Asset Management & Recovery: THE REO LISTING Part 3 of a Series

Usually there is a pre-listing period.  During this time, the lender may ask you to arrange the following:

1. Do a BPO to assist the lender with determining a list price.  Sometimes the lender will agree with you and sometimes not.
2. Change the locks so you can get in and out. 
3. Install a pushbutton lockbox so other vendors can get in and out.
4. Have the property "trashed out".  This is the lingo for having all of the interior and exterior debris removed.
5. Cut the grass.
6. Sometimes, turn on the utilities.
7. In the cold months, have the property winterized.  Lingo for draining down the water and pouring anti-freeze in the sink traps, essentially.

If you are tasked with managing these processes, you may be required to find the vendors and pay them while seeking reimbursement from your client through their processes.  Many times, the lenders will manage this with their own vendors, but not always.  Our company provides a lot of these services as an accommodation.  Our ability to do this has help grow our business.  It is a good idea to develop a vendor list for these services.

MARKETING THE PROPERTY

This should be no different than any other property.  The more you do, the faster the property sells and the more deals you can do.  HOWEVER, a pig in a dress is still a pig.  10 pictures and virtual tours are usually overkill, but not always.

As a minimum, you are expected to put a sign in the yard and place the property on MLS.  Many of the servicers also have their own website and you will be expected to place their property on their website.

We use print media to market properties as well as a large email blast list.  Using the email list, we sell many properties within a couple of days.  I urge you to consider email as a marketing tool. 

DISCLOSURE

There will likely be a document that will disclaim knowledge of everything, including possibly that the house even exists.

THE OFFER

When you receive an offer on the property, you will need to transmit it to your contact with the servicing company or the bank.  Remember, these guys do not usually work on the weekends so Friday offers may not be reviewed until Monday.  On Monday, there may be a large stack of offers on different properties, so it might not get reviewed on Monday either.  Make sure that any offer has a good 5 days on it for response.  Be advised, your contact may or may not be the decision maker.

When you do present the offer, it will likely not be a presentation of the entire document.  You will fill out an online seller net sheet that will have a place for NOTES.  You will describe price, days to close, concessions, etc.  The acceptance or counter will be based on this form.

In addition to the contract, there will likely be a sellers addendum.  This talks about AS-IS, penalties for not closing on time (buyer) and where the closing will take place.  The closing is usually going to take place at the lenders preferred vendor.

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