Tim Krzyskowski South Chicago Blog

Chicago South Suburban Orland Park, Tinley Park Foreclosed Homes

Tim D Krzyskowski (Realty Executives Ambassador (Orland Park, IL South Chicago)) — Mon, 17 Jan 2011 17:49:49 -0800

I'm approached by many first time home buyers on a weekly basis. The first thing they always ask me is to find them a foreclosed property at a great price. This blog entry will cover the initial points I try to cover when I initially consult with a new first time homebuyer interested in a foreclosure. I'm always up-to-date with the ins and outs of the foreclosure industry because I list and sell foreclosed homes for a few major banks all over the Chicagoland area. Despite taking listings from banks wherever I can get them I prefer to help buyers in my local market which is Orland Park, Tinley Park, Orland Hills, Homer Glen, Lockport, Mokena, and Frankfort.

How does the buying process for a foreclosure work?

The buying process is basically the same as purchasing a property through a traditional sale with a few minor differences. Since I'm writing this for a first time homebuyer I'll briefly cover the process.

1. A standard real estate contract is written minus disclosures, a seller supplied survey, and a seller supplied termite inspection where it is then submitted to the listing agent along with proof of funds (for cash deals) or a loan preapproval. The listing agent then submits the contract to the bank for review. Most of the time, the bank doesn't even want to see the actual contract and just wants the fine points like purchase price, amount of earnest money, closing date, any concessions being asked for (like closing costs, personal property, etc), and any contingencies.

2. Now the offer is in the hands of the asset manager. An asset manager is the person who works for the bank in charge of managing and selling properties who acts as the seller. They are usually in charge of managing many properties all over the country so it's rare to get an immediate response from an offer. When the asset manager receives an offer they will decide if they want to accept, reject, or counter the offer. Sometimes it can take up to a week (but usually 2-3 days) for an asset manager to respond to an offer simply because they are so over burdened with work. Another thing to remember when waiting for the asset manager to make a decision about a contract is that most banks nowadays don't even bother entertaining any offers (even full price or over full price) until the property has been on the market for 10-15 days. This makes sure that all interested buyers have had a chance to look at the property.

3. If your offer is accepted, the bank will then send over addendums to the contract which is legal paperwork written up by the bank's lawyers that explain every detail about the deal. Addendums should always be reviewed by an attorney before signed especially if you don't agree with something because banks will only allow attorneys to make modifications to addendums. Just about all addendums are standard addendums that would accompany any deal whether it's a vacant land deal, condo deal, multi-unit building deal, or single family home deal. Once the addendums and the original contract are signed by both parties is when the property is officially under contract. The initial acceptance is more of a verbal acceptance until you get the signed contract and addendums back from the asset manager.

4. Now that the deal is under contract you will now have to get your finances in order in time for the closing date that both parties agreed on. If you are getting a loan it's time to sit down with your lender to get the ball rolling. Also, it's now time to perform any inspections you want done on the property. Most of the properties will be winterized so you may have to hire a plumber to dewinterize the property if the bank won't do it for you. If you have a home inspector inspect the property, then most likely the inspection is for your own peace of mind because all foreclosure real estate deals are AS-IS deals and the banks don't want to invest any of their money to fix the property up unless they agree to it in the initial contract.

5. Now that all the inspections are done and your loan is approved it's now time to close. In Chicago most asset managers are located out of state in California or Arizona (unless you're dealing with a local bank) so you may show up at closing and find nobody sitting on the other side of the table. You and your attorney will go over all the paperwork and sign everything that requires signing. Once everything is signed and all the money is in order the paperwork will be sent either electronically or overnighted to the asset manager or their attorney for final signatures. It's not uncommon to wait up to 24 hours for final signatures when closing on a bank owned property. Congrats you just bought a foreclosure!

Are listing prices negotiable?

I'm sure you've heard this before but I'll say it again. Everything is negotiable! When it comes to negotiating a bank owned home there is a simple way to approach it. When a property is new on the market the price will not be negotiable until at least a week if not two weeks on the market. Based on the number of contracts the property receives and how far below list price they are will be the deciding factor if they will entertain under list price offers. If after 30 days on the market no contracts at list price or close to list price are received then the bank will lower the price. Usually the price drop will be around $5,000-$10,000 but sometimes, for higher priced properties, the price drop can be even more. Once the first price drop happens is when you are given a key piece of information, which is the amount of money the asset manager is allowed to negotiate on a deal. If the price drop was $5K then $5K is the max amount of money off of list price that the asset manager can accept. An example would be a house with an initial list price of $199,900. The house is 30 days on the market and doesn't have a contract on it so the asset manager gives the OK to the listing agent to drop the price by $10,000. The new list price is now $189,900 so the lowest the asset manager will take on this property would be $179,900. If you think $179,900 is still too high then just wait 30 days. If after 30 more days the property is still not under contract then property will be dropped another $10K to $179,900. At $179,900 the lowest price the asset manager would accept is $169,900. This will keep happening until a contract comes in within $10K of the list price. What I've seen happen a few times is the price gets so low that when contracts start coming in the price gets bid back up to the last list price. So theoretically the buyer would have received a better deal if they put their contract in before the last price drop. Usually the reason it gets bid higher than list price is because a silent bidding war was started when the asset manager requested everyone's final and best offers. Since the property received more than 1 contract, most likely full price offers, the asset manager requested everyone's final & best offer, which is basically a silent auction where everyone gets 1 bid that is supposed to be the highest and best that each buyer can do. Most often the buyer who gets the property in a final & best situation is the buyer who actually submits their final & best offer instead of still trying and hoping that they will get the deal of the year. In a final and best situation I always tell my buyers to pretend they didn't get the property, it just closed and I'm about to tell them what it sold for. If I told them it sold for $100,000 would they have any regrets? If yes, then if I told them it sold for $105,000 would they be kicking themselves? If yes, then I keep upping the amount until I hear them say they wouldn't regret it. I've noticed that most buyers lose an average of 2 properties before they finally get a hang of what I'm saying. I can't stress it enough, always submit your true highest and best offer so you have no regrets, I hear the phrase "it just wasn't meant to be" way too often as a coping mechanism when a buyer loses a property they wanted.

I'm preapproved for a loan why can't I buy this property?

When we first take over a foreclosed property and are doing our Brokers Price Opinion (BPO) as well as getting repair bids from contractors, one of the things we recommend to the bank is if the property can be financed or if we are going to have to find a cash buyer. A property that is move-in condition, whether it needs updating or not, is a property that can be financed and a property that can be financed will always fetch a higher price than a distressed property where no bank will finance a standard conventional, FHA, or VA loan. The reason is simple; more buyers have the ability to get a loan than pay cash for such a large purchase. When someone pays cash for a property they are taking a big risk since so much money is invested into a property that usually needs major repairs. Now you may be thinking about rehab loans. Rehab loans were very big in the foreclosure industry about 2-3 years ago but since problems usually arise and the loan never gets approved, asset managers now try to stay away from them unless they are the only kinds of offers coming in. You might see a steal hit the market in your area and the reason it's such a steal is because the property is being marketed towards a cash buyer. If you wanted to try and purchase the property with a rehab loan then your offer better be well above full price to even get the asset manager to look twice at your offer. Finally, in regards to condos or condo style townhomes (which look like a townhome but are legally a condo), an FHA or VA loan can't purchase any condo that isn't FHA approved. You'll sometimes find a condo listed at a great price and wonder why it's still on the market? In this economy, the difference between getting a conventional loan and an FHA or VA loan can be the difference of an extra 15%-20% down payment. An FHA loan requires a 3.5% down payment and a VA can require 0% down. Now a conventional loan, which is the type of loan you would need when a condo isn't FHA approved, can require 15%-20% down based on your credit score. On a $100K condo it can be the difference of having to come up with a $3,500 down payment with an FHA loan or a $15,000 down payment with a conventional. On occasion, the bank will invest money into a property to make it so it can be financed but it will definitely reflect in the list price when that happens.

I want all back taxes paid, back assessments paid, and a clean title.

In a standard bank owned foreclosure sale the bank will sell the property with all taxes paid up until the day of closing, all Home Owner Association (HOA) fees paid up till the day of closing, and will provide a title clear of all liens. When we take over a property that has an HOA it is Illinois state law that we must pay any unpaid HOA fees up to 6 months in arrears from the day we take possession of the property if the fees are behind. I see some banks trying to put that cost onto the buyer and tell the buyer that it's Illinois law that they must be paid. They're right in saying it's the law that it must be paid but they are wrong in saying that the buyer must pay them because, like many things in real estate, it is usually customary that the seller takes care of that fee. If they want to make the buyer pay back HOA fees then they might as well ask the buyer to pay back taxes as well. You'll know when you're looking at a property where the bank is trying to put that cost onto you because normally the listing agent will have a note in the MLS listing stating, "buyer may be responsible for up to 6 months past due HOA fees". Like everything in a real estate deal it is negotiable based on how much you are offering the bank for the property. It's a numbers game and in the end all the bank is looking at is the net amount of money they will pocket at closing. This is also true if you are requesting closing costs to be paid by the bank. If you request 5% of a $100K deal to be paid by the seller in closing costs then the bank will minus $5,000 from your offer to figure out the net they will profit from the deal before accepting. Getting a clear title is usually not a problem. If you have an attorney helping you with the deal then the attorney will make sure the title is clear before you close. If you don't have an attorney then your Realtor and closing officer at the title company will make sure the title is clear. It also never hurts to tell your Realtor to simply write somewhere in the contract "title to be free and clear of all liens and encumbrances".

Buying a foreclosed home can be a fun and enjoyable experience as long as you are receiving the right advice from someone who knows the business. One thing to remember is not to get stuck on only looking at foreclosures. Although the majority of home prices are well above foreclosure prices you still may be able to find a well-priced non-foreclosure since not everyone is underwater. It usually takes some time on the market but private sellers eventually realize what price they have to be at in order to move their house. Buying a home that has been taken care of where you know the history and get disclosures at a reasonable price is always a great way to go. Yes, you may move in and find a foreclosure hit the market a few houses down the street which is priced $10,000 less than what you just paid but that house will probably require a large post-closing investment to update or even to just make livable. Estate sales are also good properties to keep an eye on because most of the time the property has lots of equity in it and the current sellers (who probably inherited the property) just want the cash out of the property instead of spending their own cash on taxes and upkeep of the property. Estate sales most often are move in condition which is good to get your loan approved but most buyers would probably prefer to update the entire house after purchasing. Remember that all bank owned foreclosures need some kind of post-closing investment so you must have the available funds to purchase flooring, repair holes, paint, purchase appliances, etc.

If you live in the Chicagoland area and would like me to set up a free MLS search for you then give me a call. As a technically savvy Realtor I can tell you that there is no easy way using our local MLS, which is the Multiple Listing Service of Northern Illinois (MLSNI), to simply search for all foreclosures in a given area. With so many properties on the market many Realtors don't understand how to just pull bank owned properties from an MLS search because doing so requires a specific "Boolean Expression" that I have developed over time. A Boolean Expression is a way to search through many documents or listings automatically by looking for key words. I have developed a specific set of key words that only appear in the remarks of bank owned properties because banks request that their listing agents post certain key words in the remarks section of the MLS. You might have noticed this if you have looked through properties on Realtor.com. Your average bank owned properties will have a remark that looks something like this "SOLD AS IS! EARNEST MONEY CERTIFIED FUNDS ONLY! NO SURVEY OR TERMITE PROVIDED BY THE SELLER. PRESENT DETAILED PROOF OF FUNDS WITH OFFER. NO DISCLOSURES." Feel free to contact me if you have any questions about this blog post even if you don't live in the Chicagoland area.

Is it right to strip a house you are about to lose?

Tim D Krzyskowski (Realty Executives Ambassador (Orland Park, IL South Chicago)) — Wed, 12 Jan 2011 19:14:02 -0800

Is it right to strip a house you are about to lose? I see this happen quite often in middle to high end neighborhoods. Recently we took over a house in Burr Ridge, IL which is a high end suburb of Chicago. The house was easily a $1,500,000 house even in this market. The neighborhood was completely built with similar houses which were $1,500,000+ and as of right now there are still a few high end custom homes under construction in that neighborhood.

When we were first assigned the task to check on the occupancy of the home we easily found the home because it stood out like a sore thumb being the only house in the neighborhood that didn't have landscaping which was nicely groomed. We pulled in the driveway and immediately saw a pickup truck parked so it was obvious that someone was still living in the home. When we visit a foreclosed home and find people still living in the property then we try to make contact so we open up the lines of communicatio and try to work out a cash for keys deal to get the owners/tenants out in a timely fashion. The front double door had huge windows built into them so we were able to look into the house and see people in the living room watching TV plus get a decent idea of the interior condition of the house which, at the time, looked good despite the exterior needing upkeep. As soon as we rang the door-bell the 3 people in the living room just got up off the couch and walked away as if they had no idea anyone was at the door. We simply taped our contact info to their door and left. About a week later the bank sent us an email that the house was being redeemed by the owners and to cease all tasks. About 3 months went by before the bank updated us on the situation of that house. The situation was that the owners never followed through with their redemption and the bank wanted us to go back to the home to check on the occupancy status again. When we arrived at the home, the first thing we noticed was no vehicles in the driveway. We then proceeded to the front door where it became obvious that the place had been abandoned. All the furniture was gone and we could even see through the windowed door that some appliances were gone. When we find a foreclosure that has been abandoned we immediatley gain access to secure the property, take pictures, and assess the damages. The owners had taken everything of value out of the house. They took all appliances, kitchen cabinets, bathroom vanities, light fixtures, doors, shower enclosures, toilets, some light switches and electrical outlets, a built in bar, and so on. The only thing they didn't take which made us happy was the sump-pump because the basement was finished (despite a few things they stripped) and it would have been a shame if it flooded. Despite the amount of damage done to the house by the previous owners the bank just had us call the police to get a police report so they can make an insurance claim. No charges were filed against the previous owners.

Another house that was stripped by its previous owners was a middle class house located in the Mount Greenwood neighborhood of Chicago. For those not familiar with Chicago neighborhoods Mt Greenwood is considered a good neighborhood to live in. In Chicago the good neighborhoods are usually the ones occupied by city employees (ie. Cops, Firemen, & City Workers) because city employees are required to live in Chicago in order to hold a city position. When we pulled up to the house to check occupancy it was obvious it was vacant because it was boarded up. We were immediately approached by a couple neighbors who happened to be Chicago cops, and they were more than happy to tell us the details about the previous owner. It turned out the house was owned by a Chicago Fireman whose wife became addicted to internet shopping. Despite a hefty paycheck coming in from the fireman the wife kept spending and eventually they didn't have any money to pay the mortgage. The fireman knew he was going to lose the house so he rented another house a few streets over and then hired a crew to strip the house of everything. The neighbors told us they watched as the fireman personally directed a crew a men to pull out anything and everything of value down to the windows. The fireman then tried to pull a scam by saying that he was robbed and even tried to blame the neighbors for not stopping the house from being stripped, but the scam didn't pan out since more than a few Chicago cops personally watched him direct the crew as to what items to strip. So the fireman then gained sympathy from his fellow fireman who couldn't believe he would do something like that and they pooled some money together to hire a board up service to secure the home for the guy. Now all the neighbors are stuck looking at this stripped down ugly house until it is purchased and rehabbed. Once again, the bank just has a police report filed for insurance purposes and no charges are filed against the previous owner.

Those two examples are just a couple of many where home owners destroy their own house before the bank can take it over.

About 3 years ago when I first started listing REO properties is when a relative of mine who lives in the south suburbs of Chicago decided to completely update her house from the ground up because her and her husband felt it would help them sell the property for top-dollar. Little did they know how much the market was going to tank over the next 3 years. One day at a wedding, I was telling them stories about houses that I've come across that had been stripped by the previous owners, and as they listened, I could see the shocked look on their faces as they would ask eachother how someone could do something like that? Fast forward 3 years and they are about 6 months away from losing their house and refuse to do a short sale. They have been going to court trying to fight the foreclosure (without a lawyer) and are getting no-where. They recently told me the bank's lawyers pulled a fast one and didn't inform them of a court date which really pushed ahead their foreclosure since they weren't at court. They are now irate with the bank and the bank's lawyers and want revenge. How do they plan on getting revenge? They are planning on stripping the house clean, and somehow selling whatever they can to whoever they can. Funny how their mind changed in a matter of 3 years. I think the 2 reasons that houses get stripped are for the money that the materials can fetch and the main reason they strip it is a way to stick it to the bank.

My opinion, probably like everyone else's opinion, is that the house should be left the way you lived in it. I can see taking appliances since those can be considered personal property even in a standard real estate deal but windows, flooring, cabinets, vanities, countertops, toilets, come on! I guess we really don't know how we would act in a certain situation until we are in that situation.

How can you prevent your key from being stolen?

Tim D Krzyskowski (Realty Executives Ambassador (Orland Park, IL South Chicago)) — Mon, 10 Jan 2011 20:07:00 -0800

Going on my 3rd year of listing and selling REO properties the one thing that never changes are people (real estate professionals or buyers) stealing the key and or lockbox for well-priced HOT properties. I find this happens quite often, not just on my listings, but also other agent's listings. It's so common that buyers get used to it and some have even asked me if they can take the key when we find a property they are interested in. I simply laugh it off and explain that I'm a professional and would never allow that to happen during one of my showings.

The cheapest and simplest way to leave a key on a property is to buy a cheap $9.99 4-number lockbox off of the internet and put the key in it. When I say cheap I don't mean a cheap in quality lockbox, I mean cheap in the amount of money paid for the lockbox. Now this set-up is most often the kind of set-up that gets your key or lockbox stolen. Most often it is the key which is taken but, at least in my experience, they take the entire lockbox about 25% of the time. Then there are the times when they don't take the lockbox or the key but they simply change the combo so nobody can access the lockbox (except the person who changed the combo) and the only way to salvage the door handle which it's clasped to is to ruin the lockbox by cutting it off with bolt cutters.

Here are the only ways I've come across to keep your key from being stolen (or at least make someone accountable if it is taken).

1. Sentrilock

Sentrilock is fairly new in Illinois (used to use Supra) and is basically a smart lockbox. Everything on the lockbox is computerized and only agents with Sentrilock cards can open the lockbox. Some agents don't have Sentricards so those agents are issued a personal code which can be used for a 24 hour period. What's good about Sentrilock is that it makes whoever uses the key accountable for getting the key back in the lockbox. Sentrilock, for example, can show that John from Century 21 took the key out at 9:45 am and returned it at 10:15 am but then Suzy from Coldwell Banker took the key out at 11:00 am but never returned the key. It makes it easier to call Suzy from Coldwell and pin the missing key on her. The only downside is that a Sentrilock lockbox can easily cost $100.

2. Electronic Locks

Electronic locks have been around for quite some time now and it's only recently I've been seeing them on REO properties, mostly in Chicago and some high end suburban properties. It's as simple as installing the lock on the door and setting the code. When an agent goes to show the property they punch in the code and the motorized lock opens the door. When they are done they simply close the door and press the lock button where the deadbolt is locked. Some of the higher end models allow for codes to be set for single uses or only to be used within a certain time frame (example: code 1546 can only be used on Saturday 1-15-11 between 1:00pm & 1:30pm). Also, on the higher end models, you can actually change lock codes and get updates as to when the door is opened or locked straight through a smart phone or computer but usually there is an extra subscription service for that feature. Once again the only downside to using electronic locks is the cost which can easily run between $100-$200 or even higher for the top models with all the features.

3. VPS Boardup Door

VPS Board up is all over the Chicagoland area lately. They really do a good job of securing a property with perforated metal window covers (so light can get in) and a vault like door. The good thing about the door is that it has a built in keypad so no lockbox or key is required. The first time I showed a property boarded up by VPS I had no idea what was going on because the code I was given was something like Blue, Yellow, Green, Blue, Red. When I finally arrived at the property I was looking all over for a lockbox but couldn't find it until another agent came walking up and showed me how it works. The key-pad is built right into the door with color coded buttons. You simply punch in the correct colors and then push a handle up and pull the handle down to open the door. VPS is easily the best option for securing and selling an REO but like all the other options there is the price. I have tried contacting VPS to ask for pricing but they won't give out any pricing info until they do an inspection of the property you want secured. I do know some agents who use VPS on occasion and they told me the pricing runs about $500/month for a standard Chicago bungalow.

4. Office Pick-Up/Courtesy Key

Finally, the cheapest solution to prevent someone from stealing a key, or at least make it so someone is held accountable for a missing key, is to have the agent pick up the key at your own office or leave a courtesy key at an office close by the listing. The only problem comes when the office holding the key has short hours or isn't open on weekends. The showing agent schedules the showing through your own office where you instruct them where to pick up the key. The agent picking up the key leaves a business card with the office's front desk and is instructed to drop the key off once their showing is complete. It drives me nuts when there is a hot property and one agent shows it and then hands the key off to another agent who hands it off to another and so on. All of the sudden, the key goes missing and nobody wants to take the blame. In reality, the blame always comes back to the 1st agent who took the key out but didn't return it.

Now you would think it would be a no-brainer to use one of the above solutions instead of the standard mechanical metal lockbox but you also have to take into account having properties in run-down neighborhoods where the house might only be worth $10,000. Do you really want to put a $100 Sentrilock on the property or a $200 electronic lockbox which despite its technical power still can't resist blunt vandalism from a sledgehammer or crowbar? Also, courtesy keys just aren't a right fit for lower end properties because it's hard to even find a good office to hold the key when dealing with run-down neighborhoods. Some offices will tell me to just put a lockbox out in front of their office but then I'm back at square one. What it comes down to is the amount of money the asset manager in charge of the property will allow us to spend on securing the property before we have to dip into our own supplies. I don't think they care at all if the key gets stolen because they expect us to be out there the next day to replace it which I do but other agents don't since they haven't even visited the property and instead have hired someone else to manage the property. One other way I've stopped people from taking keys on my listing is to simply post a sign. I tape the sign next to the lockbox and it reads, "Come on People! Act Professional! Taking the key will not give you any advantage over another buyer." I have still seen keys get stolen on listings which have this sign but it happens far less than on properties which don't have a sign. I think the sign speaks directly to a person's conscious and makes them think twice before taking it.

Whether we like it or not key stealing is here to stay. Too many people nowadays are dishonest and too many agents don't even bother personally showing low end investment properties anymore and instead give the lockbox combo directly to the buyer to look at the property at their own convenience. When you combine dishonest people with great deals then people will always look for a leg up. If anyone else has any other ideas to keep a key from being stolen (preferably low cost) then please post.

Give Us Your Final & Best by 5:00...There has to be a better way

Tim D Krzyskowski (Realty Executives Ambassador (Orland Park, IL South Chicago)) — Wed, 18 Aug 2010 19:20:09 -0700

Seems like every offer I write on a foreclosure lately comes back with an email or fax asking for my final & best by a certain time.

I've been working along side my broker for the past 3 years doing REO in Chicago, Illinois. When our office has the listing and I have a buyer looking to purchase the listing I always have a leg up on everyone else because I know what kinds of offers are coming in and I can straight up tell buyers if their offer has any chance of getting accepted or if they shouldn't even bother writing it. Now when I have a buyer looking to purchase a listing held by a different brokerage I know the listing office has the leg up in regards to their buyer's offers and they can easily wait for all final & best offers to come in and then advise their buyers to outbid by a little more.

Over the past 2 months I've had numerous buyers with final & best offers coming in $25,000-$30,000 over list price but every time I get a call from the listing agent telling me the seller has decided to go with another offer. Then when I proceed to ask questions about the kind of offer that was accepted they will not give me any info until after the property closes. My office will at least answer basic questions about an accepted offer. When I say basic questions I mean:

Was the accepted offer under or over list price?

Was the accepted offer represented in-house?

Was the accepted offer cash or financed?

Like I said before I work first hand on the listing side of REO transactions and the banks basically tell us that we can't give out the sold price or specific contract terms until the property closes but many agents must like feeling superior to everyone else by holding back allinfo until the property closes. If someone takes their time to show a property and write an offer I think very basic questions should be answered.

About a week ago after showing a bunch of REOs to a buyer I received a call for feedback on a property. The listing agent asked me if we placed an offer. I responded that we wouldn't be making an offer on the property for various reasons. She then explained that she was just wondering because their seller has a website where the buyer's agent places the offer,which bypasses the listing agent, and goes directly to the seller. She told me how she thought it was so stupid that offers had to be placed like that because she has no idea how high the offers are or even how many offers there are.

I personally think all offers should be done like that when dealing with REOs. It makes sure that everyone including the listing agents are on a level playing field. It also makes sure that all offers being made are being submitted and viewed by the seller (I do wonder sometimes if my offers are even being submitted). When my office receives a contract then all the contracts terms are inputted into Equator where it is then viewed by the seller. I would prefer Equator allowing buyer's agent to register for accounts where they can then input their offers directly to the seller without the listing agent even seeing. The licensing law says that we are supposed to advise our clients with their best interest in mind. So does that mean I'm supposed to refer my clients to the listing agent when it's time to write an offer on an REO?