I thought Real Estate was a People Business! CRACKING down on the Mega REO Agents!!

By
Real Estate Broker/Owner with RE/MAX Around Atlanta

One of the things I have always loved about Real Estate is it's a people business. Helping families and wonderful people with housing needs. But the want-a-be "Mega REO Agents" are turning our business into a joke! Lets keep in-line with professional ethics and serve the public well.

They insult most of us with the non-personal way of doing business. You can only talk to a voice-mail and email or fax any questions or offers to them. They only call you back a week later, should your offer get review by some Assistant working with them.  But on Saturday I called an agent to check on availability and her voice message was " Due to the large number of calls received on this number I can not answer your call, go to our website for information...". My message to her was, "Last time I checked this is a people business". Thankfully she did call me back with-in 5 minutes. Her property was available and I thanked her. We talked about her message and she agreed it needed to be changed!

My other problem is the "The Forcing of your client to use their Lender"(Wells Fargo is the main one). This can not be done! I understand nobody wants to work with unqualified buyers, and all agents should make sure the Buyers are qualified with a excellent lender. RESPA and "Banking and Finance" governmental agencies should be notified about these tactics. Buyers can choose their own lenders.

Then we have the "Multiple Offers". Out of the blue you find out now their are multiple offers on the property, funny the property has been on the market over 6 months!  I tell my agents do not allow the Asset Managers for these banks put your license in jeopardy, with fraud.

Oh, and one more, NET Commissions, Net listings are not LEGAL in GEORGIA!!! If they net your commission then that is a Net Listing (i.e. Agent gets paid on net of sell). How do you know what the banks net is! These banks work in all states, some states allow net sells, but NOT GEORGIA. Take a stand I have many times for my agents, we work very hard. I promise they will pay you the full amount or they can lose their license.

I am a Broker/Agent that has over 40 REO Listings, and we don't do business this way. We are working on a Task Force Team to make sure these agents remember you have a Georgia Real Estate License and the Rules of your license must be followed or you can lose it! Also we have a Code Of Ethics that should be held to the highest, during these tough times.

So, I am calling ALL Professional Agents to not allow deterioration of our business, speak up to these "Mega Agents", Report them to the Real Estate Commission, call MLS and FMLS and make them take this kind of wording out of the listing verbiage.

I will keep you posted on the task force. Happy Selling!!

 

 

Comments (12)

Melinda Earlywine
Century 21 Commonwealth RE - Lawrenceburg, KY
There's No Place Like Home When You Live In KY

I understand your frustration.  Since we are listing and selling HUD owned properties, I have picked up alot of buyers, investors and owner occupants, that are looking for a distressed property to buy.  There are some good REO agents that do call you back and actually answer their phones, but then there are others that never return your calls.  Last week I was in front of a foreclosure and the lockbox code they gave me wouldn't work.  In a panic, I called the listing broker for the correct code, he never called me back, never ever!  Luckily my HUD key opened the property and I was able to show my customer, but if it hadn't worked I would of looked foolish to a new customer.  I always return my calls promptly, even if I don't want to.  The bad ones don't value our time or money, but I'm really not sure

Feb 22, 2009 01:00 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

So many reo agents in Detroit act the same way.  I hope somebody steps on them a little

Feb 22, 2009 01:06 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

LeAnne, I agree with you 100% and have heard so many horror stories about the REO agents LYING to other agents (about receiving offers, submitting offers, etc.).  I would encourage everyone to document these violations of code of ethics and legal violations.  The behavior of some of these bad REO agents is reprehensible.

Join & pos your blog at http://activerain.com/groups/virtualoffice.

Feb 22, 2009 01:16 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

You should also post this blog to the "Short Sales Nightmares" group.  Short Sale and Loan Modification Nightmares

Feb 22, 2009 01:17 PM
LeAnne Long
RE/MAX Around Atlanta - Conyers, GA
CR,S ABR, CLHMS

I agree with both of you! I thought we got rid of the BAD agents on the the last downturn cycle...but they are coming back!  Lets take a stand! Get Involved..... lets keep Real Estate a people Business!

Feb 22, 2009 01:18 PM
Porter Deal
Lilburn Realty, LLC - Lilburn, GA
Lilburn Realty- Real Estate Services

I'm with you on the Reo agent's doing a better job. but I don't think one can not blame the REO system, it doesn't work. It's the only place where marketing is the red-headed step-child. In most of the business world marketing is king. I figure most REO's are selling for about 30% less than could because of poor management and Asset manager than don't know a "front door from a garage door". Last week I talked with an asset manager that three weeks ago was working at the phone company and never owed a house. this guy wanted to tell me how to do my job and I have 20 years in real estate and I'm the broker.

Feb 23, 2009 06:14 AM
Porter Deal
Lilburn Realty, LLC - Lilburn, GA
Lilburn Realty- Real Estate Services

I'm with you on the Reo agent's doing a better job. but I don't think one can not blame the REO system, it doesn't work. It's the only place where marketing is the red-headed step-child. In most of the business world marketing is king. I figure most REO's are selling for about 30% less than could because of poor management and Asset manager than don't know a "front door from a garage door". Last week I talked with an asset manager that three weeks ago was working at the phone company and never owed a house. this guy wanted to tell me how to do my job and I have 20 years in real estate and I'm the broker.

Feb 23, 2009 06:15 AM
Porter Deal
Lilburn Realty, LLC - Lilburn, GA
Lilburn Realty- Real Estate Services

I'm with you on the Reo agent's doing a better job. but I don't think one can not blame the REO system, it doesn't work. It's the only place where marketing is the red-headed step-child. In most of the business world marketing is king. I figure most REO's are selling for about 30% less than could because of poor management and Asset manager than don't know a "front door from a garage door". Last week I talked with an asset manager that three weeks ago was working at the phone company and never owed a house. this guy wanted to tell me how to do my job and I have 20 years in real estate and I'm the broker.

Feb 23, 2009 06:15 AM
Claudia Callaway
Palmer House Properties - Covington, GA

Hey LeAnne! "Hear, Hear!!" GREAT Post! I have only been working with investors for the past 4-5 months, all looking for deals in the foreclosure world - and I have some horror stories equal to yours! I'd love to know how you handle the lender thing - I had one buyer who lost the house because he refused to do business with their lender. What do we do?? I'm sick of this current market, just when we think that the downturn has gotten rid of most of "bad apples", we have a whole new situation with agents who are controlling the market and continue to give the rest of us real estate agents "a bad name!" Thanks for having the guts to say what I've wanted to say out loud but didn't - I'll think of you now when I know it's time to SPEAK UP!

Claudia Callaway

RE/MAX Agents Realty

Feb 23, 2009 09:49 AM
Gloria Bumanglag
CENTURY 21 Superstars - Rancho Santa Margarita, CA
GRI

If the agents only accept what they can handle, they would be able to handle their business better.   That would leave more business for everyone else.

I had an offer that the REO agent never responded to by fax, email or voicemail.  I added a notification to my email that was never acknowledged until the notification came back as email that was deleted.

 

 

 

Feb 27, 2009 04:50 PM
Anonymous
Josey

Leanne, I agree that REO agents are undermining best business practices that we all should be adhering to. I don't know what can be done! The violations of ethics is more common place than ever. Among not returning calls, they are screening and discriminating their offers and potential buyers. This is outrageous!!! I know some agents that even make up rules as they go along and place blame on the banks as if they requested to have potential buyers treated with such lack of respect. Some agents won't even let a potential buyer view a home without being faxed a pre-approval letter when their agent is setting up the viewing and has advised that their clients are pre-approved. The banks don't want to keep homes that they have foreclosed on because they are not in the business of being property owners but financial backers for homeowners.In this market who in their right mind would want to lose a potential sale based off their personal feelings and/or assumptions? What do we do with the agents of the world that feel it is up to them to discriminate and screen based on their personal feelings? Have you ever ran into such unethical agents and how do you handle them.

 

Thanks,

Josey

May 22, 2010 02:40 AM
#11
Laura T. Perry
Keller Williams Elite - Lancaster, PA
CRP, GMS, Award Winning Relocation Specialist

Stopping by to share our Re/Max RELO message -  http://actvra.in/4jHG

Nov 03, 2014 04:07 AM