RealTown's RealTalk

RE: REO Agents. Quite frankly I think some REO agents are lazy. I see remarks in the MLS like, no availability calls will be returned, email for lock box code, email for showing appt. I handle REOs. I am grateful for the business and I return or answer all of my calls on my listings. I have combo lock boxes for the contractors and supra boxes for the agents (this enables me to see how many showings etc). I was working with a buyer and the agent remarks said for showing go to the web site and request a showing. I did that twice and left messages. I never heard back from him. No wonder why some selling agents are upset with REO agents. The selling agents are the ones that sell my listings and I appreciate their business.

Conversely, I find some selling agents frustrating at times. I put in the broker's remarks call listing agent before writing for instructions on submitting offers. I amazed how people can not or refuse to following instructions. I have them call me so that I can tell them what I need and where to fax the offer to. One of my clients, Countrywide requires the buyer be preapproved (not required to use them but pre approved) through them. I am amazed at how many times offers will just show up without someone calling me to let me know it's on the way, or faxing me a copy of the MLS print out of the listing ( I still don't understand what that's about), not including the CW preapproval on CW listings, addenda I don't need, and not submitting documents that I do need.

I have found this market brings out the best and the worst of people. Either they are very good, competent, and professional or just plain incompetent.

About half my business is REO and it takes more than 80% of my time. As a buyers agent I make sure to educate foreclosure buyers that every aspect of the transaction is distressed. Property- distressed,Sellers agent- limited service provider with greatly reduced commission, Title problem- always, and if you have a problem good luck. The seller may cancel the listing, send the property to auction or just plain lose the file.

A foreclosure used to signify a distressed property and today REO companies are encouraging me to promote the fact that it is a foreclosure, they know that the general public perceives it as a "good deal". Real Estate professionals educate themselves and their client to the changing market conditions and practices while others complain and blame.

Frank Cobb

Remax Muskegon, MI

info@frankcobb.com

Neal, I'm not sure why you would ask agents to contact you before submitting an offer... I surely wouldn't. Anything you need to tell me, like Countrywide preapproval, or special addenda, etc., should already be available to me, in the MLS listing.
(Not meaning to sound harsh here, I'm just in kind of a hurry... )

I am NOT going to alert you, or any agent, that I'm preparing a contract, so that you (or your best buddy) can light a fire under an in-house lukewarm buyer... or even some other outside agent might get wind of the fact my offer is coming in.... I want my contract to catch you by surprise.
When it is all ready, I will call you to verify whether you want it sent to your home or office.

You may be honorable, and I may be honorable, but common sense dictates we be as cautious as possible..

Lindy in Houston

I have represented many, many buyers in REO transactions and I have had a wide variety of Listing agent experiences from the absolutely lazy horrible agent that won't return ANY message until I end up on their doorstep to get my answers and am then asked why I am there to which my reply is "if you would respond to any of the voice or emails I have sent I wouldn't be here" to the wonderfully attentive and respectful who know it's hard and know that we must all work together to get the job done.

I think you just have to hang in there. Things will get done however I am very attentive to the dates, timeframes, etc and if I think for one minute the banks delays in getting me back what I need will hinder the close, I don't just sit back and hope things will work out, I get on it and try and work with the listing agent in making sure that they know the buyer is not at fault so no penalties should be incurred by them.

Get everything in writing!!! Even if you have a conversation over the phone, put it in an email so that you have proof of what was said.

Mostly I think that the REO agents are good and are trying their best. Unfortunately a few bad apples are spoiling the bunch.

Aloha

Our company features the majority of REO listings on the island. How did we get them? One of our agents has a long standing relationship with a variety of lenders and kept that relationship going through the boom years. It's surprising how much of real estate is based on long term relationships with a variety of people. Consequently, suddenly jumping into BPO's (which can work) doesn't always reap instant rewards it takes time and years to develop. Keep in contact with your lenders that you develop now and don't drop them on the next round.

Secondly, I. I call the agent and request a showing a couple of days in advance. I also email them with the same request and they usually respond. Less time than that and you are expecting agents not to have vacations, an overwhelming busy day themselves or never a health or family issue in their lives. 24 hours or less means you need to keep on the phone and search for listings that you can show on short notice until you get enough together for a showing . If buyers call me in the morning and want to see listings in the afternoon I 'splain to them that I need to schedule around several people (owners/realtors/tenants) and will find a few quick views (if I have the time but don't tell them that) or THAT I FIND IT BEST TO SCHEDULE A MEETING AT MY OFFICE TO MEET<ANALYSE and show them listings on our Big Screen TV and save hours of their time and mine. It works every time and then we schedule another show meeting in a couple of days. You also develop rapport (or not and move on to the next client)

SCHEDULING AHEAD is the answer to looking ineffecient. I also (if I have time and absolutely with high end clients) do the showing loop ahead and check the lockboxes, property etc. and make appropriate corrections.

Thanks for your insights and experience about reo's. I am seling some reo's without big problems. But still I envy those who have reo listings, especially while I am capable of selling. But not as listing agent.

I tried hard last several months and still trying. One thing I want to bring here is that lanaguages can be big stumbling block preventing me from getting the listings? If it is, Fair Housing Law is not working properly. Eventually somebody might bring this issue on the court table.

How do you think about it ? I am a renowned Korean broker, and educator. I want all asset managers seriously think about fairness of distribution as stated by Gloria though we have a little bit different argument.

Lender should have at least one bi-lingua or any one who takes care in their asset department. The world is seemed to be unfair. But I never complain about it. But it does not give enough excuse for the lending institutuion to avaid the consequences of their behaviors.

Lindy, the reason I have agents call me is so that I don't waste a lot of time with sloppy, incomplete, etc., offers. Most of my properties sell with multiple offers, the most recent one with 23 offers. I am not going to call everyone to let them know an offer is coming in. I tell the agent to call me so that I can have what I need no more no less, it saves me a lot of time and makes it easier for me to presen their offer, period. The amount of time I spend having to call an agent after submitting an incomplete offer can be substantial. I don't have time to guess what the offer is. By the way, when the agents do call me I NEVER ask what the offer is. I just want to make sure it's complete. Most seem to understand this and know in the final analysis it's to the other agents advantage and I explain this to them. With all due respect I find your reasoning flawed, and offers that show up with out a call or incomplete indicate to me the agent may not be capable of following isntructions. If they can follow instructions at the outset how good are they going to be in the transaction. I always say if it starts out bad it ends up worse.

Neal.... my reasoning is not flawed.... I've been on both sides... I also know that some REO agents are involved in business partnerships with other REO agents (I wonder when that ever gets disclosed to competing potential buyers... not), and they buy some of these REOs themselves.
How many times have we ALL heard a listing agent say "Well, you'd better hurry up, I'm expecting another contract..."?

In any case, I respect most of your postings, and agree with you probably 90%-95% of the time.... but if you tell all agents to call you BEFORE submitting offers, just so you can "reiterate" what you've already stated is needed..... then there were 23 (TWENTY-THREE!) phonecalls, which would pretty much take up an entire day. Now, that is some flawed reasoning.

Yes, there are some idiots out there, that don't get all the addenda, or don't fill in all the blanks, or don't get the pre-approvals, so what? If they lose enough deals, they'll get it right some day.
Yes, I do know how bad they can be.... I have many shocking stupid stories, too....
Your 23 phone-calls will not assure a problem-free transaction...
And, to paint ALL Realtors with the stupid-brush is rather insulting. Most of us will simply read the requirements, do what's needed, and if you've provided the proper info, it should be fine.

Lindy in Houston