So, You want to be an REO Broker...

By
Real Estate Broker Owner with Ron Lee at Re/Max Gold

This is my third lap, if you will.  Having been in the business since 1978, I've seen three full market cycles. The slow cycle for most agents comes when homes stop selling overnight and inventories creep skyward.  This is when you need to ramp up for REO's.  (REO = Real Estate Owned) This is the shorthand used by the industry to discribe the inventory of property owned by the financial institutions. Most of which come through foreclosure.

Being an REO Broker can be very rewarding.  One such individual in Los Vegas claims to hold more than 400 properties that are listed or prelisted.  Another in California's central valley said that he has 105 active and 120 in the pipe.

If you want to jump in, there are places you can go start the process.  I recommend becoming a member of the National REO Brokers Association (NRBA) then look for The Insiders Guide to REO  it is a complete "How To" book for successfully listing and selling bank-owned properties. 

You will need to register with what seens like thousands of Asset Management companies .  Most start by doing BPO's or Broker Price Opinions. These pay $25 to $100 for a mini appraisal with photos.  Some people actually make a full time job out of just doing BPO's.  5 per day average $50 ea and boom $60k a year job with little overhead.

Some of those BPO's will get you in the door at the REO dept. Then when you get an "assignment", the fun begins.

You get to go to all kinds of neighborhoods to see if the property is still standing and determine if anyone is still living there.  If they are, you get to infom them that they no longer own the house and attempt to negotiate a prompt move. Most lenders prefer to grease the tracks by allowing you to offer Cash for Keys.  What they usually forget to tell you is that they expect you to write the check and submit your proper paperwork and copy of the check for reimbursement.  I have about $15,000 out waiting for reimbursment. I can't immagine what the guy in Vegas must be going through.

Then you get to make reports, find contractors, haulers and cleaning people, get bids, submit for approval, make sure the work is performed properly, pay them and then wait to be reimbursed.

Okay, the house is now ready for sale and you get the "Listing". It looks like no listing most agents have ever seen. Don't read the fine print, it will only scare you out of the businss.

Bing, bang, you get an offer. Well you upload it to their website, fill out forms and wait for a responce that usually resembles a short HUD-1 with the offer on the left and changes on the right. It's their way of making a counter offer. Be sure you also find their standard "Addendum". Take the addendum and email and create a counter that they will not sign until the buyer signs and gets it back to them. Then it goes up for Lender approval, Mortgage Insurance approval and 15 other people in the chain. Of course the Buyer has a Verbal acceptance and is expected to close in 30 days or pay a per day penalty.  In the mean time the Buyer's lender is twiddling his thumbs because he can't start the loan until he has a signed contract that he is expected to close about a week after the paperwork actually trickles back down to the Buyer.

Are we having fun yet?

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Rainer
5,356
John Conca
Century 21 Select Real Estate
CENTURY 21 Select Real Estate

I wanted to share this free list of REO asset managers and there website information that I got.  I signed up with just about every one of them.  Now in less than three months I have plenty of BPO's and two REO listings, one of which is already in contract.  Just do what ever you can to get started and be patient.  Good luck.



Company



Link

Accredited

http://www.accredhome.com/

Assetlink

http://www.assetlinklp.com/

Atlas 

http://www.atlasreo.com/index.html

Aurora

www.res.net

AVM

http://www.assetval.com/

Badisso

http://badisso.com/

Bankers Assest Management

http://www.bankersassetmanagement.com/

Bank of America

http://reointelligence.com/uploads/bank_of_america.pdf

Bayview

http://www.bayviewfinancial.com/

Brighton Real Estate

www.brightonreo.com

CalReo

www.calreo.com

(CMS) Carrington

www.carringtonms.com

Chrisley

http://www.chrisleyam.com/

Citi Financial

https://oms.citiresidentiallend.com/oms/jsp/login.jsp

Countrywide

http://my.countrywide.com/BizPartners.aspx

Electronic Mortgage Corp. (EMC)

https://www.emcmortgagecorp.com/EMCMORTGAGE/

Equity Pointe

http://www.equitypointe.com/

ETC REO

http://www.etcreo.com/

Executive

http://www.executiveam.com/general/registration.cfm?ContentItemID=Registration

Fannie Mae

https://www.efanniemae.com/is/npdcvendors/index.jsp

Fidelity (LPS)

http://www.fidelityasap.com/registration.aspx

First American

http://www.firstamreo.com/application.asp

First Preston

http://www.firstpreston.com/re_broker_registration.asp

AHMSI (First Option)

https://ahmsi3.com/servicing/home.asp

406 Partners

www.406partners.com

GMAC

REOTRANS.COM

Green River Capital

http://www.riocentral.com/prospectivebroker.aspx

Group Financial

http://www.grpcapital.com/contact/index.html

Goodman Dean

http://www.goodmandean.com/

HSBC

http://www.reotrans.com

Home Eq

http://www.homeq.com/reo/reoProperties.do

Integrated Asset Services IAS

http://www.iasreo.com/workwithus.aspx

Indymac

http://reo.indymacbank.com/reo.ext/presentation/BrokerApplication.aspx

Land America

http://www.lendersreo.com/application.aspx

Lighthouse Real Estate Solutions

https://extranet.lrescorp.com/vreg/index.cfm

Litton Loan Servicing

https://www.littonreo.com/litton/DesktopDefault.aspx

Loan Servicing Solutions (LSS)

14

Keystone

https://www.keystonebest.com/agent_login/agent_login.asp

MDWEBB

http://www.mdwebbinc.com/contactUs.aspx

Nationstar Mortgage

https://www.nationstarmtg.com/Realtors/RealtorApplication_Step1.aspx

Metro Pacific REO

http://www.depotpoint.com/news/?p=126

National City

http://www.nationalcitymortgage.com/

Nations Reo

http://www.nationsreo.com/brokers.cfm

National Default NDS

http://www.defaultservicingllc.com/become_broker3.htm

New Vista

http://www.newvistareo.com/app.php

NPR Capital

http://www.nprcapital.com/

NREOB

http://www.nreob.com/Public/Registration/Broker/RegistrationAgreement.aspx

Ocwen

http://www.ocwenbusiness.com/bs_loanservicing_res_bi.cfm

Old Republic

http://www.oldrepublicdefault.com/Default.aspx

Olympus

http://www.olympusasset.com/agent/agentdata.php

Owen REO

http://owenreollc.com/index.asp

Phoenix

http://www.assetonemg.com/Website/coprofile.htm

Premiere Asset Services (PAS)

http://www.pasreo.com

PMH Financial

http://www.pmhfinancial.com/Registration.htm

PNC

http://www.realtyservices.pnc.com/

Premiere REO 

http://www.premierebpo.com/premweb/Home/ContactUs.aspx

Real Estate Disposition Corp. (REDC)

http://www.redcgroup.com/index.html

Reo Experts

http://www.reoexperts.net

REO World

http://www.reoworld.com/

REO Financial Asset Services

http://www.reofas.com/

Single Source Property Solutions 

https://www.reotrans.com/index.cfm?

SNSC

http://www.snsc.com/ReoPropertiesBroker.aspx

Sun Trust

http://suntrust.res.net/

Tactical REO

https://www.disposolutions.com/clientlogins/dst/default.aspx

US Bank

http://www.usbank.com/

USRES

http://www.usres.com/vendors/real-estate-brokers/

Wachovia

http://reo.wachovia.com/wbreosubscription.aspx

Washington Mutual

http://www.wamuproperties.com/

Wilshire

https://www.wcc.ml.com/Homes.aspx

 

April 21, 2009 02:20 PM
Anonymous #32
Anonymous
Anonymous

John

 

 Thanks for the list above.

May 02, 2009 05:36 PM
Anonymous #34
Anonymous
Anonymous

Ron,

You did a good job of briefly describing the life of an REO agent. I think that it is a good business model. I like the challenges. It is not your normal life as a real estate agent. Some great info in the comments.

Any agent who is trying to get REO's should start on that list of links that John put up. That is some good info there baby.

www.jamesegallagher.com

July 15, 2009 10:03 PM
Rainer
22,541
Marlo Barge
On The Fly (OTF)
Commerce Financial Inc./BMI Investment Capital

Hello Everyone,

It is excellent pleasure to meet everyone acquaintence and I look forward to working with a top decision maker in the near future.

I have a consortium of buyers that our looking for deals all across the US especially the diamond states.

There looking for distressed commercial assets, Bulk REO packages, NPN, and PN in real estate.

My buyers our extremely motivated to take down any deals that are offered at a deeply discounted price.

We have LOI, POF and all necessary financial documentation required. Our clients are looking for product Ranging from 5M - 1B at 60 cents on dollar or even less.

With that said, Please send contact info. so we can open up a dialogue.

Look forward to possibly working together.

Please note: we our looking for seller exclusives deals.

Can someone assist with this issue?

Kind regards,

Marlo Barge/CFO
619-785-5956
310-279-0276
bmiinvestmentcapital@gmail.com

February 10, 2010 02:21 AM
Rainmaker
103,221
Robert Slick
NRBA, RDCPro, Trident/CCAR MLS
Beach and River Homes

Good informative overview. Free list always a good thing.

October 04, 2010 10:46 PM
Anonymous
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