REO is a termed that is used to refer to real estate owned and refers to the properties that are foreclosed by a bank. In case the bank does not sell the already foreclosed property at the auction, they will use the services of the reo asset management companies. In most cases, the companies will sell a home at the current market value.
In most cases banks are usually afraid of having reo properties included in their books for a long period of time as unsold homes often add to the risks of the lending institutions. This is why the banks have the goal of putting REO properties on the market fast enough after the end of the foreclosure process. To accomplish this, the qualified real estate professionals are supposed to sell the properties fast and at a good rate.
The companies that offer REO asset management are also responsible for the maintenance and the cleanout of properties that have been foreclosed. Some of their services include disposal of trash, field inspections, landscaping, winterizing, repairs and provision of the monthly inspection reports.
Sale of REO properties
When searching for some qualified real estate professionals the companies that do asset management will try to look and see if there are agents who are listed in their management software. These are the platforms that include the credentials and experience of the agent. These also come with some built in score cards that are used to track the performance of the agent as well as any of their past successes.
There is need to have an agent who is responsive to the asset manager’s needs. This means that they should open communication lines and also adhere to the compliance system of the asset manager. After the assigning of the REO property to an agent, the asset management company is responsible for the overseeing of the sales process.
How to become a reo manager
There are several steps that you will need to go through before becoming a reo asset manager. These include:
- Complete a course in broker training. This kind of course will instruct the agent on determining the price opinion that helps to assess the market value of the property and serve like a market for the potential investors
- Network with the banks as well as lending companies in your area. Ask them to provide you an opportunity to showcase your REO skills that will help you to sell the foreclosed property fast.
- Set and also maintain a low fee. You can do that researching fees of the local asset management companies that will ensure that you get a competitive advantage over the other REO agents.
- Use different listing service programs that will show the available properties and the homes that are already foreclosed.
Should you buy the traditional versus REO?
One of the key differences between the traditional and the REO property is that negotiating the final price of the foreclosed property will take longer and the process consist of several steps.