RealTown's RealTalk

IN all due respect toward Lindi in Houston I have to agree that here game plan in dealing with REOs and such makes all the since in the world except when it boils down to the final line in her statement.

On REOs, my main concern is beating out the other offers... many are listed at half their value from 2-5yrs ago... and we have so many investors.

The question I have is this. How does an investor know that half of what a property sold for 2 to 5 years ago is a bargain in today's market? If a property sold for $300k in 2005 and is being offered for $150k today, IS IT A BARGAIN? Who knows what anything is worth in this market? Isn't that what the hesitation is all about? If market value today is only half of what it was in 2005 then what is to compel the investors to believe it will be worth more one year from today? We all know that people have to have a roof over their head. So does it make a difference if the monthly obligation is being paid to a lender or a landlord and is there a difference other than who holds the deed? We've all been lead to believe that the American Dream is the ultimate investment for the future, that's why we've been lead to believe that " Government Mortgage Backed Securities" is the safe haven for all our retirement accounts. We've been lead to believe that everybody pays their mortgage and or rents. So how do we determine future value if the mortgages and guaranteed insurance premiums are not being paid that back those investments? Everybody seems to be scratching their head asking the same question, why are we being asked to borrow more money that we or the lenders don't have to heal our ailing economy? Isn't borrowing money what got us where we are today? How long is it going to take us to realize we can't enjoy the luxury of wealth by borrowing other peoples money for half a life time (30 year mortgage). Especially when that money is losing value? Isn't that why the cost of Gold is almost a $1000 an oz? After we purchase all the gold available what do we do when we want to invest again TRADE butter for gold or gold for guns? Either History is the results of random disorder or well designed misdirection for our own good. This market is the design of a lot of people misleading a lot of people. And it's aways motivated at the voting booth of change and hope. Who doesn't want change or hope, doesn't everybody from all sides of the aisle? I find it amazing that the focus of all our misery is aimed directly at Washington and the greed of those who have what the rest of us want. Maybe we expect to much from those who weld power over all of us? But isn't that what we desire? What is anything worth today and what will it be worth tomorrow?

Lindy..."REOs have less emotion... should be much easier than resales"

I understand Lindy.. your post to all of us made sense in some respect.. except tell my first time buyer that there is less emotion.. They would fail to agree...

As for the HVAC guy.. that's all well and good, BUT, today I called twice and was told they were having issues with getting the costs for the particular unit they needed from manufacturer.. I was happy to find someone to go out the next day. It's getting hot here in AZ, we have hundreds of homes that have had their AC's stolen or destroyed and everyone is working triple overtime. Guess there are some business' around that are recession proof especially here in hot/dry Arizona.

I am sure the REO agent has an assistant who I would be happy to talk to.. but AGAIN, no one answers the phone or responds to email. I don't need a half hour conversation, I just need a once sentence answer. I am ALL ABOUT using email.. would be happy to never talk to an REO agent.. just answer my questions, assistant or not I don't care.

Thanks for your responses though.. I do appreciate yours and everyone's comments. I am still not convinced that the way it is is the way it HAS to be. REO agents have the banks/sellers to deal with, I have buyer's to deal with.. why not try to expedite a sale versus stiffle it?? I HAVE worked with good ones and it was a smooth and easy transaction.

Gloria-

Here is good article on the art of getting REO business. Contrary to all the trainers out there selling their courses and designations, it is not that easy.

http://rismedia.com/2009-04-28/its-not-too-late-to-get-your-share-of-the-reo-market/

Steele V Propp, Foreclosure Specialist

Hello Gloria,

Last week I asked an asset manager about some of the obviously unqualified agents out there. She stated that their company had over 40,000 agents set up in their network. They are very well aware that they have issues as many of these agents have no clue what needs to be done when you receive an REO assignment. This creates a huge problem for the asset manager as well as the client who owns the property. At this time many of the asset management companies are in the process of weeding out the agents who are inept, non-responsive and quite frankly incompetent. One asset company fired over 1200 agents recently, which was nice to hear.

On the other hand, many agents with no REO experience want to be assigned listings. Unfortunately, most of them have no clue what is actually required and when it comes right down to it are unwilling to make the sacrifices required to keep the banks and asset managers happy. There is a common misconception that REO agents just list the properties and sit around raking in the money, which couldn't be farther from the truth. Many of us are called out to properties at all hours of the day and night and are constantly dealing with the associated issues and responsibilities associated with these properties. We work on the assignments for weeks and sometimes months prior to being able to list them and with no guaranteed pay. It can be a very nasty job at times, for example when I had to enter a four-plex with a raw sewage leak, deal with homes so infested with roaches that they literally fell on me when I walked through the house and crunched under my feet, not to mention evicting the continuous stream of squatters who break into the properties in some of the more seedy locations.

Just want to show you another side of the "glamorous REO agent".

Mike Ward-Central California-The REO hotzone
mikeward1948@yahoo.com

I couldn't agree more about some REO agents not doing a professional job. We also have non REO agents doing a pittiful job also. One REO home I have a neighbor helping me watch, has been left unlocked several times after showing, I have found the key left in the dead bolt, on the ground and missing completely. All agents should double check and make sure they have left the property secure. None of us need the homes vandalized due to careless agents. It doesn't matter if it a REO property or occupied property, all agents should do their best at all times.

"Last week I asked an asset manager about some of the obviously unqualified agents out there. She stated that their company had over 40,000 agents set up in their network"

Mike, thanks for the post and information. Eventually maybe one dept will talk with the other and they'll be some turnover.. however, where are they going to get qualified agents? Does qualified =experience to the Bank? Prior to the last couple years agents who specialized in REO's were few and far between. So when they fire all the unqualified agents who probably lied on their application about how much experience they have won't they be extremely careful going forward to not get in that bind again? And if they tighten up their qualifications, won't that even leave more agents out of the loop?

I can't honestly say I want to be an REO agent with 100 properties to manage, but I could handle 6-8 comfortably, and so could a lot of other agents. I think the banks don't realize that many times the agent that they are giving a modest number of REO's to is also getting a modest number from 10 other banks and they simply can't handle it. I am busy without REO's but I would be happy to do a good job for ONE bank that would give me 6-8 properties to sell for them and when one or two sell I get one or two more..

If I were smart I would go to the big banks who have lots of inventory in certain areas like CA, NV, AZ and FL and propose a "job fair" where agents would actually be interviewed.. Set certain guidelines for minimum requirements, do background checks to see if what they are saying is true etc. The banks should take what value is left in their assets very seriously and hire agents like any other employee, give them a day of training, whatever.. it would cost them a lot less in the long run I would bet.

Gloria Handley, RE/MAX Achievers Chandler AZ