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REO and Foreclosed Properties - Out of area agents.

By Scott Runtzel, MRP, SCREA

Real Estate Broker/Owner with Monterey County Appraisal Services & Open House Realty (831) 224-3793 BREA Lic. AR041324

April 19, 2009 06:50 AM

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.

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Gary Meek

Living in Sacramento Team - Roseville, CA

(916) 995-9385

I am with you. Just had a new REO hit the market, that fits my buyers needs. We called the agent as listed in the MLS, and tried to gain access. They have a combo box on it as they do not have a box from the local MLS. I had specific questions, and there answer was daunting. It's an REO sold as is where is, figure it for yourself. Luckily it is one of the banks I deal with, so I have a call in to one of the asset managers I am close with to see what we can do.

Apr 19, 2009 02:54 PM

Julie A. Black

KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI

CLHMS, CRS, GRI, Realtor, Broker

We have the same thing in my area. A few REOs are being listed by agents who live on a different island. They can't show it with out taking a plane and have no idea of the local market. But I think the smarter asset mangers are catching on.

Apr 19, 2009 06:30 PM

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

I hate this more then anything out of area brokers do these asset managers not realize the distant of someone they are picking? Why would they do that.

Apr 21, 2009 12:19 AM

Andrew Monaghan

The Monaghan Group - Glendale, AZ

CRS, GRI, EPro Associate Broker

Gary, great point but i would be very carefull in contacting a bank about someone else's listings as you may well be in violation of teh code of ethics or worse put your company in a dual agency situation.

Apr 25, 2009 06:43 AM

Scott Runtzel, MRP, SCREA

Monterey County Appraisal Services & Open House Realty (831) 224-3793 - Monterey, CA

Appraiser/Broker/REALTOR

Speaking of dual agency, it is completely legal here in California and I do it all the time (double side, double money). There are some asset management companies that simply will not allow dual agency. They don't care that it is legal in the state. It's unfortunate because I know that when representing a buyer, I give them excellent service while always giving the seller the same excellent service. I find it odd that dual agency is not permitted in many states. But, that's the law.

We continue to see more and more REO listing being placed with agents that are up to a hundred miles out of the area. Especially with Fannie Mae listings. It is REALLY frustrating. Many of them go to auction after being listed on an MLS that I would guess, 90% of the local agents don't belong to or have access to. The seller has no clue as to why their asset never sold. It's so simple. If you list a Fannie Mae home with an out of the area agent, and they don't belong to the local MLS, the local agents don't even know the house is on the market and it never get's sold, let alone shown. I have made several attempts to contact Fannie Mae but it all goes on deaf ears so far. When they have an agent, they refuse to add new agents.

CALL ME FANNIE MAE and FREDDIE MAC!

Apr 25, 2009 07:18 AM

Anonymous

Pasco REOs

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See http://pascoreos.com to get your free report.

PASCO REOS

http://pascoreos.com

Sep 14, 2009 07:47 AM

Anonymous

Ron

I read what you said about these Asset Mgt companies. I wished that the banks knew how badly these companies treat their so called Vendors. They should be called employees. These Vendors are told when and how to do the jobs. They are told how much they get paid and what equipment they have to use to get the job done or they will not get paid. To top that if the completion pictures are not downloaded within 3 business days of completion there will not no money owed to the vendor. Even though, if the problem is that the asset manager’s computer is down for repair and cannot receive emails. Let me bring you an example. A company was issues an order by an un-named Asset company to do a trash out. That company took pictures of the debris and gave it to the asset company with a bid for trash out. The bid read 20 cubic yards of debris will be removed for xxx $. The bid was approved and the job was completed. During and after pictures were downloaded to Asset Company. Here it comes the good part. The asset company changed the bid amount from previously agreed 20 Cubic yards of debris to 5 cubic yards and refused to pay the agreed bid price. The reason was that their inspector reviewed the pictures and decided that only 5 cubic yards of debris were present at the job and that is all they are going to pay. This is not FAIR changing the price after the bid was approved. The sad part is that this was a normal practice. Sorry, I should have said "is" normal practice. Is there anyone out there that can protect these "employee vendors". These asset companies have deep pockets and mostly are out of state making it hard for vendors to seek justice. Someone should tell these banks that their asset managers cheat and do all in their power to make a buck.

If you disagree with me let me know and I will bring you proof. I am afraid to mention the name of the asset company for retaliation. So bankers, mortgage companies PLEASE may be once in a blue moon talk to a so called vendor for these asset managers you hire. You may be very surprised on what you hear.

Feb 11, 2010 02:07 PM