•Accompany the Sheriff on Evictions
•Secure & Re-key the property, deternine occupancy
•Turn utilities on in our name
•Have property winterized
•Coordinate the trash out (Some AMs have us store the personal belongings / trash for 90 days+)
•Ready the property for marketing including making repairs and improvements
•Pay the bills on all of the above & wait up to 120 days for reimbursements
•Handle vandalism, theft,vandels, squatters, animals, arson, gang bangers!
•Fill out BPOs and take Pictures of subject and comps.
•Marketing Prep Work - Photos, MLS data sheets, info box flyers, write ads etc
•List the Property
•Schedule showings (for agents who will steal the key is their buyers interested.
Rekey the property .
Rekey the property ...again
•Educate Co-op agents and get one day codes for those who are smartcardless
•Submit Offers through different portals
•Coordinate all details of the closing
•Keep all parties up to date
Do you have an opinion or preconceived notions of foreclosures?
What about the folks who lost their house ~ what do you think about them?
What is the cause of foreclosures in your area?
Who are the lenders in your area? Who are the Asset Managers?
Do you have any specialized training in REO work?
Do you know what a BPO is? Are you familiar with the various BPO forms?
Do you have the ability to front the money for Property Management?
Do you have a crew to handle the clean outs, lawn care, re-keying, winterizations etc?
Are you willing to take the time to educate the co-op agents on how to submit offers correctly?
Are you willing to explain the process to prospective buyers?
Do you have systems in place to handle all the details?
Do you have someone who can cover for you when you are sick or on vacation?
In my work as an REO agent, I have:
...been on a police raid that resulted in a drug bust of 3 known criminals. I was behind a tree, on my cell phone w/ the 911 operator while the police approached the home, shotguns drawn. My job was to notify dispatch if anyone ran by me. I was unarmed....that time.
...was visited by the sheriff as to why I was ‘breaking' in to a house (just assessing the contents and getting pics!)
...been chased down by unhappy occupants after I photographed their dwelling for my report
...been cornered by pit bulls and crack whores
...explained to a child why I was kicking his family out of their home 2 weeks before Christmas
...accompanied my clean up crew as they discarded stinking dead animals, pounds of human waste and a lot of drug-like substances from a house that was broken into numerous times and we evicted squatters twice!
...had as much as $29,000 in outstanding reimbursements. (Did I mention that YOU front the money?!)
...been called at 2 a.m. by a neighbor who thinks someone has broken into my listing
...become BPO Certified
...become a Foreclosure Intervention Specialist
...attended REO Conventions at great costs.
I'm sure by now that you get the idea that it's not quite the same as regular real estate. Just incase you were wondering.
Comments
Well said Jack!
My favorite part is that to market and sell a home we traditionally get a 3% commission. BUT when it comes to REO, we are expected to manage, maintain, and front money for these properties and for doing so much more work, actually take a 30-50% paycut under the premise that we'll make it up in volume (which holds true which very few of the banks right now).
I'm new to BPO's, REO's and Short Sales. Glad I found this website and you in it. What you mention is what I needed to know in advance. I only have 700.00 dollars left from my last closing looks like I'll have to wait before jumping in to this side of Real Estate. Thank you for all the helpful information you have supplied I'm extremely greatful for your input.
well said, this work is not for everyone, and not a get rich quick kinda job.
Excellent Post!
Your description is spot on....
My receivables hit $118,000 in October of 2009 ... all from National City Mortgage/ PNC Bank using Res.net as the portal-
I owned a police cruiser (former City of San Diego) that I would to drive for occupancy checks!
Good Times!