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Who's your Daddy?? (or your seller)

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Real Estate Agent with Century 21, Preferred Properties

I don't know of a single agent who would call you about one of your listings and ask "Who's your seller? Why is it then that so many agents feel perfectly comfortable calling an REO agent about a foreclosure asking "Who's your bank?"

It didn't used to be quite so prevalent but I think that there are a lot of hungry agents out there. I know several who are singing the blues here in the Lake Oconee area and suddenly this market segment is looking pretty good to them. Well, that's fine. Welcome aboard. But be prepared to do your homework and pay your dues. It takes hard work to crack the REO market and we cherish our personal contacts with banks and asset managers as if they were made of gold. Because they are. This is a pretty steady revenue stream for someone who plans to work hard. A lot of effort goes into being a sucessful REO agent and most of us who are doing well at it have been in this market for years. It's not blind luck, it's not a fluke and it's not any different from representing any ordinary fair market seller. Banks are entitled to every bit of confidentiality and ethical conduct we have to offer and our responsibilities to them are the same.

So, for future reference, when you call for information on one of my listings I will be happy to share any information with you that I ethically can. But don't bother with "How low will they go", "What are the other offers?", and especially my pet peeve "Who's your bank?"

Happy Closings ;)

Comments(5)

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Laura Gray
RE/MAX Realty Group - Gaithersburg, MD

Chris - There will always be other agents who will want to "KNOCK" the King/Queen off of the mountain. We have been taught to play that game our whole life. But a fair and just King/Queen usually has nothing to worry about they just smile wave and keep the carriage moving.

Everyone knows that this "Reverse" boom will also end and then there will be new Kings/Queens and new agents trying to figure out how to knock them off of the mountain next.

Jun 23, 2009 02:36 AM
Julie A. Black
KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI
CLHMS, CRS, GRI, Realtor, Broker

I also get asked that a lot too. You have to be careful on the "other offers" questions. The code of ethics may not allow you to disclosed that with out the banks permission.

Jun 23, 2009 06:52 PM
Chris Oliver
Century 21, Preferred Properties - Reynolds Plantation, GA

Laura, I don't think it's so much a 'Knock' as it's just thoughtless. Somehow they don't equate banks as sellers or clients and see nothing wrong with the question. My point being - there's plenty wrong with it. Just because a property is REO doesn't mean the rules are suspended.

Julie, My SOP is to tell them only if there are multiple offers and if there is something full price or better. Evidently, this is policy for a lot of REO agents and that is where the bidding comes from. I know I appreciated knowing if my lowball isn't worth writing. You do  have to be very careful with what you disclose though and protect the banks (clients) interest at all times. Thanks for the input.

Happy Closings ;)

Jun 24, 2009 12:00 AM
Rudy Detgen
Troop Real Estate Inc. - Moorpark, CA
Realtor, Real Estate Agent, Homes, REO - Moorpark, Simi Valley

Hi Chris,

In the past when I have been asked "who is the bank" I've told the buyer's agent"the Duetsche Bank in Germany". This usually stops them in their tracks and at the same time I'm telling them the truth. The Duetsche Bank is who bought the mortgage backed security. Sure, I'm working for the one servicing the loan but when all the smoke clears and I get the CD/DVD of my transaction from my broker, it says "Client-Duetsche Bank" on it!

Agents not doing these listings don't understand the depth of what is happening behind the scenes. I know it took me awhile to figure out all the players. When my "asset manager" approves an offer it has to go to senior asset management approval, which means the entity who owns the MBS and if there was any PMI involved their approval as well.

It's a very BIG question "who is the bank?" as there are many players with a stake on the listing side; and you are absolutly right when you consider your seller's position. I for one know who I work for when involved in a transaction and it sounds obvious to me that you do too.

Rudy

Jun 24, 2009 06:09 PM
Chris Oliver
Century 21, Preferred Properties - Reynolds Plantation, GA

That's so true Rudy. We work for the sellers and some of the questions I get sound as if the buyers agent doesn't think I have any client responsibility at all. Personally, I'd like every agent to have to handle just ONE of these puppies and then they would understand. LOVE the Deusche Bank. Try getting up their food chain!!

Chris

Jun 30, 2009 01:30 AM