REO and Lockboxes

[Scott Morse]

Any heads up as to how to ensure the listing agent comes off the Lockbox code. It seems mighty rediculous that only one agent I have spoken to has given up the lockbox code so I can have myself or a partner first hand view the property. I'm just a newbie so maybe this is general protocol..... but its a hinderance.

My objective is to make sure I get my offer in on a home faster than the slower guy.... but not having access to the inside is pretty bad IMO. I had one realtor state they couldnt meet me there for 3-4days to show it...... while another investor with more capitol to risk may already have an offer getting accepted.

Thanks as always guys/gals

[Will Barnard]

Originally posted by Jeff Hennessey:

Originally posted by Will Barnard:

Originally posted by Jon Holdman:

Are you just dealing directly with the listing agent? If so, consider getting your own agent. They can get you in on your schedule.

While that is certainly an option, it is not really the right way to go in dealing with REO's. In order to be successful, you must go direct to the listing broker to offer the opportunity for a double dip on commissions (represent the seller - the bank, and YOU, the buyer) They will always like 6% over 3%!

That is terrible advice. The listing agent represents the bank and owes fiduciary accountability to the bank alone. The listing agent is NOT your agent. He/She does NOT represent you and is NOT looking out for your best interest. If you are willing to negotiate everything on your own and understand that you will have NOBODY representing your best interests in the transaction then by all means attempt to do it this way. It is almost always better to have someone representing your best interests.

Jeff, you are certainly entitled to your opinion but you are arguing with a proven method. I agree that the list broker has fiduciary responsibility to the bank, however, as an investor, one should be familiar enough with purchase and sales agreements and how to protect oneself rather than relying on some agent to do so. PSA's are very simple and with REO's, the only other major factor is the addendums, of which, an investor should also be familiar with.

I have purchased many REOs over the last few years and have given the listing broker both sides almost everytime. Agent representation/protection for my best interests is not a concern for an investor who knows what they are doing.

Now, if the investor is green and completely new buying their first REO, then perhaps having someone in their corner would be a good idea (but that could be accomplished by using an attorney!