REO Agents?????

Question

I'm an REO agent representing many banks and doing very well. I am not very experienced with short sale listings though. Just read an article about REO being dead and short sales are where it's at. My experience with short sales have not closed easily or at all.

Question for other REO agents;

Are you going after short sale listings, and am I missing out by not?

What is your experience with short sale listings?

Question for other REO agents;

Are you going after short sale listings, and am I missing out by not?

What is your experience with short sale listings?

Joel Owens · Answer

Just to let you know if you are an investor,broker,agent,rescue company,whatever you are now REQUIRED by Federal LAW to follow these rules or face stiff fines and penalties.

http://www.ftc.gov/os/fedreg/2010/december/r911003mars.pdf

This APPLIES to residential real estate and does NOT apply to commercial real estate. It's a bunch of BS created by our current government and is nothing but more bloat in my opinion.

Yes if you are a Residential REO agent many of those are drying up as short sales are being pushed through before it forecloses.

So YES I know an REO broker friend who has paired down and completed about 800 residential short sales with a 90 plus percent success rate.

He is a beast at them and has it down to a science.

Now for me I work the commercial real estate side. On the residential side I have seen agents work like dogs to make a pittance in commission.

High time-low money equals a NO for me.You will need to put this MARS disclosure out as a broker/agent on all correspondance to all potential residential clients etc.

You also need to check if your broker allows for short sales and also on mortgage modifications if you are allowed to even help owners with that. In some states you are required by law to have a mortgage license or be an attorney etc.

Stan Jackson · Answer

Dustin,

Have you done a 12 month historical review in your MLS? As far as my area go, I noticed a trend moving to Short Sales more than 6 months ago.

The Kings and Queens of the REO business were showing less and less of new reo listings and starting to increase their Short Sale business.

I believe I read a report recently that NAR projects that 60%+  of transaction in 2011 will be short sales, leaving the other 40% to reo, retail and what not.

So, to answer your question (IMO), REO brokers have had to go back to basic real estate.  Meaning they are having to market for listings, as opposed to getting listings from the powers to be(banks).

The challenges involved in getting a short sale listing are different from that of the retail seller.  Most, or many, homeowners know the process and timeline for the foreclosure but choose to wait the day before the sheriff sale to allow you the opportunity to list the property.  Learning how to convince the homeowner that it is in their best interest to start marketing the property in early, can be challenging for those who are accustomed to simply getting listings handed to them, again IMHO.

Stan

Joel Owens · Answer

I will also add the payoff is different for an investor than for a broker/agent.

Some agents work for 6 months on a short sale starting out at 200k and ends up selling for 150k.The bank sticks the screws to the agent on the fee and after a broker split the agent makes maybe 1,250 before expenses and taxes!!!

Conversely the investor buying is getting a huge benefit now and in the future way above a broker/agents return.

I do very well on the commercial side and stay away from the residential side.

To me doing 2 deals for 125k in commission is much better than 40 deals running ragged.

Jimmy C. · Answer

Most of the REO listing agents I have dealt with seem too busy to even handle the REO's they have listed.

If you have time, I can tell you that short sales are an opportunity (at least from a buyers perspective).  From an agents perspective you are probably more concerned with the time it would take to do them and the likelihood of them paying off.

I know an agent who does short sales and contracts the negotiating and paperwork so he can focus on other stuff.  Of course he is not a big time REO agent though.

Dustin Johns · Answer

Thanks Rob. Sweet website!!

Rob Gillespie · Answer

Look up Joe Lieber, he is a BP member. He is a broker that does both short sales and REO. Plus he is an investor. I have been friends with him for ever, he is extremely knowledgeable he will be able to answer your questions.
I certainly have my opinions, but I am not a realtor. I am an investor. Good luck.