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COUNTRYWIDE REO STORY

By
Mortgage and Lending with United American Mortgage Corporation 407952

Just wanted to drop a line with regards to my research since this all began in July 2007.   As many of you have seen I was/am a Mortgage Broker.  Back around May 2007 I started noticing the trend with regards to Direct Lenders vs. Mortgage Brokers.  The lenders were looking to minimize costs, many wholesale operations were either being consolidated or eliminated.  Also the guidelines were less friendly to wholesale.  Even the rates favored Retail Lending. I decided that if I couldn't beat them I would join them.  I started working for Countrywide Home Loans ("CHL") under a great manager. We focused on distributing and training product and knowledge of CHL REOs / Shortsales.  I tried to get as many Realtors approved but things started going downhill too fast.  CHL changed the terms and soon only those with big pipelines and already approved with CHL would get REOs.  How could a new agent recruit Realtors with empty promises. It just got tougher.  We already knew as an industry which direction things were heading and then the sub-prime crisis unfolded.  Wholesale was now almost eliminated and the damage now effected the "Big Guys".   Being an honorable person I was to refrain from working as a Realtor so a choice had to be made: Focus on the dying loan industry with empty promises or go back to being a broker, but also sell property.  So I left CHL and picked up some short sales and specialized Real Estate. 

I wrote an article regarding BULK REO SALES ( http://activerain.com/blogsview/344381/NO-BULK-REO-SALES) and the rest is history.  

With the BULK SALES You find four types.  People with money, People who know people with money, REO SELLERS, and People who know REO SELLERS.

For awhile I just knew people with money and knew people who knew REO SELLERS.  Now regardless of what happens, this is fun I will admit.   I recently flew back east and met a great guy has found success in this endeavor. I have met many people and have been told I am somewhat of a celebrity in this arena.   Who would have thought? 

FOR BULK SALES ONLY:  Should you have stumpled accross this I suggest the following.

1. I KNOW SOMEONE WITH MONEY INTERESTED IN REOS:  Don't waste time trying being greedy!  Stop trying to get half or multiple points.  Your not in the game and may never get in.  Unless you know someone with REALLY DEEP POCKETS that trusts you chances are you only get ONE CRACK at this. Take a substantial finders fee (more than you may ever see) and let the BULK SALE VETS move the TAPE.

2. INVESTORS (PEOPLE WITH MONEY):  Be cautious!  There are so many frauds and speculators you may waste your time and the opportunity will either pass you buy or you won't know it if you see it.  You shouldn't give anything more than a scrubbed asset account or evidence of funds. By scrubbed I mean remove account number and name/address info.  Also state what you are looking for. (ie: Acceptable Regions, Investment amount, and what is an acceptable percentage range (30%, 40%, .50 per $) The assets or scrubbed POF is then presented to Seller's. 

3. REO SELLERS:  Its simple these people are the banks, lenders, investors with large property holdings. They call the shots.  Chances are unless they are comfortable working with an individual they may allow a Realtor to sell a few REOs.  BULK is typically reserved for clearing houses.  The clearing houses are the ones who distribute. (aka: sellers mandates, sellers agent)

4. PEOPLE WHO KNOW BULK SELLERS:  These people typically are insiders or have been speaking with friends who open their mouths.  I have seen employees working in an REO Dept. or Loss Mitigation Dept. for larger companies who are trying to make a fast buck with the info they know (shame on them). Be careful of these folk, most do not know what they are doing, but think they do.  However they do come with valuable info if they can lead you to the source.  This means nothing unless the REAL seller chooses to work with you.

 

Comments (2)

Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

Great post.  I followed you while you were blogging regarding Countrywide and were bombarded with requests even here Active Rain.  Glad you landed on your feet.  It is amazing and scary how much this industry has changed in the last 14-15 years, especially the last two years.

Jan 13, 2009 03:40 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Interesting info.  Thanks for sharing.  There are sure some big power players out there. 

Jan 13, 2009 06:20 AM