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.

By
Real Estate Agent with The Holman Group SA585212000

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.

Comments (6)

John Mayer
Oikos Realty, Cape Canaveral, Cocoa Beach Florida - Cocoa Beach, FL
Your Beach Area Expert

Nathan - You have stated current REO problems perfectly. The pencil pushers at the banks don't have a clue and some REO specialists can be jerks to deal with. I recently asked a listing broker if he could take a few more photos for my buyers up north (only one was posted). Since I was 30 miles away and he was right next door, it didn't seem like an unreasonble request. His terse response was that if he had to take more photos of every property, he wouldn't get anything else done. He was renovating another home as we spoke and also told me that his profit margin on these REO's wasn't worth the effort. -- John Mayer, Cape Canaveral, FL.

Jan 28, 2009 03:12 PM
Charles Fischer
Housing Market Realty - Merritt Island, FL
Professional Real Estate Services

Nathan:

as an investor, this has created more opportunity.  We can buy these properties at below market because the retail buyers find REOs difficult to deal with ( as you correctly state).  I have been hearing rumblings by many agents wanting to force the banks to spread out listings more evenly.  It may be that the asset managers like only having to deal with a few agents rather than many.  They are leaving money on the table in many cases, but it seems the Feds just keep giving them more!

Feb 09, 2009 10:57 AM
Vince Divarco
DUCTZ of Tucson - Tucson, AZ
DUCTZ Air Duct Cleaning of Tucson & Green Valley

Nathan,

If you have any home buyers that are looking to clean their air system prior to move in let me know!  We the abundance of bank owned and abandoned homes on the market this is even more important than ever!   We specialize in the removal of pet and smoke odors from air ducts.  Home inspector is saying the dryer vent is likely clogged?  No worries, we can take care of that as well.  Let me know if there is anything we can do for you or your clients!

Vince - DUCTZ

623-466-8625

Feb 22, 2009 02:17 AM
Anonymous
Amy

Hi all,

I am looking for direct source REO SFR bundles in the $5M range

for California both northern & southern.. Can

anyone refer me to a legitimate direct source.

My source only focus' on $10M to a billion and

doesn't do the little stuff.  

Thanks,

Amy Dods

Stonebridge Realty, Inc

619-520-1360

Apr 09, 2010 10:20 AM
#4
Anonymous
Amy

Hi all,

I am looking for direct source REO SFR bundles in the $5M range

for California both northern & southern.. Can

anyone refer me to a legitimate direct source.

My source only focus' on $10M to a billion and

doesn't do the little stuff.  

Thanks,

Amy Dods

Stonebridge Realty, Inc

619-520-1360

Apr 09, 2010 10:21 AM
#5
John Puplava
ABC Home Inspections,L.L.C. - Prescott, AZ
ABC Home Inspections,L.L.C.

hi Nathan,

How are you doing today.I just want to introduce myself to you my name is John with ABC HOME INSPECTIONS. If I can assist you in any Home Inspections. Please call me.

Thank You,

John with ABC HOME INSPECTIONS

602-471-7384

Sep 20, 2010 05:48 PM