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A Real Asset to REO Brokers

By Sandi Logan

Services for Real Estate Pros with Logan Real Estate Support

September 10, 2008 02:56 AM

Gosh, it feels so good be back with my fellow RAINERS! Things have been crazy busy (which is a real good thing J )

The REO market is a specialized niche and not for Brokers who hate to be too busy (is there such an animal?) In working with many REO Brokers, I am constantly amazed at the amount of work involved and the need for them to have working systems in place in order to make sure nothing (and I mean nothing) falls through the cracks.

The most constant thing I hear from REO Brokers when they contact us is that they have systems in place for the working of assignments, BPO's and the listing activities but seem to have neglected to have a working system for the closings. For the really successful Brokers in this niche area, they can have anywhere from 20-60 properties in the closing pipeline at any given time and with that volume, things do get neglected in simple hopes that they work themselves out. Some of the items that get overlooked without a working system are:

•· Financing Contingency

•· Inspection Contingency

•· Loan Status

•· Title Completion

•· Company paperwork submission

•· Repair Requests

•· Addendums Sent for Sellers Signature

•· Consistent Communication with all parties

•· Platform Tasks

•· Funding/Recording Status

•· Thanks to Parties who made it happen

Asset Managers and Banks have one goal: CLOSE THE TRANSACTION! Of all the tasks that an REO agent has to complete through the course of an assignment, getting it closed has to be one of the most important things to monitor.

Enter the "Closing Team"...... whether you have an onsite team or you sub-contract it out, this is an absolute necessity to not only creating a successful closing department but to also show your Asset Managers that you CAN handle what they assign to you all the way to the end. There is nothing more frustrating for an AM than to not be able to get an update on any given closing at any given time. I cannot stress enough the amount of times I have heard from AM's that it is very comforting to know that their REO Broker has invested the time to put a system in place that makes their job easier and gives them the confidence to issue more assignments because they know they will all be handled all the way to the finish line. And after all.....................isn't that always the goal?

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Robert Worthington

Worthington Realty - Manitowoc, WI

Close em up! Nice easy read post. Keep up the good work.

Sep 10, 2008 03:04 AM

Lynda Eisenmann

Preferred Home Brokers - Brea, CA

Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Sandi,

Good info. Sometimes I think it's like the hamster running around and around in the wheel in that little cage. Constant communications.

Sep 10, 2008 03:16 AM

Hope Goss

Ventura Property Shoppe - Ventura, CA

Ventura Real Estate

You make a very good point. I'm not one of those REO brokers, but I handle a high volume of clients buying REO properties - it would be awesome of the listing brokers had better systems for keeping things on track.

Paul S. Henderson, REALTOR®, CRS

Fathom Realty Washington LLC - Tacoma, WA

South Puget Sound Washington Agent/Broker!

I think REO brokers do a great job, but like you said it's not for everyone. Like Lynda said hamsters have a better way of knowing where they're at sometimes...

Sep 10, 2008 03:22 AM

Anonymous

C.J. Johnson, Broker-Trainer, CRS,ABR-REO Broker

I am one of those busy REO Brokers and I train other REALTORS on this subject. I have 18 open REO Escrows right now. Often the problem is in the "too many cooks in the kitchen" syndrome. Between my desk and the AM desk there is a pre-closer, closer, attorney, escrow, title, and others. The problem here is that Asset companies contract a company that is three counties away and do not provide any customer service to us because they think they will never have to work with us a second time. I will post my own blog on this dilema later today and I would love your feedback.

Sep 10, 2008 03:28 AM

Sandi Logan

Logan Real Estate Support - Gulf Breeze, FL

Hope, I deal with a lot of BA's who have a great buyer base for REO properties and their biggest gripe is the communication. I think that if REO brokers could bridge that gap in the closing department they would find that BA's like you who really work that niche will be more apt to steer buyers to their properties because of the closing processes that have in place and the results the BA gets.

Sep 10, 2008 03:30 AM

Mike Wong

Keller Williams Realty Southwest - Sugar Land, TX

Realtor: Commercial, Residential, Leasing, Invest

Sandi great topic. The REO Brokers and agents who balance all those listings and asset managers have all my respect.

Sep 10, 2008 03:31 AM

CJ - Very good point and it really also drives home the need for one group on the Brokers end that deal in NOTHING but the closing transaction. What I have found is that when one team or team member does nothing but handle this part, there becomes a system that helps to work aorund the problems in dealing with the "cooks in the kitchen". As a team, we develop systems that help the BA's to navigate around the chaos and to help the lenders to get the answers they need and for Title, Escrow and/or attorney to have a single source on the REO Brokers side where they get answers. While the Banks/ AM side can be very chaotic and with no real sense of organization, if the REO Broker keeps his/her side of the street organized and with purpose, those other issues fall to the wayside because there is a system in place.

I look forward to you blog!! Notify me when you have it posted!

Sep 10, 2008 03:38 AM

Freddy A. Saavedra

Essential Properties - Goodyear, AZ

I completely agree, closing and delivering the property on time is of the outmost importance. Thanks for the post, you just reminded me to look at my closings and see where they can be better.

Sep 10, 2008 04:59 AM

Heather Fitzgerald

REALTY WORLD-Harbert Company, Inc. - Greenwood, IN

REALTOR Greenwood Indiana Real Estate

Very good points that we all need to think about, the busier we get. And don't forget to take care of regular business.

Sep 11, 2008 03:08 PM

Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

I am not into REO's yet but plan to be in the very near future...this information is soooooo valuable to me at this stage. I remember when I was a brand new agent just out of school my broker told me then it was the best time I would have to make my presentation books. Later I would be much to busy. Same thing here. Set up the systems prior to the massive amount of business I expect to do and it will go much smoother. I will keep your contact info handy. Do you work on closinges in other states or just your home state?

Oct 06, 2008 12:25 AM

Eric Egeland

RE/MAX SUBURBAN - Libertyville, IL

SFR, e-PRO, CDPE

Thanks for the post Sandi,

REO agents need to stay on top of all of this...thanks for the reminder

Oct 06, 2008 11:28 AM

A Real Asset to REO Brokers

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