working with buyers and if someone wants me to represent them, I will. No problem at all. The other agents simply have more time to spend with them showing properties, both our own listings and any listing with any other office. The best thing ANY agent can do for their client is find them the best house possible, whomever it's listed with. Our agents believe that just as much as I do. My time is best spent marketing the properties we have listed, working with banks, vendors, contractors, county offices, etc., getting the foreclosed property ready to be sold.

Trashouts at foreclosed properties

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Tue, 27 Nov 2007 21:59:13 -0600

Recently I have seen some real interesting properties. It's amazing what people leave behind when they loose their home.

I've seen more than one pool table. Several spa's. Homes full of furniture, pots, pans, dishes, etc. What I'm seeing is the lenders and banks are being extremely generous in giving people time to remove all their personal items. Some people take everything out quickly while others just walk away from everything.

Recently I was retained to market a very nice property. It was nearly a million dollar home a few years ago which for this area is on the high end of value. The lender had me contact the prior owners, which I did. I talked with them several times. In the first week after we spoke they removed all their expensive furniture. But....they left everything else, clothes, food, pots, pans, dishes, family photos, etc. I called and called, left notices on the door, etc. No contact what-so-ever from the prior owners. They just dissapeared. The lender gave them over 90 days and were patient beyond belief. So we were told to get a locksmith, do a lockout and evaluate what was left. What we found were several boxes of illegal drugs. When we found that we called the police at once. It turns out the owners were well known to the police and it was no surprise at all. The prior owners are no doubt.......long gone.

A good thing happened here though. Several of the Police Officers are interested in buying the home! It won't sell for a million at this time but if the lender will list it at a good price, maybe we can sell it quickly to someone that will be a good neighbor.

Foreclosure and REO's.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Tue, 27 Nov 2007 21:32:05 -0600

Sorry for not writing anything lately but I have been so busy I just have not had any time. I currently have over 20 active listings, all foreclosed properties and up to 4 in escrow at any given time. Plus I'm still doing 1 or 2 appraisals per week. And all the BPO's and inspections, and etc., etc. Busy is good. I usually start around 8 am and often find myself working until 7 or 8 pm at night and I have been working on the weekends too.

On December 6th, I'm going to be the guest speaker at our local MLS talking about foreclosed properties. So if your in Oakhurst or Mariposa, please stop in!

The name of our company is REO Properties. Currently we have three agents including myself. And I'm always on the lookout for new agents.

REO & Foreclosure with Wells Fargo

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sun, 01 Jul 2007 10:21:52 -0500

I enjoy working with Wells Fargo and doing REO listings for them. Everything is done through their Internet portal and their system is very good. Doing REO's is a lot of work and sometimes I wonder why I like doing them. As an REO agent, you have to "front" a lot of your own money and then you get reimbursed, usually within 30 to 45 days. You need to put the utilities in your own name or your business name. You generally don't make as much commission as you would on a "normal" listing. You also need to pay for and pass their required classes to become approved with them, and this can be expensive, but it's a great learning experience.

One of the things I like about doing REO's is that your not dealing with a home owner that believes their home is worth far more than it is actually worth.

The way Wells Fargo does things makes sense and their people are very knowledgeable in what they do. They provide good support to their REO agents and respond to questions in a timely manner.

**** UPDATE 07.09.07: I have been contacted by many people asking for information, namely phone numbers and/or email addresses on whom to contact to become an REO approved agent for Wells Fargo. Unfortunately, I do not have that information. All contact with Wells Fargo is done through their portal. I suggest anyone that is interested contact their local Wells Fargo lending office. Sorry, that's the best I can offer.

Home inspection -vs- appraisals.

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Wed, 06 Jun 2007 19:32:43 -0500

I recently did a one hour class for new real estate agents and was amazed that many of them really didn't know the difference between an appraisal and a home inspection. I also find that many home owners and consumers don't really understand the differences.

A home inspector evaluates the structure of the house, & gives feedback about other systems such as the roof, plumbing, electrical system, heating and A/C units, insulation, doors, windows and other items.

An appraiser is a professional person who can tell you what your home is worth. An appraiser comes to your house and list the number and size of the rooms and the extra items, such as a fireplace, porch, pool, or garage. The appraiser will compare your home and property to other homes that have sold recently with similar features. Most appraisers also perform a cost approach which estimates what it would cost to reproduce your home with a new home, minus depreciation. The appraiser then estimates what your home might sell for and gives you his or her opinion of value. This is called an "appraisal."

An appraisal is an estimate of what amount of money your home may sell for.

Appraisers do not set values. They interpret the market conditions.

On being an appraiser and a real estate broker

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Wed, 06 Jun 2007 19:11:01 -0500

I wrote a little bit about being a real estate agent in a prior post. I thought I might compare it to being an appraiser.

I have heard other people say it's easy to obtain a real estate license. I think that is somewhat true but I will also say it is not easy being a successful real estate agent. I believe you learn most of what you need actually doing the job. Some of this is also true being an appraiser.

Obtaining an appraisal license (at least for me) was more difficult. I passed the test on the first try but I thought it was far more difficult than the real estate salesperson license. What I learned while taking the required education outlined the basics of being an appraiser. It exposed me to the terms and different types of appraisals. Since I already had a brokers license, much of it was the same. I also was a commercial and real estate lender for 15 years at several banks so I was well versed in the "talk". I was fortunate in that I also have a Bachelor's degree in economics. So I guess I would say it would be difficult for me to imagine someone with little or no real estate experience becoming an appraiser. Possible....yes. But difficult at best.

As a new appraiser you should expect to have little or no income for at least a year as you "learn". You may think you know it all but it takes experience to become good at it. I'm very much, still learning. I worked with a certified general appraiser for about 8 months doing a lot of complex commercial appraisals. I discovered that while I enjoyed that, I enjoy doing single family homes far more. Not because they are easier, (which of course they are) I just enjoy working with the home owner, the lender, the real estate agent, etc.

I'd have to say it's probably twice as more difficult to become an appraiser than it is becoming a real estate agent.

I still love doing both!

Appraisal Sketching Software

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Tue, 05 Jun 2007 09:53:25 -0500

http://www.rapidsketch.com/

I have been using ClickForms for my appraisal software. I originally purchased Clickforms because it was suggested by another appraiser I know and work with. While the actual software works just fine, I have found the company to be lacking in their support and helpfulness after the initial purchase. Others I have talked with have had the same problems, while other appraisers think they are just great. I guess it's a personal preference.

Anyways, the sketching program that came with the software expired after a short trial period and Clickforms wanted a rather large amount of my money to continue using it. I found something far better!

Rapidsketch (see the link above) is a great program and the cost is less than many others. They let you try it out for 90 days free. A full version for 90 days free!

I have been using it for a while and it works great! It's easy to use and I no longer dread having to do the sketch portion of the appraisal.

And their Tech Support and willingness to help is second to none. This company is awesome!

If you are looking for a really good sketching program, I suggest you try RapidSketch.

On being an appraiser and real estate broker

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Tue, 05 Jun 2007 09:31:15 -0500

I thought I would post a few comments on being both an appraiser and a real estate broker.

First on being a real estate salesperson. I have heard many people say they wanted to become a real estate agent. It's a great career but let me say it's a lot of work. People sometimes don't realize how much work is involved in being a sucessful real estate agent. How many diverse things you need to know to be sucessful. First you have to obtain your license. Then you have to learn the area you will be working in. Around here that means a large area and at least two different counties and the differences they have. Then you need to learn about septic systems, private wells, propane, topography, easements, CC &R's, HOA's, etc, etc. Once you have a basic understanding about the area where you will be working, then you have to market yourself. Advertising, attending MLS meetings, going on caravans with other agents. Become involved in the community where you work. Join Rotary, Chamber of Commerce and other service clubs. It is also helpful if you have at least a basic understanding about the loan process. Talk with lenders in your area, get to know them. After awhile you might discover your cell phone rings 7 days a week at all hours of the day. Being a real estate salesperson is........a lot of work.

To be continued.

Unrealistic comps

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sat, 02 Jun 2007 11:14:57 -0500

I am both an appraiser and a real estate broker. Recently I was asked to perform an appraisal on a unique property on large acreage with a large home. I performed the appraisal and the lender said he could not use it because the market comps were priced too low and I put a lot of emphasis on the cost approach. USPAP states when a property is unique, often the cost approach is the best method to use.The Realtors came back and asked me to use comps that were not even close to being comparable. Since I don't want to loose my appraisal license, I said I could not do what they wanted. The moral of this post is to tell other appraisers out there, don't let the Realtors pressure you into doing something that is not ethical. It's not worth losing your license. We work hard to get our appraisal license and often the agents simply don't understand the appraisal process. As an appraiser, I don't set market values, I simply interpret them.

2670 E. Westfall Road Mariposa, CA 95338

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sat, 02 Jun 2007 10:52:01 -0500

Here is another foreclosure sale I have listed. This home is approximately 1,370 sq. ft. on over 5 1/2 acres. It has 3 bedrooms, 2 baths, and a 2 car garage. It has room for horses and other animals. The home was built in 1995 and is in very nice condition. Just a little cleanup is needed. It only takes about 30 minutes to drive to Yosemite from this beautiful mountain home. There are many Pine trees and Oak trees all around this property. The list price on this home is $288,900. Please call or email if you have any questions.

49878 Canoga Drive Oakhurst, CA 93644

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Sat, 02 Jun 2007 10:36:04 -0500

This home is one of my foreclosure sales. The home is in very good condition. It has 3 bedrooms, 2 baths, a 2 car garage, decks front and rear, approximately .25 acre, is close to schools and shopping and only 15 miles from the south entrance of Yosemite National Park. Please call or email if you would like more information on this home or any of my other foreclosure properties. List price on this home is $259,900.

Active Rain is.......Awesome!

REO Properties Scott Runtzel - Broker & Appraiser (REO Properties ) — Fri, 01 Jun 2007 19:13:55 -0500

Finding a better word than calling Active Rain awesome was difficult. I enjoy reading other profiles and finding out what other people in the real estate world are up to. I have talked with several people locally that I found on Active Rain. Overall, it's a great place to communicate with others in the same field.