Good day everyone – I’m Connor MacIvor and, yes you have it right, we are at our Foreclosure update show for the SCV and other Southern California Cities. I’ll get into the dirty dozen active foreclosures/distressed real estate listings which are for sale as of today’s real estate and foreclosure show. I will then talk about some larger “southern California” housing numbers as they relate to distressed properties.
Have you ever wondered why Foreclosure Agents take so long to respond to offers? Maybe your offer? – I’ll explain the inner working of that mechanism as it relates to Foreclosure Realtors later in today’s show(below).
During the past several months – we have seen the active Distressed inventory hovering around 12-20 active units for sale in the Santa Clarita Cities. These include Foreclosures/Real Estate Owned/Auctions. Today I’m monitoring our foreclosure Channel and see 12 of those properties. See the Foreclosures/Bank Owned listings in Santa Clarita and So. Cal!
Of the 12 – here is the breakdown 12 are Single Family Homes are are located in Saugus, Canyon Country, Valencia, Castaic, and Acton.
In Acton – there is one modular home that is making the list which is is appearing as a Single Family home – but it is manufactured – watch out for listings which are not accurate!
If you want to talk Foreclosure / Bank Owned homes / Short sales and pre foreclosures – hit me up. I’m easy to find online on the social media channels and you can of course text or call me. Number is at the top of this page.
Why does it take so long for the REO agent to respond?
If you have ever written an offer via your realtor on a foreclosure or bank owned property, you may have wondered why it takes them so long to let your agent know if your offer was accepted or not.
That is because there are too many chief’s and not enough Indians… Everyone wants to be a boss in life and in the Foreclosure/REO game, it is no different.
The pecking order goes from the real estate agent – to the asset manager (to) (bank or investors) (to) Management and back down the opposite way.
The agent, who the bank is employing to sell their foreclosure and bank owned inventory, receives the offer. There was a time when agents who were representing banks were “round filing”(throwing away) offers received, so they could bring their own buyer to the table. The banks have gotten smart to that happening and now investigate agents who they hire to represent them. (as an aside – they do this by having their employees call to see what they can “get out of” the agent they hired to sell their asset)
There is a pecking order. When we were working for Citi Bank – some of the listings had to be approved at various levels and by investment groups. In some cases, there was more than one person who had to bless the deal. As you can expect, it’s hard sometimes to get a 100% consensus.
Then the offer makes it’s way up the chain of command. The Next Stop will be the Asset Manager. They are going to have questions for their real estate agents. They want to make sure that the “offer entered” is going to go the distance. While no one can assure that 100% – the AM’s(asset managers), enjoy being reassured.
If the offer deviates from the listing price of the bank owned asset being sold, and if the AM chooses to take it, it needs to have management approval. That takes more time. If you Submitted your offer on that foreclosure the week before Christmas – forget about it! – You will be responded to in the new year!
All this while, other offers are being received by the listing agent and entered into the computer system and the AM is looking at those as well.
While it works, the bottom line for the banks is net(ing) the most money for each asset their agents are selling. If your offer gives them more than the other offers and if your financing is better – you are going to get the property and you will all day long 🙂
I hope this helps clarify – our experience at the beginning of the last foreclosure cycle was to hit up the foreclosure listing agent directly. That changed quickly when the banks started to make it harder for their agent to represent buyers and submit offers than “agents” who are on the buyer’s side 100%. This applies to the resale market, in a way. It’s nice to have your own representative and that’s free for you as a real estate buyer!
BTW – when we are searching for homes and real estate for our clients – we want to make our clients are seeing the REO/Foreclosure and Pre Foreclosure inventory. We search for types of real estate such as these in our daily routine. It’s part of our home search process for all of our real estate clients.