How to Get REO Listings
In order to be able to list real estate owned by banks you must become a Certified REO Listing Agent or an Certified REO specialist, Many would like to know how to get started, by contacting BPO companies. Apparently there is a small amount of agents who get these listings. REO listing brokers have been in the industry for many years working with these types of properties. Banks want to work with top producers who can get the bank owned real estate sold.
In states like Nevada, Chicago and Florida the number of REO's has grown so much that each listing agent can be very busy. Most buyers want a certified REO foreclosure specialist who has a history working with banks and the The National REO Brokers Association is the only national organization dedicated solely to the listing and selling of bank owned properties. It is also where a buyer can find a broker, appraiser or attorney.
As short sales gain ground and more homeowners find themselves underwater, banks will end up with the property deeds to homes with an existing mortgage balance due. Foreclosure auctions are held locally in most city courthouses where buyers can offer a bid for the houses. The fact that the bank did not get the minimum bid from a real estate investor at the court auction it gives REO listing agents a chance to sell the property at a discount.
How do agents get the listings?
Most of these listing agents are contacted by the bank because they have a reputation in the industry of being top performer, it is a close knit community of buyers and sellers, lenders and asset managers. So if you are new to the market it will be harder for you to get the information you need to represent these properties for lenders.
How Agents get REO listings from Broker Price Opinion Companies
Bank owned properties and foreclosure listings are hot right now due to the high commissions that can be made if an agent is representing a buyer. First it is recommended to get registered with asset management companies because banks usually outsource their real estate to asset managers who are responsible for getting these homes sold as soon as possible.
How this works is that the RE brokers are given an order to do a Broker price option by a lender, mortgage company or loss mitigation company. Experienced brokers will either do a Drive By BPO or an Internal BPO.most cases. This method is used to value a property against the current market, this is often times used if a borrower is considering foreclosure or needs help deciding if a short sale is necessary.
NABPOP - The National Association of Broker Price Opinion Professionals
BPOs provide supplementary income for most agents, to get proper training and certification one will need to join an association. Real estate agents must qualify in order to do a BPO also they will have to get them from a BPO company. You must have an active license as a salesperson, broker or appraiser.
You will be required to estimate the price of homes in the local and regional market as well as neighborhood analysis, comps to compare properties. You may notice that this method is similar to a Certified Market Analysis CMA and a residential Real Estate appraisal.
Some of the main reasons for a financial institution to order a BPO are in the case of home equity lines of credit, home equity loans, requests to remove Private Mortgage Insurance, REO Foreclosures, short sales, due diligence for investors or investment bankers.
Becoming a REO Listing agent will take hard work and much public relations, also it is recommended to learn how to market yourself to the right people. Continued educational courses and staying up to date on the current trends in the mortgage industry.
Free List of BPO Companies
You can pay for a list of BPO companies or you can utilize the free ones on DMOZ directory. Most companies that specialize in Business Valuation Services,Financial Services, and Field Services also do BPOs.
Real Estate Valuation Companies:
- clearcapital.com - Clear Capital specializes in Appraisals, Broker Price Opinions, Home Data Index, Property Condition Inspections and Value Reconciliations.
- firstam.com First American Financial Company
Wikipedia offers a free list of asset management firms
System for Getting Listings from Banks
Top REO listing agents have learned some really successful ways to make a living selling REO properties.They will teach you how to get Broker price opinion orders from asset management companies.
Many of them require that you sign up for training for their lead system. So if you want to list Real Estate Owned and complete BPOs for banks it is going to cost you some investment of either your money or your time. You also will get to learn how to market your listings on the internet by setting up your own self-hosted website, promoting your listings with social media and creating your own products.
There is a guy who's name is Jerry Richardson and he does REO course reviews where he discusses the pros and cons of these kits and training courses. He recommends the Secret REO BPO1000 list and the BPO REO Business Kit.
What you will find is that you will have access to an exclusive list of new asset managers and REO companies to connect and network with, now he does say that this list is for seasoned veterans who already know how to do BPO's and get REO listings. If you are looking for a course that will teach you how to do them, it probably would be best for you to attend the NABPOB because they are an association for agents.
Anthony Aires the creator of the course REO Kit provides videos, transcripts, and a ebook with step by step instructions on how to get and sell your listings. This is not an endorsement just informational so you still will need to do your own due diligence and find the right methods for you to getting REO listings from banks.
Where can I find REOs?
In order to get started in this industry it will be best to have several ways to locate bank-owned REO properties.Some of the best ways to find these homes is to look on the web. Also many lending institutions will have real estate listings on their websites. You may find that you need to register or sign up for a membership to have access to these lists.
In order to get started in this industry it will be best to have several ways to locate bank-owned REO properties.Some of the best ways to find these homes is to look on the web. Also many lending institutions will have real estate listings on their websites. You may find that you need to register or sign up for a membership to have access to these lists.
Local banks usually have a department or a person who handles the banks REO inventory. When you are searching for property for real estate investing purposes you may need to contact the loss mitigation department of national mortgage companies. These non-performing loans will be a huge part of how the lender will handle the borrowers who have defaulted.
Investing in real estate in a down ecomomy can have its benefits for instance buying REO properties from banks is a lucrative career. So its best to contact a lender to find out what they require to purchase an REO property.
What are some of the advantages of buying a bank-owned REO?
What are some of the advantages of buying a bank-owned REO?
Most of these homes are free of eviction notices, are without liens or claims against the property such as a second or third mortgage, mechanics liens, taxes or any liens attached by creditors. Getting a discounted price that is less than the market value is what makes these so attractive to investors and listing brokers.
Homebuyers can by pass the court auction as well as the pre-foreclosure process for a less risky and competitive transaction. The best part is getting low down payment , low interest rate and help with the closing costs on each home makes these types of deals a high priority for agents, brokers and appraisers.