REO'S and Short Sales - What a Mess

the listing agents are overwhelmed with the reos that they have..they really don't care about the condition of the house..most of them haven't been to the house since they listed it.

Do you pay for the maintenance of your REO listings? 

What surprises me, in addition, is the banks or asset managers who hand over dozens of listings to agents that do no marketing, put up one bad photo of house, do not return Realtor calls but instead direct you to their website to choose Option A,B,C depending on bank. 

I am amazed on a daily basis.

Short sales...they're a scurge. Don't get me started...they mess with realistic list prices as agents price them so low to get an offer to the bank...any offer...just so the bank will at least begin negotiating-then add another 2-6 months on that, if it even pans out.

This has always been a big concern of mine.  I have been in homes that the basement is flooded, water was left running till it got turned off by the city.  I have seen rats, I have seen trash ( bags of it) I have seen it all, in all price ranges.  Some of these homes I have to think the agent never stepped foot in the home, as our association will take the outside pic for you. 

I agree the agents are over whelmed by the number of REO's they have.  I have seen a few banks take responsibility and hire a person to mow, snow removal and clean the home, but I think this comes from advise of the Realtor. 

Who's job is it, who should pay the up-keep.......I guess you can go back and forth on that question.  With lending restrictions being so tight now, most of these homes would not be fanciable due to the condition.  Some of the homes that have had water damage now have a bad case of mold.  I have seen a wonderful $500,000 bank owned home top of the line everything, but will sit due to the mold problem, and it only keeps getting worse till the house is destroyed or some one buys it.

Steve & Kim,

Thanks for the post. I really like Anna's comments. The tone for marketing these REOs is really set by the lender/asset manager and what appears their lack of willingness to put forth the best effort to get the highest and best price. There lack of business savvy is astounding. They want top dollar and they refuse to invest to insure that the product meets the consumer's expectations and sells.

I hate to say this but the agents aren't overwhelmed.  When we didn't have as many foreclosures and short sales, agents were neglecting their listings.  Unfortunately there are professionals in this business and then others who are looking for a quick paycheck.  I know one agent who doesn't even take the time to put an under contract sign on a house when the house goes under.  Then people see it and want it and they are so disappointed.

Remember that for those of us who have been working in the REO market before it was the Hottest Ticket In Town banks were more solvent and still would not pay for repairs or maintenance. Do you want to know why? Because buyers agents and clients will not pay market value no matter the condition...sometimes you reap what you sow.

As for ripping on REO agents you need to remeber that I can find at any time in any office a listing for a 5 star caliber property where the MLS will not be updated, the brochure box will be empty the pictures look like a child took them.... on & on & on

Quite a few agents are gone and more need to go....but it is not and REO issue it is a lack of professionalism in the industry.

Having been on the "other side" as a Senior Asset Manager, I can say we did approve trash-outs, property preservation and routine lawn mowing.  Did we require bids -- at times -- but I don't recall ever rejecting an agent's request for initial trash out.  

Now, operating a Virtual Assistant company that assists REO agents nationwide, we see lots of reimbursement requests by the agents to REO sellers for trash-outs, board-ups, lawn care, etc.... These reimbursement requests, although time consuming, are being processed and reimbursement is received.

I think there are a lot of good REO agents out there that do take care of their properties.  It's just unfortunate that a "few bad apples spoil the whole bunch".

I have found that I need to send many photos and complain to get authorization to keep these properties up....with "some" Asset Companies.  Then after they authorize it, and I pay it, it takes "months" to receive payment.

There are some Asset companies that authorize these things "up front".  I agree with Paul Move. This is not an REO Realtor only area. I personally make sure my listings are as clean and showable as possible. I have seen homes in very poor condition, yet I am not privy to what is happening "behind the scenes".   And there are some Realtors who do not have the cash flow to maintain these properties.

To Michael's post, if the agents are so swamped, why do they keep taking listings?  Do they really think that a home w/o utilities in the July heat, human refuse in the toilets, an overgrown yard, and crap throughout the house will sell quickly?  I think not, it is listing that will sell eventually and most lisitng agents appear to be playing the waiting game. 

I'm not slamming all REO agents, just the ones around Northern VA that I have been through their listings. 

I'm experiencing the same issue's all of you are.  Un-mowed, no electricity, trash etc etc.  I've only been in the business 14 yrs and these homes are in bad shape.  I took a REO course and in this course was what you as the Agent need to do.  1.  Electric turned on 2. Install a combo and electronic lock box 3. Remove all debris 4. Minor upkeep of property and so on.  I just don't think the Lenders are following up and or keeping track of their properties conditions.  I've signed up with several BPO companies promising REO business !!! none after 2 yrs.  Does anyone have any good phone numbers to get into the REO business (doing it right).  Any help would be appreciated---OH Short Sales had 1 approved if the Seller would pay back $30,000 to the PMI company with no interest--this needles to say blew up the deal. My email is tom@tomdawe.com

A dead dog?  I thought I had seen a lot in these REO's, apparently not.

That is sad, that there is a dead dog in one of these properties. However, many agents don't get out to their properties to see the condition of it.

Wow, judging by the number of comments, you have really touched on a nerve. I think if you ask any experienced realtor and they will agree the customer service level given by many REO specialists is appalling. Why the banks put up with it is a mystery to me.

The way that I see it....the REO market is heating up and becoming more competitive for Realtors. I agree that if you do not have the capital to properly service an REO listing, then you'd better not take it because there are many other Realtors out there who would love to service your client in a more professional manner.