I’m not going to go on a rant like a jilted lover.
However, I will go on a rant to defend those whom I understand.
When we had been working with some of the larger banks, with regard to selling the REO assets, Foreclosures, we had a lot of fun.
We met some of the most wonderful people that were working in the AM – Asset Manager, capacity with some of the banks with the most “red paper”.
BTW – let me relay some intel. REO – Real Estate Owned, real estate listings that are of the Foreclosure Variety. REO was a line item on a Bank’s talley sheet, back in the day, they still use that category and refer to their “Foreclosures’ as being in the “REO Category”.
“Red Paper” – REO listing shown as being bank owned.
Foreclosure – Any real estate listings that has reverted, via a court action in most cases, back to being owned by the lender on record. If the lender is a hedge fund, private bank or someone other than a “Real” live bank, the same rule applies. The Property is now considered a “Foreclosure”.
Today, while viewing real estate listings, we viewed a home path property. A Fannie Mae Foreclosure. I called the listing agent, who has had this home in three escrows with buyers, all represented by other agents, during the past 90 days.
They were on their way to close escrow on the home, they wanted to buy it and Home Path chose their offers over others that were submitted, so it really wasn’t the agent who chose. It was the “owner of the REO” that chose.
If a REO property falls out of escrow, at the 90 day mark, the property is given to another agent to handle.
What kind of sense does that make? The listing agent is the one that is familiar with all of the “issues” with the property. They know the reasons why the home fell out of escrow and they are going to be the best to remain in front of the learning curve, because they know the intel already.
There is nothing to learn, there is nothing they have to “adjust to”, they just spent the last 90 days learning it, they just spent the last 90 days spending money on it and were successful in the sales of the Bank Owned Foreclosure three different times.
Is it their fault that the “Buyers” had issues with financing? Had issues with losing their job? Had issues not keeping disease free? (I was meaning to sound harsh and ridiculous)
No it is not. Just another step in the wrong direction. If the listing agent is performing as per the banks “level of expectation”, then the Bank should keep that REO agent with the listing they have been working hard to sell.
What’s next, Banks selling the REO assets themselves, buy starting a new department within their walls??? That would sound about right 🙂