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REO Brokers "Pocketing" REO Listings Without Seller's Permission!!!

Over the weekend it was brought to my attention how a major REO broker seems to have an internal policy of putting REO listings in "Contingent" status as soon as they print the MLS printout to upload to RES.NET even though they don't have an executed contract. Had suspected as much but had not seen proof of it until recently. That is an unethical and probably illegal game some broker's play. Not only is it not fair to buyers agents and their clients but it may also limit the sales price the financial institution might receive for their assets. Has anyone else experienced that in their market and what have they done to curve such activity?

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Sorry to hear that. It's so common and that's why I prefer the listing side to the selling side.
This is all good feedback that will help change the REO industry for everyone's benefit.
WOW! Hey Carlos, It is me, Ashley! I have experienced this personally. There is really nothing that can be done unless there is a whistle blower under the roof. We know that wont happen because the hired help is getting a paycheck.
With such little inventory, it is nothing short of a land grab on behalf of some unethical brokers for themselves and thier clients!
I know a few of the "biggies" that we both are familiar with in Vegas that operate on this calibur. I cant point a finger and publish whom, but for we REO brokers that are considered the "little" guys, we dont stand a chance of putting a stop to it.
It is absolute feast or famine in this city, as you have pointed out. Some of these 'biggies" have always operated like this. However because times are tougher than before, it is only recently become candidly noticeable.
If anyone has any solution to the problem, then let me know.
Maybe we should put up a bounty! 10K for a whistle blower with evidenced improprieties for unethical REO brokers.
My thought is a good sanction by the Real Estate Commisssion for this kind of behavior would inject a little morality into the industry.
Reading all these comments of how WE (us!) can be so corrupted (let's be honest, that's what it boils down to.... CORRUPTION!), truly saddens me. It reminds me of a specific event back in 2004 as a newly licensed agent PROUDLY attending a motivational seminar on setting goals in RE. I was proud to FINALLY be part of this wonderful and elite (I thought) world of licensed RE agents. How exciting! To my surprise, just about everyone I came across, say coming or going out of the ladies room, seemed unfriendly and almost bitter! I made a comment of this fact to my then broker, who replied with something like "believe or not, most people in this business are in it for the money and are otherwise miserable" What?? I was shocked! For years I thought it was a privilege to be able to be in this business! A Realtor®, as I know now, so how can this be possible? A another shock had come earlier in my training when the instructor asked the class "do you know why there are so many rules in RE?" Everyone paused (we were all new) waiting to hear the answer. "To protect the public from YOU" said the instructor. How sad, I thought! Well, I am a PROUD REALTOR® (as I can see all of you here are also), I follow our code of ethics as I promised I would, I stand for and protect the rights of the public and those I represent, I respect my follow REALTORS® and their clients, and no amount of money will deter me from doing what is right and in my clients’ best interest - at all times. If I come across someone not abiding by OUR rules/code of conduct, I report them. WE ALL HAVE TO TAKE A STAND EVERY TIME. Those who look ONLY after THEIR OWN interest have no business in this business. NONE.
Could Not have said it better myself
I work woth Indy Mac Bank and the listing agent can not do both sides They are clear you work for them and them only maybe this will be the trend.
I cannot see this being a trend because they would lose buyers and also quality agents. What's the point of advertising for the seller if you cannot do anything with the inquiries you get? What do you do when a buyer calls your office about one of your listings with Indy Mac that your not allowed to sell yourself?
I also work with IndyMac. I have not seen anything in the broker instructions that states the listing agent can't sell the property to a buyer that inquires on it. In fact, when entering the offer in their system, there is a drop down menu to select: 1. listing and selling agent the same 2. listing and selling agent different. I have a buyer's agent on my team, so I work with very few buyer's, so it is seldom, if ever, that I have both sides.
oh, you would not believe some things that you see, and they don't even have to be REO agents. This market has brought out some real devious people. I live by the saying and belief that What Goes Around Comes Around. Oh and someone needs to report it, unfortunately you don't have direct access to their asset managers :(
A few asset managers are incognito members of different REO groups and surf most of the REO websites.
Carlos - unfortunately this does happen and these agents continuously keep getting business - as a former asset mgr I started using and training agents that were not deeply imbedded or had a high number of REO listings, in large cities I would use several agents on a rotating basis. This really helped me "weed out" the bad ones! I just heard that Citi found 48% of their properties were not being maintained and that they were overhauling some of their agents. I am in the DFW area and there are still agents doing REO's that I fired when I was an asset mgr for various reasons. I feel sorry for the banks but my hands are tied. The best thing is to ask another realtor their honest opinion about a particular agent, then make up your own mind if you feel that agent is trustworthy.
I agree with Carlos in that providing the MLS history as proof of marketing to the AM is the best way to deter the pocket listing problems. I would imagine that all MLS sytems have this feature and what a accurate picture it provides at no extra cost to the agent or the client. Eventually I would like to believe these agents will be weeded out of business or change the way they do business in order to stay in business. The playing field would once again be fair to all parties.


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