Bypass Agent for REO Property?

Question

Hi all,

Just curious here. I've run into a few agents recently that have been a pain to work with (i.e., not fast enough, incorrect info, etc). For the sake of curiosity, are these agents mandatory in working with the bank and their property? Is it possible to send offers in directly to the REO department without an agent acting as middleman?

I'm open to all opinions and suggestions here, as I'd like to make the process more efficient than it currently is.

Thanks,

Vic

Account Closed · Answer

Vic, Are you dealing with the listing agent or a buyer's agent? Assuming that you are focused on listed property find a good buyer's agent who will deliver. Then let them deal with the bozos. Build into the schedule the fact that some of the time you will get bad info and be prepared to adjust. If you have a problem with an agent and the issues are material then consider speaking with the broker they operate under (if there is one). Maybe they need a bit more training. If you conclude a deal with a seller and the listing agent was not up to the standard for the area then consider providing feedback to the seller. They may choose to select a different agent if the present one is not working that well. Only do this after you buy so that you have more creditability as a buyer who completed the deal. Feedback is generally welcome but it might not change the choice of agents the bank is using. If there is no feedback a change is even less likely. If you thought the listing agent did a great job then positive feedback is also a good idea.

Account Closed · Answer

The above is incorrect. Any owner (bank or otherwise) can sell their own property in the open market. A license is required to broker a deal where the agent is not a principal (has no ownership stake or other rights in the property). The laws are set at the state level. Banks are only the owner of the property when they are on title (REO is the term used for the property at that point). When the property is in foreclosure the bank is still only the lender and is not the owner. Recognizing the subtle differences is important when you are working short sales, foreclosures, REOs and other ways to buy and sell. By extension a bird dog is operating illegally if they are trying to be paid based on the successful completion of a RE transaction between a buyer and seller where the bird dog is not a principal. Off topic but clearly an area where people are also confused. John Corey

Account Closed · Answer

The banks and asset managers have to sell through Real Estate Agents/Brokers. Banks are not licensed to sell real estate. If you are buying bulk reo packages, the Compiler is the closest person to the bank as Midas already mentioned.

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One more thing on owners selling their own properties. While banks aren't, many asset management firms ARE licensed real estate brokers. This is how they're able to earn listing referral fees from REO brokerages such as mine. In many cases, this is their primary source of revenue.

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Can you bypass the listing agent? ABSOLUTELY NOT It's easier to deal with a thousand agents across the country (whose paycheck is partially based on how nice he/she is to the asset manager), than it is to deal with 500,000 buyers complaining about how long it takes to get a response to their offer. Also, banks don't have the time to deal with the thousands of incorrect/incomplete offers that are submitted each day. It's important to note that the duties of an REO listing agent go far beyond those of your average agent. Just ask anyone that's had to help with evictions on a few crack houses; Or having to visit a property once a week and make maintenance and utility payments for 4 months before ever listing the property. When you make your offer directly to the bank or asset manager, that offer is sent back to the listing agent; in some cases (very few), this act can cause the agent to be looked upon in a poor light. If warranted, so be it. But if not warranted, you're only going to make the agent look upon you in a poor light. If the agent just isn't giving you the personal service that you would like, welcome to REO - consider taking 4rmgt's advice. On a related note... Banks CAN sell without an agent. Remember, Federal law doesn't permit them to BROKER sales, but just like any other property owner, they're afforded the legal right to sell their own property without a license. Of course very very few do this, as it's very tough to sell for a reasonable price on the open market without a pair of eyes and ears on the ground. It's more common in the commercial arena, and with smaller localized banks.

Account Closed · Answer

Just about every time I contact the bank, they refer me right back to the agent. It is a pain, but sometimes you have to work the system. So rather than remove them from the line, find out how you can work with the agent. See what motivates the agent and get them on your side. Maybe even the agent will start calling you the minute they get they get the property from the bank before they publish the listing.

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the banks want to deal with as few people as possible, that is why they contract out to assett managers and compilers. that is about as close as you are going to get.