How to Get REO Listings from Banks
Real estate owned properties or REOs are a class of property owned by the bank or any other government agency following a failed sale attempt at a foreclosure auction. When home buyers default on their mortgage payments, foreclosures remain the only option for lenders. However, if the bid is unsuccessful, the property is listed as an REO in the bank’s books. It will then select a real estate agent or broker, who will oversee the sale process, and earn a sizeable amount in commission. With foreclosures taking place increasingly, banks rely on these agents to sell the property on their behalf.
Instructions
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In order to get the REO listings from banks, it is important that you educate yourself about the REO industry. You will need to maintain a strong portfolio, which convinces banks that their property will be sold, and all the necessary requirements will be met. Banks and asset management companies have strict regulations and will only put their faith in those agents who are qualified and competent.
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You will need to register yourself with the bank by providing a signed W-9 form, copy of your license, Insurance policy and other relevant information. Moreover, don’t forget to mention the zip code as listings will be handed out accordingly.
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In order to save some time, list yourself in REO directories or build a Broker Price Opinion (BPO). REO directories are an easy way for banks to trace your existence, which they obtain through the internet or through companies such as REOBroker and AssignREO.
BPO is another route for agents wishing to get REO listings. This is a report which compares other properties of similar dimensions in the area, giving banks a fair idea of the value of their own real estate. Preparing this report allows agents to gain valuable experience and show they have the necessary expertise to assist banks with foreclosure deals. -
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Having gained valuable knowledge, reach out to the banks or the asset management company, handling the REO case. The industry usually relies on word of mouth, and any agent who has a good reputation is likely to be given the task of selling the foreclosed property.
Fill out the application by providing details of your qualifications, licensing and experience. Read the fine prints in the contract and start with the work assigned to you.
