Coming soon: The problem with putting signs
on not yet listed REO properties
As REO agents, we are required to place our contact info on the property. I NEVER put COMING SOON on an unlisted property, because I have no way of knowing whether or not the "soon" part is true. I do not want multiple phone calls before I have listing information, but I get them anyway. If there is no For Sale sign, it is not ready to sell--it's that simple. If agents have clients who insist on calling the contact number on such a posting, I suggest that the agents need to train their clients better. Buyers need to call their agent, not the REO agent. As an REO agent, I don't want to talk to them or to the agent before the property is ready to list.
- When will it be listed
- How much will it be listed for
- How long has it been vacant (unless people were in it when I received the assignment, I have no idea how long it has been vacant)
- What condition is it in (that's a value judgment you will have to make when it is listed)
- Why isn't the house already listed
The property may sit vacant for months or years before the foreclosure process is completed and an REO agent is assigned to it. Bankruptcy laws vary from state to state, but a bankruptcy often slows the foreclosure process. They are two separate legal processes. Often, one process has to wait until the other is completed. Bankruptcy, however, does not STOP foreclosure, as a mortgage is a collateralized debt.
When the property is occupied (by significant personal property, previous owners, and/or tenants), eviction proceedings start. Sometimes an eviction action can be cut short when the REO owner offers Relocation Assistance, also known as Cash for Keys. That, however, also takes time.
After the property is vacant, property preservation actions start, including lawn maintenance, trash-out, rekey, winterization, and utility activation (some REO entities do not allow utility activation). Some REO entities will do repairs on selected properties. The property also has to undergo a valuation process, which usually includes an appraisal and one or more BPOs (broker price opinion). Sometimes, there are title issues which have to be cleared.
All steps have to be completed before the property will be listed: foreclosure, eviction, property preservation, repairs (in some instances), and valuation.
From the time an REO agent is assigned, s/he is involved in every step of the process; and, yes, sometimes the agent has to pay for services up front. But, I'd have to be clairvoyant to know when the property will actually list, so don't ask.
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