By Lillian Walker
RISMEDIA, Nov. 26, 2008-The lender’s goal is first for their properties to be managed and secondly for them to be sold. The bank’s objective and goal is to get the property sold in three months. So get your ducks in a row! Remember you are the bank’s eyes and ears and they are looking for you, the real estate agent, to be their property manager and take care of that asset until you execute the final goal of selling the property thereby liquidating that asset for them. In order for you to have a bank consider you for the job of an REO listing agent you must represent that you are prepared to do exactly that. So be prepared.
What you need to do next is:
1. Have a Marketing Plan. Some broker-owners can assist you with this if you don’t already have one. It will include the following points:
Have all your service providers such as lock smiths, eviction service companies, plumbers, electricians, drywall, landscapers, trash-out companies, pool, termite, roofer, handymen etc., register with the asset management company you will be doing business. It is imperative you have identified your team, spoken with them, and let them know that they will need to register with the asset management company and provide their license, insurance and bonding. I personally recommend having more than one of these contractors since you must guarantee the asset management company timely service or your listing will be reassigned to another agent.
Remember the banks are most interested in meeting health, safety and code requirements. Note: Banks select their own title, escrow, and attorney-and do require you have buyers qualify with them or a specific lender as a level of insurance the buyers have a lender that can perform the loan closing. This does not mean that it is mandatory that they use their lender.
2. Know your city police department phone number, retired senior volunteers through the police department and graffiti hotline–and program this into your cell phone, as well as your service provider companies.
3. Know your broker preview and caravan in your area.
4. Have a REO website
5. Have the ability to drive by and inspect each listing every single week and conduct a weekly open house. Either you or one of your team members must be present.
6. Have “Rambo Gear.” Sturdy shoes, digital camera, light bulbs (never leave empty light sockets), flash light, garden gloves, towel, tape measure etc.
7. Know how to get a property FHA approved.
8. Winterize-properly. If you are located in an area that requires your home to be winterized, know that you must turn faucets to slowest drip,….drip….drip and leaving them dripping, with drains open. Make sure the furnace pilot is on, set thermostat to lowest temperature or 55 degrees. Be sure all windows and exterior doors are closed tight, to limit drafts. Open all cabinet doors under sinks for circulation.
9. Have your lead generation and commission sharing agreements spelled out with your team members. Have a buyer’s agent.
10. Get organized. Have open house folders, guest book for sign in, maps of the city, open house signs, and opinion sheet for visiting agents.
11. Know the difference between a pre qualification and pre approval and learn how to identify legitimate loan pre approvals.
12. Know your market statistics and inventory.
13. Know the minimum documentation required with a purchase offer submission and always guarantee that it is complete when presenting to the REO Asset Firm. Have good access to e mail-you will have to respond within 24 hours of receiving the assignment.
14. Know e-signing technology (available through some asset management companies).
15. Lastly, weekly check all the above systems to make sure they are operational. Always document condition of home in sign-in sheet.
Provided your license is in good standing and once you have put all these elements together you are ready to apply with the major institutional lenders and mortgage banks across the country. Some require that you include your resume.
What you can expect in your listing package when you receive an assignment?
In your listing package you can expect to have the following elements:
Address, listing contract, initial condition report form, marketing plan check list, valuation report, preliminary title report, utility authorization, no trespassing signs instructions, home warranty confirmation.
Lastly, to find out about lenders with assets that need managing go to http://mlimplode.com/ this actually will actually point you in the direction of the lenders needing the most help with their Bank REO’s.
For more information, call 714 847-3454 x 307.