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Hey REO Agents...

You have to follow the rules too. And by "rules", I don't just mean Code of Ethics and MLS regulations, I mean the LAWS as set forth by your State's Department of Licensing.

I've been fortunate to work with a few really great "powerhouse" REO listers in the last year. They have huge volume, but still manage to answer their phone, return calls and answer questions.

The frustration level in the industry right now with REO agents is incredible because many of them (not all, but many) are either incompetent, ignorant or believe themselves to be above the law.

Here in Washington State, by law, a listing agent must present any written offer to a Seller. In an REO situation the seller is the Lender or Investor....so you have to submit the offer, whether you have time or not. And here's another Code which goes hand in hand with the submission of offers and one I see being violated all the time:

Expeditious performance.

A real estate licensee shall perform all acts required of the licensee by a real estate agreement as expeditiously as possible. Intentional or negligent delays in such performance shall be considered detrimental to the public interest in violation of RCW 18.85.230(23).

So sitting on that offer for 3 weeks, waiting for a better one is probably not such a good idea.

That is if you want to stay licensed.

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Colleen Fischesser is the Broker/Owner of RE/MAX Select in Maple Valley, WA. She has been successfully selling and marketing properties all over South King & North Pierce counties since 1990 but specializes in the Maple Valley Washington area. She may be contacted directly at: 425-432-5400

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Colleen Fischesser is the Broker/Owner of RE/MAX Select Real Estate. She has been successfully helping clients buy and sell real estate in South King & North Pierce Counties since 1990 and specializes in the Maple Valley area. Voted by clients and industry professionals as one of Seattle Magazine's 5 Star, Best in Client Satisfaction for 4 years running, she and her team are committed to remaining on the cutting edge of real estate marketing and technology while providing value-added, personalized service.

Posted by "The Maple Valley Specialist!" Colleen Fischesser Broker/Owner 425-432-5400 on 06/20/2009 07:01 PM

Comments (76)

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76 Comments on Hey REO Agents...

JUN

Bravo! Well said, and to the point.

and can I add that a Buyer / Buyer agent has a responsibility to present a compete offer package as outline in the instructions outlined

Good one Eric

Eric, absolutely incompetence works both ways unfortunately and only the clients are hurt by it. We have agents sitting on offers for weeks claiming to have submitted them and I know for a fact the same is happening in other states. Then they lie when called and asked if there are other offers on the property. It's a complete mess and brokers need to get a handle on it or there will be formal complaints made (if they haven't already been made)

Interesting that the state license law covers this matter. Very interesting and progressive.

Even more frustrating are the agents who aren't busy, but can't seem to perform their duties in a timely manner.

Don't get me started on some of the REO agents here in NYC and the surrounding areas. After moving Heaven and earth to get a lockbox combo and then finding no key in the lockbox (or having the wrong combo, etc) , it is almost a proverb that they'll have an accepted offer by the time I get my buyer in.

While there's no question but that the problems can be on the part of BOTH participants- a buyers agent that submits incorrectly, an REO agent that's busy, and knows that his/her asset manager will accept nothing BUT correct documents, with bank owned desired by buyers, the twain has to meet. REO agents need to offer a good up-front expectation in writing; buyers agents need to read it and understand that it is what it is- any expectation to the contrary can result in an offer that sits, unsubmitted due to a lack of full documentation. It falls to the buyers agent to learn- let's hope that REO agents make the effort to teach when needed. Picking up the phone would be a start, for those that don't. Buyers are waiting.

Colleen, Of course that doesn't apply if the seller has instructed their agenty differently. Some banks don't want offers to be presented for the first week or two. Some may have already given instructions that only offers above a certain amount are presented.

Now having said thatt there are many games being played when it comes to REOs

It is a two way street and many buyers agents won't send everything necessary to submit their offer then blame the listing agent when after five days of waiting they lose out to an agent who did it right. I submit offers on my listings when received and I answer my phone and return calls.

Laurie, you make an excellent point and are 100% right. It's all about the expectations. If it's going to take 3 weeks then let us know up front so the buyer can make a decision (much the same w/ a short sale scenario) as to whether they want to head down that road.

Bryant, if an agent in my office had a Lender/Investor who said "don't present for 2-3 weeks" I'd have to tell them to inform the client they have to by law. The seller doesn't have to do anything w/ the offer, and the presentation can be (I believe) verbal. But just because we are instructed to do something by our clients doesn't mean we can if it goes against the rules/codes/laws.

Cameron, that's great. You're obviously not the type of agent I'm talking about and sadly, you seem to be in the minority of REO agents lately.

REO agents are bound by the same Code of Ethics as the rest of us. Talk about making a tough job tougher. Some have assistants that further complicate matters. All clients are being hurt...our buyer clients and the banks! As these bank-owned properties stay on the market, they continue to contribute to the downward decline of home values.

Colleen - Nevada is pretty close to the same! As an REO agent let me say ... don't lump us all together! Some are stinky bad ... no doubt! Others of us are concerned and do the best we can to co-operate!

I've had a couple of agents tell me that they weren't going to submit an offer for one reason or another... in each case I've asked them to provide that information to me in writing so I could have their license removed. None have taken me up on it.

No instructions can override law in Georgia either. I get an offer and law says it must be presented as soon as practically possible. Even if a property is under a binding contract all offers must be presented to seller, no ifs, ands or buts and no instructions otherwise. I love Lane's response above.

Yes, that is what inspired me to become an REO agent a couple of years ago..but we little guys, who do a good job have to stand by and watch these REO machine agents continue to get the listings, and mismanage them.

Colleen - well said. There are plenty of situations where the agent appears to be in violation. That's true of short sales as well. Lots of games. But unless someone formally complains nothing will likley change.

Jeff

I think one of the real issues and culprits here is the seller(bank or whomever) who do think they are above the law and can dictate whatever, whenever and in many cases does instruct their listing agents not to show them any offers below a certain amount. Having said that , there are definitely some agents playing the games as stated in some of the previous responses. The REO's have blatantly defied the RESPA laws by making buyers in our area use their title company and at expenses much higher than normally a buyer would have to pay.

I think what would be prudent if the seller just signed off the offer as rejected up front. Or counter if they do not like the offer.

There are a lot of issues going on now. It will take years if then to see some semblance of order obtained again.

I represented a buyer on a REO back in July. Our offer was verbally accepted but we did not receive written approval until about the middle of september and the home was continued to be marketed.

We did finally close. Around the first week in November........Not a short sale......REO.........

I have worked with lots and lots of REO agents here in WA state since REO's have been a big part of what I have sold even many years ago. Any way I learned early that I must follow their instructions. Yes agents are supposed to present all offers, but the asset managers and or banks often will not even look @ offers unless they are submitted exactly as the bank requires.

Also the bank usually has rules where while they may accept other offers they only will CONSIDER one offer at a time. I have not yet represented any of the banks ( but would like to) but do know in Short Sale situations the bank usually does not want to process more than one at a time, and getting them to do that is hard.

I have had frusterations selling REO's, such as not even getting acknowledgement of the fact my offer has gotten to the agent and no key in the box and no mls box even though the MLS rules say there must be one and so on. On the other hand I have had wonderful wonderful cross sale agents that I would love to work with again and again. Their job is really really hard, they must deal with all kinds of bank imposed deadlines while also keeping the ones in a regular contract, they often must pay for repairs, clean up and even utilities with their own money long long before closing and then hope that the bank will reimburse and they usually do this all plus deal with often multiple offers for a commission lower than what is offer to me or you as a buyer's agent.

This does NOT mean that they can break laws, however if their seller like other sellers chooses not to see an offer until a certain time they do need to follow those instructions ( I agree that it should be in the listing!)

Some things that have made selling REO properties easier for me.

1. For Title and Escrow put- "Seller's choice"

2. If it has been on the market less than 30 days, do a full price or just above offer unless the price is really out of whack.

3. Call the agent ahead of time to see what the bank will require and if you need to use regular MLS forms first and then add on a short bank addendum or will you need to submit and then do a long form that replaces it or what.

4. Explain to your buyer that it will likely take a few days for a response

5. Explain to your buyer that there will be more bank addendums and advise them to have an atty on tap to go over them with them if they so choose since there will be a short dead line to get them back to the bank.

6. Call and email the REO agent as soon as you send the bank addendums over so that they can review them and if you made a mistake on them you can remedy it. ( one place I have made a mistake more than one time is that often their lead based paint addendum needs to have initials on all the lines and not just something checked

7. Get a cashier's check from your client made out to the correct Escrow as soon as you know who escrow is and get it delivered and the receipt turned in right away.

8. Include an approval ( not prequal) letter with your offer and if there is down payment, include proof of those funds as well.

9. Unless the property has been on the market for over 90 days keep in mind banks usually will not take a contingent offer.

Colleen, this is so on the mark! And it's really about all agents who carry a huge inventory, whether it's REO or not.

I personally cannot figure out why incompetent people are rewarded with business.

Colleen: Thankyou, thankyou... for being the professional you are...

Rene'

Great job on this girl! Congrats on the feature! xxoo

Colleen, great points you bring up. I think that it's time those agents were reported to their local board. Too many games are being played by these incompetents.

Often it's the banks sitting on the offers. We're letting them do their own thing with our industry! No rules for banks and lenders except their own.

Amen.

There are some REO agent's listings in my area that I refuse to show because I know their game all too well. They won't do anything with my offer until the 2nd or 3rd offer is in hand. The words "highest and best" don't resinate with me very well. So what if they price their listings aggressively. The smart agents who have played this game before know that a low listing price ends up getting multiple offers and more than likely results in some desperate, under-educated buyer paying too much for the POS AS-IS property in the end...

Great post, as an agent that has made a shift to doing a lot of REOs, I treat my REO clients, cooperating agents and buyers the same as any other client. I work with one asset company that is awesome they give answers usually the same day, often within hours, I can usually have the offer back signed within 24 hours as well for the buyers. Another company I work with, takes over 10 days sometimes to get the agreement back, however I have at least gotten them to sign off via an email to mark the property under agreement.

I have run into situations where a local brokerage has held offers for two weeks and does not present the offer on Fannie Mae properties. That is frustrating to buyers that are looking for an affordable home.

What gets me is, why would an agent not return a call or even answer their phone in this or any market? Vacations are one thing, but when they are in town and actively in business, it doesn't make sense. I have picked up more listings and buyers for just that very reason, so I say keep ignoring the calls:)

Have a great weekend!

Hi Colleen,

Well done. All too many times some agents feel the rules do not apply to them. Unless we as individuals do something about, we too become part of the problem.

It is very important for any agent to answer their phone or return calls in a timely mannor

Here is a typical example of many of the REO agents I, as a buyer agent, have run into.

First, the MLS remarks state: "Do not call for status. Only emails will be responded to." OK. So, I send email 1. No response. The same goes for emails 2, 3 and 4. So I call on the phone. "Sorry," the receptionist says, "He doesn't respond to status updates over the phone." So, I send another email. No response. I recheck the MLS. They changed it to have emails sent to another agent. So, I email her, just asking for them to at least reply to say they received our offer. No reply. I send another email, still very civil. I finally call, and am transferred to one agent, who tells me that she is no longer handling the property, and asks if I would like to talk to the agent who is handling it. "Yes, please," I say. Finally, I think I am making some progress. When she answered the phone, this agent said she does not give any status over the phone, and I needed to sent a status request in email. I told her the reason I am calling is because I had already sent several emails to two of their email addresses related to this listing, and had received no responses. She then told me that she hasn't yet submitted the offers. She will be submitting all the offers on Friday.

Well thank you very much! Why couldn't you have just said that, instead of saying that you didn't give status over the phone?

This type of incompetence and time-wasting idiocy is typical of most of the REO agents I deal with, and I deal with lots of them. If they would just have the common courtesy to reply with a short email or answer their phones they would be able to save themselves, as well as everyone else, a lot of time and frustration.

Why don't you get in touch with the listing agent's broker. The broker should be able to smooth things out for you, after all they are ultimately responsible for oversight of their agents (at least here in California) and may end up being disciplined too (especially if you help them out by making the aware of the situation).

(Of course I guess this won't work if the agent is also the broker.)

JUN

Being an REO agent, I wish many of the people who are complaining could walk in that agents shoes. I know of a few agents whom I worked with when they were representing a buyer on an REO sale who are now REO agents themselves, and now they understand!

For myself, I provide status updates on MLS and Twitter. I also attached a very detailed REO Offer Information and Instructions document to our MLS to educate the buyer's agent on the process and timelines. First line of my MLS confidential remarks are PLEASE REVIEW ASSOCIATED DOCS. Do the agents do it? No, of course they don't. They call me instead to ask the very questions that I have already provided answers to.

Why do buyers agents call to say, "is it active? Are you taking offers?" Uh.. yes. That is why it is ACTIVE on the MLS. "Oh, okay. Can you tell me what EMD means? " Are you serious? How about you ask your broker that question. "Can you call me, because I want to present an offer..." For what? Just present it. Then when it gets marked pending, they call back to say - "hey you didn't call me and I had an offer to present." ??? Or what about the REPEATED phone calls to check status of the presented offer. Sometimes those start the next day after the offer was sent over, even after they were told it would take 48-72 hours for a response. Nothing fills up my voicemail quicker than those calls. What - did they think I got an answer and just didn't bother to tell them? We are all working towards the same goal. My absolute fave is "how many offers do you have?" I hate answering this question. It actually is not beneficial to my client to answer it. The only purpose for this question is to find out how low of an offer they can write. Why would I help them do that? Again, it is the SELLER's choice to provide that info.

The seller will and CAN dictate what offers they do not want to see. Often, they will tell us to give the property at least one week exposure before presenting. I always tell the buyers agents that if that is the case. Yes, I may have several within a week, so I also tell them to present highest and best off the bat - especially if I anticipate multiple offers. They don't. Not all asset managers counter and then they come back and complain that we didn't give them a counter. Seller is not obligated to COUNTER or ACCEPT any offer. In fact, many will tell you to send the highest 3 offers.

I present ALL offers unless they tell me not to. It is their choice, and I the agent don't decide what they want to see - the seller does. If an agent is making their own determination, that is not the right thing to do. Even though they want the top 3, I still give them a brief summary of the ones I am not sending over.

An REO agent's day is pretty busy - especially if they don't have assistants. I found that assistants actually slow me down, so I don't use one. I have BPOs to do, Monthly Market reports, Cash for keys to get out and tenants to meet, trash outs, signage, offer management, court appearances, sheriffs lockouts, etc - for each property. I don't have time to educate someone who holds the same license as I do, nor should I have to.

In regards to missing keys... you can thank your fellow buyers agents for that one, and not the REO agent. It is an old and tired game. They think if they remove the key the next guy will not have access, giving them time to present their offer before more people see it. When I used combo boxes, there was no way to find out which buyers agent removed the key. So, I simply put in my instructions that if that key came up missing, NO offers would be presented until it was rekeyed and every person who contacted me about the missing key had an opportunity to view and present offers too. It worked pretty well for those who read. It actually hurt them to remove the key because it let more offers build up causing more competition. Now, we are required to use Supra lockboxes and its great because now I can track in/out activity and would know the last person in removed the key. The seller requires us to use combos for their vendors to have access, so now I have both on my properties.

Whew! That felt good! All I can say - and someone above also mentioned it - just follow the agents directions, inform your buyer of the process, and always present your best offer, and it will all work out.

Colleen - REOs are not so fun - each bank is different, each asset manager is different, each agent is different - the states should all crack down and have some uniform rules - before it gets out of control. We have some really good REO agents here, real pros and a pleasure to work with.

You got some great comments here!

Unwillingness to present all offers is understandable in the REO segment. The seller gets to decide. REO agents know who they work for.

But for short sales:

Some brokerages are writing offers that are contingent upon that one offer being the only one forwarded to the lender. Then they sit on any others with the express approval of the seller.....but not necessarily in the sellers interest.

If that first offer is rejected by the lender, the seller may have been harmed by other offers being held back by the listing agent.

I'd love to know the national experience on this one.

Some of the REO agents in Maryland are refusing to provide the required HOA documents. Clearly a violation of state regulations.

Follow me on Twitter: http://twitter.com/roykelley

When I watch some of the REO agents I wonder what they will do when some of the business dries up. some are new agents and they are not prospecting and they don't know how to properly list a home. they are smug and that makes me not so willing to ehlp them. :)

And even if you as the buyers agent do everything right the seller (the bank) can sit on it until the house goes to auction anyhow, even if it is 2 weeks after you submitted all of the proper paperwork!

Colleen, great post! We are having this issue here too. I understand they need a full package as well from the buyer's agent, but when you have 8 offers on the table, and the listing agent is not communicating AT ALL with the other agents, and you, as a buyer's agent KNOW your package is complete -- it can be very upsetting!

Thanks for posting Colleen! We have many of these types of REO agents in our region and it should not be tolerated, but unfortunatley, it is. In addition, we have buyers who aren't getting fully executed contracts for weeks. I just recently found out now the banks won't start the appraisal process without them anymore which now means the 30 day time for closing becomes almost 60 and with a penalty to the buyer. Go figure!!!

OK you got my attention. Why is it the REO agents fault when the seller insists that the property be in the mls for a certain period of time? Freddie Mac just went to 7 days from 48 hours and I frankly expect to see more. Go back and read Stacy W.'s Post. It is dead on. If you want your client to get the property - bring a decent offer. No stipulations, No finance contingencies, the cleaner the better. One stupid agent just called my broker to complain. The winning bid was $100 less than his. The winning bid had no due diligence period and closed cash in 15 days. For a lousy hundred bucks he thinks they will maybe wait 5 days to find out if he really is going to close or watch the closing blow up when the lender demands repairs. I think not. Get educated about REO before you start whining. It is not a market segment for the faint of heart and the ethics complaints go nowhere because we are only doing what the client wants which we are legally and ethically bound to do. That being said, there is no excuse for not returning phone calls unless it is the fifth that day regarding "have you heard something". We WILL call you when we hear back but we don't have a chrystal ball and calling repeatedly to have us say 'all offers have been submitted and are under review' seems like a waste of time for the buyers agent as well. Maybe you could find something more productive to do - and accidentally make more money.

I don't care how busy you are, you have a duty to abide by our COE. Ignoring phone calls with questions is not acceptable behavior, or a good way to treat fellow agents who are trying to sell your listing.

We have a REO agent here who does not return phone calls, does not respond to emails in a timely manner, and seems to go out of his way NOT to let you in his listings. He arranges all his own showings and when you're trying to make an appointment you have to call 3 times to get a return call.

Why would any agent want to sit on an offer? It's totally stupid and quite frankly....against the code of ethics....also just plain mean too:)) You would think with all the complaining of no business that they would get it done. Unless the owner states in writing to hold offers then they have no choice.

I have had agents beg me not to put another offer on top of what's already there. I appreciate the truth so I can give my client a straight scoop.

I, personally, am very frustrated with REO listing Agents, too. As much as I hate the thought of formal complaints, I think it might be time. My chief complaint is Listing Agents that don't have a clue what they're doing but they take the listing, anyway. That makes all of us pay, in time, money, frustration. grrr!

I know dealing with some of these REO agents can be a true headache no doubt. At the same time though, I get frustrated with buyer agents who use the 2001 or 2004 version of the as-is contract as opposed to the 2008 version (the other versions are completely obsolete - yet incompetent buyer agents apparently have no clue that a newer version was available years ago). They also forget to include FHA addendums, condo addnedums, the required bank addendums that I so nicely provided online, etc.

There is plenty of blame to go around on both sides of the table.

OMG...it's happening here as well. I AM dealing with one incompetent, ignorant AND believes HE is above the law "JERK" for a MONTH!!!! (my buyers have had an offer in ONE MONTH).

I called yesterday and did NOT say I was a Realtor and asked HIS assistant (because he NEVER answers his cell, it goes to his assiant & he NEVER calls back) and IF the property at 1234 ANY Street was still available???? "OH, yes," she said. "It does have multiple offers on it, however."

Karma PEEPS... Karma!

Coleen: lenders have much to much power and we have to do something about it.As far as the REO Agents its a mixed bag. I will not hesitate to contact the broker if their is a violation, but I will give the listing agent a heads up first. So far I haven't called a Broker. Most REO agents in my area do present the offers as they come, however, many lenders want the property to be listed for a minimum of three days before they consider any offers. Like in any profession we do have quite a few who do play "games" and these characters need to be held accountable.

As Yogi Berra would say about some REO agents, "this is deja vu all over again".

Great Post!!! I find that alot of the delays and violations have come from asset managment companies who are hiring the average joe looking for employment. The banks are trusting the asset company to hire qualified people to handle their assets. Granted some are better than others, but many are not qualified to do what they are doing. Ultimately making a mess out of a simple transaction.

I worked with one asset manager who was laid off from his previous job, but had computer skills so he got the job as an asset manager. Antoher asset manager who was previously a bank teller, who saw the posting for the job and applied and she has never owned, bought or sold a home. Neither of them had real estate licenses either. I fear these individuals are controlling at least a 1/3 of the real estate transactions today. Can we say SCARY....

Part of the problem is that the banks are using to few agents to service these listings. If the business were spread out more evenly we would not have as many problems with this issue.

Can we have some cheese to go along with the whine?

As an REO agent myself, I have to comment here. I completely agree with Stacy's comment(#33). All buyer's agents should read her comment and take note because she is dead on. The exception is that I do submit all offers as soon as they are received. It is state law and I inform all my clients that I have to submit all offers as soon as I receive them. Now just because I submitted does not mean that the seller is obligated to respond back. The asset managers that I deal with are going to do whatever they want with the offer in the timeframe that fits their needs. If other offers come in before an offer is accepted then I am again obligated to submit those offers as well. And until an offer is accepted is writing by BOTH parties then per MLS rules, I have to keep it listed as active in MLS. I have had buyer's agents complain that their offer was first and should have been accepted. That is not the way it works with reo's. Or questioning why it is still being listed as active when there are multiple offers. Educate yourself please.

As for phone calls, Stacy addressed some of the issues that reo agents face. Read read read BEFORE you pick the phone up to call and don't waste my time with questions that I won't answer such as How low do you think the seller will go in price? or what was the last offer price?. I can't and won't tell you these things and you should know better than to even ask. Personally I answer and return all phone calls but don't call me 5 times a day wanting to know what the status of your offer is. I am a working agent and I don't have time to deal with buyer's agents like this. I know the agents that do this and I absolutely dread getting offers from them. Most of the time when you call, I don't know anymore than you do and have no information to pass on. After the 20th+ call in 3 days, I do stop returning phone calls(and believe me there are many buyers agents who call this much). Whenever I get a response back I call the buyer's agent then. I am not going to harass my client for an answer because you or your client can't wait. As a buyer's agent you need to educate yourself on reo's before submitting an offer and educate your buyers about the process. It takes time to get word back sometimes as long as 2 weeks depending on the bank. Once I submit the offer, I have no control over this. So calling daily for an update does nothing but waste your time as well as the LA's. In my experience, the ones complaining about lack of communication are usually the agents who call excessively and are not educated about the whole process of reo's. Or the ones that failed to educate their buyers beforehand.

Now with all that said, there are some bad apples that I have encountered myself so I understand where some of the complaints are coming from. There is one in particular in my area that is notoriously horrible with returning phone calls and just generally being professionally. But all reo agents shouldn't be judged by the bad ones. Most agents don't want the public to judge all agents based on the actions of a few bad apples. Same goes for REO agents.

I know of some VERY bad REO agents that give the rest of us a bad name :-) Failure to return phone calls promptly is unacceptable. However, even REO listing agents need a day (or even a few hours) off now and again ... How about the "selling agent" that once contacted my seller direct because he claims that I did not phone him back promptly? I was out of pocket from mid-afternoon and into the evening with my aged mother-in-law at a hospital emergency room. Are we required to be at everyone's beck and call of 24/7 ??? (No, I did not file an ethics complaint - Life is too short)

Selling agents often get impatient when we do not receive timely responses from the lenders. That is beyond our control. Frequently, the selling agents TOTALLY disregard the guidelines for submission, change the addenda (never allowed) and include unrealistic contingencies. On top of all that, come in with ridiculously low offers that could never be considered by the lender. You must submit a serious offer to be seriously considered.

If you do not understand the process, ask the REO agent to help. We often walk selling agents through the entire process to help ensure that their offers are presented in the best possible light. The combative "know-it-all" selling agents are most often unsuccessful in their attempts to sell REO's. But of course, it is never their own faults.

As to Jim's comment with regard to short sales ... A listing agent should NEVER "sit" on an offer. The first contract executed by the seller should be submitted to the foreclosing lender for approval. Subsequent offers should be presented to the seller for consideration as back-up offers. If the first fails to win the lender's seal of approval, submit the next one.

I know one of the obstacles we are now encountering here is the cross-qualification with the seller's lender. The sellers lender is of course , the bank who owns the property. I literally had one cross- qualifying loan agent tell me that if my client used them to get the loan, he would put a little star next to the offer, so the seller(the bank) would know they had a chance to finance the property also. To me this is not fair to the lenders who have been working with the client for the past few months, addressing any credit issues, keeping up to date with proof of funds, paystubs etc. Then the seller(the bank) expects me to yank the client from the lender/loan agent who they have been working with, just to get a chance to get my offer accepted?.And these are direct lender- qualified clients.And good offers. All this cross qualification is a load of poop.I can understand they want to make sure the buyer is qualified, but they should at least give the buyers agent some credibility.Most agents, if they know what they are doing, do not work with clients who are not pre-approved/approved .They should only request cross-qualification on offers that they plan to accept and/or counter back to.Most of the loan agents that they want you to get " pre-approved" by, don't even return the calls or emails, as they are swamped with all the work.So by the time they respond, the property goes pending , or "no more offers are being accepted".It is just becoming a big game with these REO sellers.I do not blame the REO listing agents, they are just jumping thru the same hoops that I am-although I do think some of them should hire an assistant if they are so busy making all that money, that they can't even respond to phone calls or emails.

OK- enough said-off to show more properties!!!

Debbe

I think that there is a big business in Shadow Pocket Listings. Some of these agents want both sides or need to make sure it goes the right way to keep a client happy. Ever try to call a bank and tell them they are being ripped off, don't bother.

I was very disappointed after reading this blog and its comments, I heard many complaints about other agents or their business practices they may or may not have, its our jobs as real estate professionals to provide excellent service to the public, not ridicule each other on a blog where consumers will read and further depreciate your own value as a professional , all the problems I have read should be handled by the broker in charge of these individuals and if that does not work our code of ethics does cover these issues and should be reported to the board if the Broker is unable to properly manage them.

Mike Nehmzow

Broker/Owner

Get You Moved Realty www.GetYouMoved.com

Great note. Also, I have seen too many REO agents that don't provide all the correct listing information. And Hey, how hard is it to take some pictures with your digital camera and put more than a street shot in the MLS? Go to Aisle 3 and buy a clue.

Code of ethics and code of the professional business conduct does apply to all agents (REO/short sales specialist/regular agent etc...) regardless of your RE specialty. Meaningless to say, these basic rules we are learning beginning from our families and schools. Unfortunately, some people have not grab these basic "milled stones" from the begging of their lives and we, as a society, have "new modern widely spread" generation of the "high tech", "easy to come-easy to go", "professionals".

RE local communities are very well know by the RE agents and your professional business conduct is known by your co-agents very well. Good reminder to everybody: this is a two-way road in this business. So "do what you say and say what you do" rule does produce a good professional relationship even with the "big REO players" in your RE market to benefit every PROFESSIONAL agent.

NICE post Colleen! And Anna (comment #20) . . . very good list of tips.

I might add one more: if asking for seller to pay any costs, make them a dollar amount rather than a percentage . . . I see that a lot in the counters from banks.

There is one REO heavy hittin' hoohah that I about murdered for responding to an offer we presented (a low offer but doing what the buyer asked) with the words "Get Real" faxed back (his words - offer wasn't presented).

If I ever see that 'man' on the street I might run him over with my truck.
"Real" enough for ya buh-ddy? :)

I have more faith on people that some of the responses. . most REO agent that do not respond quicker enough is because they just don't have the system in place to perform a few transactions at that time.

I can relate to that myself selling a lot of short sales. . once we put system in place, our responses are much faster and efficient.

We run into more of the REO agents who never answer the phone, make it hard to get a lock box code and who seem to think it is a badge of honor to be rude. One recently listed in special documents in the MLS a paragraph about how they would be "perceived as rude" but basically that was the way it was.

Kristy is exactly right about the time frame and how she presents offers. some agents think that the Seller is the rule maker, but here in NC, the rule goes, "Follow the client's lawful directions..." and the law says we have to present offers immediately or as soon as is possible. Some REO agents are not willing to tell their clients that this is the way it must be. "Sorry, Loss Mitigation Assistant, but, by state law, I have to send you offers as they come in. If you want to stack them up and review when it's convenient, that's your choice. Just know that I must send as they come in." What's so hard about that? If you, REO agent, don't do that, are you SURE your state doesn't require it?

Now, as far as buyers agents who are too inexperienced or too lazy to follow directions clearly set forth in the listing agent's reo package, an email to them, cc'ed to their broker in charge saying the package is not complete, is not presentable to the seller, and no further communication from you will be forthcoming until a complete package/new offer is submitted, would be in order. That'd be representing your sellers to your best ability since that might be the offer they'll want. Yes, you're busy but you're still required to do your best for your client. Right? Make it easy on yourself and write one up and save it in your drafts folder so you can just copy and paste and it'll take you all of one minute to provide this higher service.

When it comes to price on an offer, I have submitted lowball offers before, but I was following MY client's lawful instructions. Getting my buyer the lowest price at the most favorable terms is, after all, my job. But you can bet there was no crazy contingency and that it was a complete package.

But those offering agents who send incomplete packages, or hound the listing agent despite a clearly stated time frame, need to get trained or get a different job. They are doing a huge disservice to their clients and to the rest of us realtors who work hard and long -- incessantly, really -- to learn how to do the job well and to follow the rules. I have no sympathy for them, nor for their brokers who unleash the untrained, unwilling-to-learn yahoos on the general public and their company's reputation.

And where's the Board in all of this? Might a little training be in order for those of you in heavy REO markets?

It is frustrating when we don't get a response to phone calls, when voice mail is full, when email goes unanswered. That said, how much is a result of the banks slow responses?

Colleen - Very timely post for me with lots of comments from both sides of the aisle. One thing is for sure, we all have STRONG opinions.

The problem with all of this is that there are no repercussions for anything pointed out in any of the comments. How many people are really going to take the time to report someone to the DRE. Any because nobody reports, agents get away with anything they want. I've had agents tell me to sue them if I want, because they know it just wont happen. Too much time, to expensive and if I get an attoryney or mitigation and there a wild chance that I lose, I have to pay all fees and it's not worth the risk. So, bad behavior is just part of the business.

Stacy - Here is what you said...

I present ALL offers unless they tell me not to. It is their choice, and I the agent don't decide what they want to see - the seller does. If an agent is making their own determination, that is not the right thing to do. Even though they want the top 3, I still give them a brief summary of the ones I am not sending over. (Bold added)

Sorry... but here in GA you wouldn't have a choice. The seller can choose not to respond, but if you don't present the offers, YOU can lose your license. It isn't their choice... it is the law. You might check in your state...

JUN

I am convinced that WHEN we return to a more traditional market - which we one day will, there will be a reassessment of agents we have been doing business with. Quite frankly, I've worked with a few good REO agents. But others have been among the most unprofessional and inconsiderate people I've encountered in 27 years of this business. I think many of us will remember these folks and they simply won't last.

I have taken REO listings (although I prefer not to) just so I can see what goes on behind the scenes and get offers for my buyers accepted. I agree with the REO agents who responded here.

What has been driving me batty is that I haven't even received receipt responses and then some 7-10 days after I submit the offer they just blankly send me the addendums or counters and expect me to go find my clients and hammer out a response in like 2 hours.

Frustrating

I recently had an REO agent tell me that the Lender he was representing allowed him to choose what offers were good enough to present.

Maybe you should have that statute put on the cover sheet for the offer! Possibly they didn't read because they are too busy being incompetant.

Colleen I personally have not run into this sort of thing, but a friend who's an agent has encountered three different agents in the past couple months that simply won't return her phone calls, EVER, to answer questions. Without answers, the buyers won't even consider writing an offer and now everyones time was wasted looking at a property that gets no response from the agent! Really bad representation of our industry!!

I think most of you made some great points! I think we can all agree that there are too many BAD agents on both sides. Let's hope all these idiots get out of the business! We need to fight for stricter laws and qualifications. Requiring realtors to have a degree would probably wipe out 70% of them alone!

JUN

Bravo!!!! I too have had some very unethical REO lister behavoir. how about not doing your mandated by law agents dilligent visual inspection? Just because it's an REO doesn't mean you can write REO on the paper like the banks do. Your license requires you do to it!!!!!

Having held a license since 1986 I have seen this REO market before. There are, like any other business some that don't play by the rules as a matter of fact they make them up as they go. 2 plus years ago in SW Florida when we again were beginning to experience the REO market there seemed to be a lot of disorganization and lack of follow up when working REO's. It took months before it worked itself out so don't lose hope. The market has a way of weeding out the unethical or incompetant agents.

We have been very fortunate in this area as most of the REO agents are great to work with. So long as everyone understands that when an agent has 300 plus listings they don't have time to elaborate on how the process works. It is our duty as agents that if we are not familiar with the process to get familiar with it in order to be the most efficient. I cross check all the data that is entered in the MLS as many of the agents are not from this area and don't have the local knowledge. Many times I find great deals because of that.

Not saying that this applies to anyone reading this but there is much room for grey area. Our local REO agents spell out the procedure and as an agent if I do not follow procedure and present a complete package my offer may not be seen if it is incomplete. The bank will just move on to the next offer.

I personally like the way it is done on "Bid Select" it seems to remove the grey area and provide a level playing field for all.

I work as a buyers agent and you can be sure that I make it my business to know the procedure inside & out as I want my offer to be the most organized one on the table.

JUL

Colleen. That is a sad fact that many Agents in California are also sitting on a pile of offers before they send them to the Bank. The DRE has no manpower to police such practices. Its a shame.

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