Time for a second look at REO

By
Education & Training with Corcoran Consulting & Coaching

By Bob Corcoran, Corcoran Consulting & Coaching

The numbers are nearly inconceivable and they continue to rise. A recent report by the Congressional Oversight Panel created in 2008 to monitor financial markets and those who regulate them, found that each month, roughly 250,000 new foreclosures are started, while 100,000 are completed.

With those kinds of numbers, you can expect your fellow agents and brokers to be jumping on board. Asset managers tell me that yes, competition for properties remains strong, but there's still room for agents to enter the field.

"There's still some life to live in foreclosures," says Stephen Sherman, chief operating officer at Green River Capital, an asset management company in Green River, Utah. "There are a ton of aged delinquencies waiting to hit the market, and we're always looking for good new agents to use on an  as needed basis, especially in new areas of the country where we haven't operated before."

Sherman's prediction: "REO will remain at high levels and we'll see a steady increase through 2012 or 2013, and the industry will do better this year than last."

And here's another good reason to reconsider REO. Sherman says Chase, the financial services giant, has now limited asset assignments to agents who are within a five-mile radius of the properties in the larger metropolitan areas with more than a million people. It used to be about 20 miles, so that increases the amount of agents we need and opens possibilities for more agents.

So what to do? First, if you don't have experience, get an REO certification (Sherman and others tell me it shows a commitment to the industry) and shadow or join a team that's already doing REOs.

After that, register with asset management companies as you can - almost all of them have online forms for agents to complete. Emphasize your training and experience as much as the form allows.

After that, asset managers say the next step is to network. Michael Hermosillo, director of operations at Precision Asset Management in Torrance, Calif., says he meets agents at various trade shows, at National Association of Realtors conventions and other meetings.

"Direct contact is the best way to get your foot in the door," Hermosillo says.  

And Phillip Greenberg, director of operations and marketing at SkyhillREO, an asset management company in Huntington Beach, Calif., says when you meet asset managers, hammer home your knowledge of REO, especially in your market.

He says SkyhillREO has properties in all 50 states so it's imperative to rely on agents for news about local markets. "I like it when an agent can update me with the number of REOs in their area, what they've increased by, and the days on market, prices over the last two or three months, that helps us see trends. We couldn't do it without them."

And once you're in, it wouldn't hurt to explore other possibilities for your services inside asset management companies. For example, Sherman says Green River has divisions that, in addition to its REO work, handle short sales and BPOs.

"When we hire, ideally we like to build a partnership with brokers who might be able to help us in those areas as well. We like for them to grow together with our company."

For information on our programs that teach you how to skyrocket your REO career, whether you are new to REO or a seasoned professional, e-mail REO@CorcoranCoaching.com

Let me hear from you. Please send any comments or questions you have to http://www.facebook.com/CorcoranCoaching.

 

Bob Corcoran is a nationally recognized speaker and author who is founder and president of Corcoran Consulting Inc. (CorcoranCoaching.com, 800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into the residential or commercial broker or agent's existing practice.

We look forward to hearing from you.  Sign up TODAY for your complimentary business consultation. http://www.CorcoranCoaching.com/bpw.php

Comments (2)

Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Bob,

In our area, the FNMA reos for sale in our county were 366 in december, and now they are at 608, four months later.

I have 6 REOs listed, but am looking to build that part of my business.

Thanks for this post.

Phil

Apr 18, 2011 05:13 PM
Jennifer Stupidest

DO NOT work with PRECISION ASSET MANAGEMENT (PAM) in Torrance, CA and work with any CHASE REOs. I was their agent last year and I quit doing REO listings for them. Most of their REO listings from Chase as seller/owner. I guaranteed you that they will be ended up with the program called Chase Communitiy Revitalization Program (CCRP). The program allowed other NON-PROFIT organizations to purchase the REO below market value directly from banks without going to public and finally they fix it up and Sell more than the Market Value for FHA folks or low/moderate income people who made very little down payments and bidded over the listed price on the MLS... They called that REVITALIZATION AND STABLIZATION PROGRAM???? I DON'T GET IT!!!! They will explode again in the near future or BUBBLE market will follow for these REO properties.... However, finally you will be paid ONLY $1,000 despite you worked your AS*S off for the pre-listing such as Eviction, CFKs, Weekly inspections, Utilities paid on their behalf, obtaining BIDs.... THAT'S RIDICULOUS!. There would be NO listings on MLS because Also, most of their asset managers have no clues about Asset Management at all. They are RUDE to Realtors and blasting emails to us with many stupid questions. They don't work with each others... Also, their payment is worst and long. The accounting department are all CLOWN and demanding many long proofs via LPS Invoice Management.... Boycotting THEM both PRECISION ASSET MANAGEMENT (PAM) and CHASE because your time is worth doing other real stuffs instead of spending wasted times and finally got paid ONLY $1,000. I am working with other Real estate agents to file complaints with CA Consumer Affairs, FTC, DRE and CAR and NAR about their UNFAIR Practices toward Realtors like us

Feb 11, 2013 09:47 AM