Having an REO on its books is not good for the business of a financial institution. When a lender is unable to find a buyer for the property during the foreclosure proceedings, the lender wants the property to enter the market for sale as quickly as possible. As long as it stays on the lender’s books, the lender has to spend money on its regular cleaning and maintenance. However, lenders are not in the business of selling properties.
This is the reason why they find REO asset managers who work with the best agents to sell such properties. Lenders have such properties in different parts of the state or country. Therefore, instead of working with multiple REO asset managers, they work with REO asset management companies offering services nationwide.
An REO asset management company has its own team of agents working across the country or it finds quality agents to work with. These companies use dedicated platforms designed for REO asset managers and agents.
Agents listed with these platforms share their experience and credentials. Independent REO asset managers and REO asset management companies can check the experience and credentials of an agent before hiring for the job. These platforms track the performance of an agent. You can learn about the success rate of the agent you are considering to hire.
In addition to being a master in selling properties quickly, the agent should also be responsive to the changing needs of an REO asset manager. REO asset management is not all about managing and selling REO properties. Even when you are using mortgage document management software to automate and streamline documentation, you have a lot to do.
You need to know how well an agent works especially when there are deadlines. The agent should be able to offer price opinions, use relevant comparisons, should be detail-oriented, capable of paying attention to all the important aspects of the sale. Buyers believe that an REO asset is a cheaper investment option which is true in many cases. However, the agent should be able to make a case why a particular property is expensive.
As an REO asset manager, you want to sell the property quickly. You also want to sell it at a good price. You can sell quickly when you find a proactive agent who uses different marketing channels. Most REO properties have issues like code violations and multiple liens. The agent must be knowledgeable to keep the manager informed of such issues.