BPO’s = REO’s Myth

Ok, now that I have your attention, let me share some valuable insight into the BPO = REO myth. Not every BPO gives you the opportunity to get the REO. Truth is, it rarely does. To understand this, you need to understand the BPO process. BPO’s are generally ordered after an offer has been submitted on a REO or Short Sale. That’s right, after the offer so, obviously you have no chance of getting that property as a REO. So, some argue that the BPOs get your name in front of the Asset Manager….ok, yeah it does but, how many people do you think your are competing with to get the attention of the Asset Manager by using their BPOs? Not the best way to get their attention, if you ask me. Lastly, BPOs give you invaluable experience that REO Asset Managers require. Now this is actually very true. Most of the time, if you are lucky enough to get an interview with an Asset Manager, one of the first question you’ll get is, how many BPOs do you do? This is because it tells the Asset Manager how active you are in a particular area and therefore, sheds some light on just how much “experience” you have in evaluating Fair Market Value. Oh, I almost forgot, those pesky little Default Designations / Certifications. So do they offer anything for you….well, mostly not. Unless the Designation / Certification training is offered directly by a lender or the lenders exclusive REO outsourcer. So, that is why on our home page, you will only find an exclusive handful of designations / certification and professional membership organizations that are vouched for by our REOPro Members. So, be very careful when buying that certification / designation because, it may not do a damn thing for ya. So that reminds me, here is a great blog of mine you might want to read over, “REO Designations, what is your opinion on them, are they worth it? And REO Schemes you should watch out for. So, how do you get that elusive REO? Well, I am going to reference one of the very first blogs I ever did here on REOPro, follow this link to learn more, How to start doing your first REO. Hope this helps out. Good luck

Jesse I see this on the REO-BPO group I help monitor on Yahoo. Newbie agents thinking that BPO's are the gateway in. I established a whole business doing BPO's. At the height of the boom I was doing 80-100 a month. They did not net any direct listings at all! I got into the REO sales side from clients I was doing BPO's for. I recall the day Land America called, asked if I could do an 'occupancy' check for them. They went on to say that I was the 3rd agent they called, the others 'would not return my phone call'!! I was agast! In an hour and a half I had the thing done and in the web site. This then led me to other work, eventually into Res Net. But you are very, very correct, that if an agent is looking at a BPO on a property to net the property listing, they will have a long wait.

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Comments

Frank Popeleski February 22, 2009 at 6:19am

Jesse I see this on the REO-BPO group I help monitor on Yahoo. Newbie agents thinking that BPO's are the gateway in. I established a whole business doing BPO's. At the height of the boom I was doing 80-100 a month. They did not net any direct listings at all! I got into the REO sales side from clients I was doing BPO's for. I recall the day Land America called, asked if I could do an 'occupancy' check for them. They went on to say that I was the 3rd agent they called, the others 'would not return my phone call'!! I was agast! In an hour and a half I had the thing done and in the web site. This then led me to other work, eventually into Res Net. But you are very, very correct, that if an agent is looking at a BPO on a property to net the property listing, they will have a long wait.
Stephen D. kady February 14, 2009 at 2:29pm

That is true, only if it is a short sale. If property is in default and headed towards foreclosure then a BPO will be needed and may turn into a REO property.

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