Special offer

RE~KEY if you dare.............

By
Real Estate Agent with Altera Real Estate

So I was assigned a REO listing in Orange County and it was occupied. I went there the first time and I rehearsed exactly what I was going to say all the way to the door. i had butterflies and sweaty palms. this kind of thing makes me nervous. After I knocked and no one answered I rang the door bell. It sounded like a party going on so I gave them some time to get to me.

When the door fianally opened I looked up at a 6 foot man and asked if he was the home owner. I being 5'4 was semi intimidated but I knew I could scream loud and had pepper spray on my key chain. He told me he was and I explained to him that the home was taken back by the bank and I was sent to offer them cash for keys. He stared at my face while I talked and all the while behind him I could see many, many people in the home. I felt so bad and I finished off my cash for keys presentation with how a forecloser is not as bad as it used to be and it would be worse to have an eviction report on your credit immediatly following a forecloser. The man then was quiet for about 3 seconds and then started laughing. He told me I was a stupid little woman and closed the door.  I stood there for another couple seconds and then ran to my truck. I sat in my car and let everything sink in and again i felt bad for him but at the same time I knew I wasn't stupid!

I had to check the property every 2 weeks as to vacancy and report back to the asset manger. I counted 4 families living in the property with several kids. I figured by the time I could get acces to the inside the house would be in shambles. Several months went by and I got a call from the lawyer for the eviction and she told me of a scheduled lock out and I needed to be there with her, the locksmith and sheriff. The asset manager wanted me to make sure before the lock out was scheduled that they were still there. They weren't. Then they wanted me to re-key the property all by myself??!!..

I was scared. The locksmith didn't care. I was standing there waiting for the locksmith to do his thing all the while hoping the owner was long gone. The pop went the lock and he opened up the door. Mr. Owner and the several families were long gone leaving behind some trash but for the most part the home is in great shape!! Custom flooring, cabinents, paint I mean I was expecting the worst and now I am very shocked as to what was behind the doors. I was still scared but now I am the only one with the keys so I am not as worried as I was before.

I have RE~Keyed several homes over the last couple months and this one was by far the biggest surprise! Good surprise!!

Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Good for you! 6 foot shadow must have gotten your attention!

May 12, 2008 01:27 PM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Sounds like it would be a little intimidating.  Glad that the house was not trashed.

May 12, 2008 01:46 PM
Bo Buchanan
Kettley Realtors - Oswego, IL

Sounds like you handled it well. It's always a weird experience when you have to evict someone in a Bank Owned Home.  But most people who are staying that long know exactly how far they can push the envelope - and push it to the max!

May 12, 2008 01:49 PM
Sarah Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtor® in the Nashville TN Area!

Oh, my, I know what you mean.  You never know what you will find.  One time I went to a house and it was a mess!  All kinds of debris everywhere.  The neighbor said she thought they moved out 3 months ago.  So I ordered 'trash out' people to come, and told the lender it was OK to have re-keyed.  In about a week, I get a sad call from the wife.  Said she was at the house to get her stuff, and was locked out.  I let her in and she got out what she wanted.  I won't even go into how the bathroom looked, and that the first offer we got, had a contingency to replace the toilet, it was so gross.  I took chlorox and draino to that sucker one day (not in the same day, chlorox one day and draino the next, or vise versa).  Anyway it cleaned up.  Yuk!  

May 12, 2008 01:50 PM
Jason Bhattacharya
ARDENT PROPERTIES - Chesterfield, VA

First of all-- congrats on your first CFK offer.


What I would have done -- is asked him to step outside to chat briefly-- rather than let anyone else hear what I was telling him.  Losing your house is bad enough-- I tell the people that I'm working with to tell their neighbors that they are just moving for some other reason (save face).


And in regards to the rekey-- I send my contractors by themselves --since I seldom have time to meet for a rekey.  However, if you had to be there with the lock smith--- then HOPE THAT HE WOULDN"T RUN FASTER THAN YOU!!! :)

May 12, 2008 01:55 PM
Stacie Cunningham
Altera Real Estate - San Clemente, CA

No one in the home could hear what I was telling the man due to how loud the kids where. From now on I have a friend who is a Sheriff who said he would go with me so my future CFK's will be handled much different.

May 12, 2008 02:07 PM
Jason Bhattacharya
ARDENT PROPERTIES - Chesterfield, VA

Ahhhh Grasshopper,

 

You have learned the true secret to CFK --- Offer Dougnuts to anyone with a badge who will go with you!! :)

And I'm glad that no one could hear-- It's tough to lose your house-- especially, to have some stranger just come up and knock on the door.


Try doing a lockout--with the occupants right there!  There was one in Richmond - where they opened the door to a Police Officer (the evictee) -- Had a gun pointed right at them (including the Sheriff).  Yeah, I bet that was an interesting one!!

 

-Jason

 

 

May 12, 2008 02:42 PM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

I have been working the REO market for a while, whenever I do a CFK, my I drive a junker of a car, dress down and be very non confrontational, I take time to talk with the occupant (they are no longer owners) and be very understanding, I don't buy into the story or blame anybody, I know what my objective is and work to get the agreement signed and get the home back in good condition for my client.

May 12, 2008 05:31 PM
Tina Merritt
Nest Realty - Blacksburg, VA
Virginia Real Estate

To me CFK is so scary.  I would NEVER go by myself.  People in desperate situations do desperate things and I don't want to have it taken out on me.  I'm glad it all worked out for you.

Tina in Virginia

May 12, 2008 11:31 PM
Andrew Baumbach
Homestead Realty Inc. - Milwaukee, WI
Greater Milwaukee Real Estate

I have never worked in the REO arena, very interesting stuff here. It sounds like you're getting this down to a science Stacie.

May 13, 2008 02:25 AM
Jason Bhattacharya
ARDENT PROPERTIES - Chesterfield, VA

Ya see-- When you get into REO -- You are able to afford two cars!! One is a junker-- and one is a decent one... Andrew-- Will you be my mentor (In Cartmans voice -- from SouthPark) ...


LOL

 

Andrew hit it dead on the head... They are no longer owners.  Also, most of them know that you are not the person who failed to pay their mortgage.   They are mad at the bank (let them be-- Those ARMS are HORRIBLE --I agree with them)..

 

Then I tell them that I'm going to give them money -- and that gets their attention!!


 Just keep plugging away at it!

 

-Jason

May 13, 2008 12:27 PM
Laura Moore Godek
Laura Moore Godek, PC - McHenry, IL

An agent in our area went several times to a house and talked to the owners about their forclosure and eviction.  She discussed cash for keys.  The owners paid little attention.  When the sheriff failed to show up at the eviction she found out she was at the wrong address. Drive vs. Ave.

May 13, 2008 06:36 PM
Anonymous
Laura

That is soooo funny and so something I would do!! And then Blog about!! LOL

May 13, 2008 07:16 PM
#13
Jason Bhattacharya
ARDENT PROPERTIES - Chesterfield, VA

Laura,

I did that-- it's quite embarassing!!!  So I use my Treo-- show them the email-- and ask them to verify it.  One guy was quite upset that I was walking his yard-- like he didn't own it... LOL

 

And Stacie, you are welcome to knock on my door anytime ... ;)

-Jason

May 14, 2008 03:24 PM
Frank Sauer
CENTURY 21 Garner Properties - Independence, KY

I've had quite a few rekeys done but have only had to do one CFK.  The owner said there must be some mistake and she would have to consult with her attorney.  I guess the attorney wasn't much help because within a week they moved out.

May 15, 2008 05:10 AM
John Calvert
Desert Sun Realty - Boulder City, NV
Broker Salesman, Desert Sun Realty & Associates

Wow. Good job with that one. If I can offer some advise from my (few) yrs of REO experience...

Leave a letter on the door and do the negotiating over the phone. Most Banks/Management Companies have letters available.

I would be happy to share horror stories about shotguns and pitbulls. For example, A good friend and mentor, who has been doing this for 20+ years, had an owner unleash his pitbull on him. He has gladly shown the scars on the back of his calf where the pitbull ripped into him.

I've also been surrounded in my car with a parked car infront of me and 2 SUV's behind and to the side of me. Worse part is none of the "bad events" ever happened in the "bad part of town".

Although, I also have stories of going up to houses with scantly clad ladies opening the door.

Oh-la-la.... Only in Vegas, baby.

May 15, 2008 09:48 AM