Agent Consolidation of REO Bundles by Asset Managers is leading to delays in the buy process and increases carrying costs through longer time on market.
As an REO Specialist and a Buyers agent we are seeing both sides of the market. Here in AZ, recent trends and buyer behavior are showing appeal of foreclosed homes drop, as buyers frustrated with delays and response times are starting to look at resale homes as a preference. Condition issues aside, this is becoming a problem that is more noticeable compared to about a year ago. I have seen some agent portfolio's in excess of 300 properties ACTIVE. On trying to do business with many of the teams with large portfolios, telephone calls are not returned, emails are not returned, delays and oversights are frequent and professional courtesy is thin. As a result my buyers are electing to look at alternative properties, which can either be private resale or foreclosed with better response rates. Time and time again I see truth in the saying "Once Bitten, Twice Shy" as buyers elect to passover a property because the listing Agent or Team was difficult to deal with. From an asset managers perspective I can understand the values and possible improvements by consolidating, but I ask all of those Asset professionals that read this, to stop and consider total cost. Indirect costs, and risks of over consolidation is real and more time needs to be taken to spread asset bundles out to ensure highest quality service, increased care, lower errors, reduced risk and minimize bottlenecks and delays in REO asset sale and servicing. As REO specialists we must be careful of over stretching our capabilities with too much inventory and lacking infrastructure or capacity to support it. Resources are cut to the minimum as margins for all are also cut. For this reason we need to look at ensuring greater distribution of assets with those teams that also have the skills and capabilities to service them to the highest of standards.