Do banks really want to sell their foreclosures?

And the listing agents have so many foreclosure listings from the banks that they can't even respond to selling agent inquiries - and the banks are incommunicative too. UGH! It is hard to keep a buyer interested when the review process drags on and on.

Recently we have heard that the banks are so swamped - even more so than before - that is is almost impossible to keep things in order. Plus many around here immediately get multiple offers, so there is often quite a lot of confusion. ~Rita

I have to agree with Dwayne the REO agents here if I could I would short sale everything so they would have to deal with me being a real jerk like they are to me.

Nope!!! 

And most don't communicate cause they don't have a phone, a computer, or a stamp.  And if by chance they do...they don't know how to use them.

Pretty sad, huh.

Hey there all. 

First, I have to state that I agree that selling foreclosures are difficult, but is it the REO AGENT (meaning listing agent) or the ASSET MANAGEMENT COMPANY that are "jerks".  I can speak from several years of experience when I state that being an REO agent, or not, has no bearing on failure to communicate.

I personally am the REO agent for my market area, meaning, I list over 90% of the REO listings in my county and parts of the two contiguous counties.  Personally, I communicate very well with the selling agents, whether the listing in question is REO or conventional.

On the other hand, when I am the selling agent on another agent's listing, I face the same failure to communicate you seem to be having with your REO agents.  I would like to propose the possibility that it could be the listing agent's inability to perform all of their job functions, or need for a personal assistant, that are leading to the inconveniences you are experiencing.

ASSET MANAGEMENT COMPANIES, handle the listing and selling of the property, they are normally contracted by the bank, or in some exceptions, the bank has their own REO deparments that act in this capacity.  They are, I agree, extremely difficult to work with.  Consider however, next time you are frustated waiting for a response, how frustrated the listing agent is as well.  Unless you have done several of these, as the REO agent, you cannot fully understand where the listing REO agent is coming from.  Each ASSET MANAGEMENT COMPANY has it's own schedule and timelines they follow.  Some AMCs have their own purchase agreements, so it is a good idea to ask the REO agent if they have specific forms prior to writing an offer.  Second, many ASSET MANAGEMENT COMPANIES discount the listing agent commission (a 4/3 split or 4/2 split favoring the selling agent) in the meantime, the REO agent is doing BPOs continually as in every 15 days, paying the bills on the property, doing weekly checks of the property condition, etc.  The reality is that the listing agent is probably more anxious to sell the property than YOU are.

I guess what I am trying to say is:

1. Not all REO agents are "jerks"

2. Not all agents that don't return your calls are REO agents

3. You don't know what the grass is like on the other side of the fence unless you have been there

4. Follow the golden rule, treat the other agent as you would like to be treated.  9 times out of 10, I  do what I can assisting the buyer's agent in understanding the transaction too.  I can give you a list of agents who feel that I actually helped them represent their buyer.

Now to address Dwayne's question in the original post (The lastest struggle is that each time you put an offer in on a foreclosure you must get your buyer pre-approved by the bank that owns them. Is anyone else having problems with these crazy rules?)

Dwayne, if an REO agent tells you that your buyer has to be approved by THEIR bank, ask them to see it in writing, and check the legality of it in your state.  In California for instance, NOBODY can insist on who the buyer must use for financing  though I did have this presented to me by another agent when I was actually acting as the buyer's agent, and another agent represented the REO.  There are several companies, who will remain unnamed, that like to try to push their financing, however, in most cases your buyer does not have to accept their financing, as long as you can provide evidence that they have an approval from another lender.  The exception would be, if the home had structural or other problems that would make it unfinancable by other methods (most lenders use FHA standards as the "must meet")  The lender MAY require however, that the buyers provide proof of loan approval prior to acceptance of the offer, I am seeing private sellers request this same thing as well.

One final thing which all seem to be concerned with.  As the buyer's agents, it is OUR responsibility to explain up front to our buyers that if they choose to make an offer on an REO property, it is often long and drawn out.  My experience is that as long as they know this going in, and you do explain the addendums to them, they are fine with the whole ordeal. If you have problems yourself with the addendums and disclosures, ask the listing agent for their help, if they cannot or will not, take it to their broker.  I have on many occassions sat down with the selling agent, and when they were comfortable with it, their buyers as well, and answered all of their questions.  As an REO PROFESSIONAL, I feel that is part of my job, if they can't handle it, they are not cut out for the position. 

I hope that I have answered some of your questions.  I only ask, please don't group all of the REO agents in one category, there are some of us who are still the good guys :)

 Heather Salazar - Broker Associate - United Country Stevenson Realty

"FIND YOUR FREEDOM!"