What does an REO broker do?
When properties go through foreclosure and are seized by the bank, that’s when REO brokers come in.
Unlike regular sellers, banks are more demanding clients. Therefore, as the bank’s intermediaries, REO brokers are tasked with making sure everything goes as smoothly as possible.
That means:
- Overseeing inspections, maintenance, and repairs
Often times banks demand initial inspections within 24 hours of assignment. The REO broker negotiates with the city orutility company to make this possible, andcalculates the cost of hiring contractors, who bid for the job.
- Keeping costs to a minimum
REO brokers need to pay for contractors, processing fees, and other expenses. This can be quite tricky because some banks don’t give reimbursements on time or don’t pay at all. The broker has to present to the bank invoices and proof that work has been done.
- Evicting overstaying occupants
When former owners continue to live in a foreclosed property, REO brokers are expected to swoop in to offer them money and time to move out. When offering “cash for keys,” the broker pays twice the assessed rental rate of the property. Occupants are often required to move out within 30 days.
Evictions occur when no agreement has been made. REO brokers then have to oversee everything and coordinate with the sheriff and clean-out crew.
- Listing assigned property
Most brokers have to list assigned property and send the MLS sheet back within 24 hours. They are also required to create marketing tools like write-ups, pictures, signs, flyers—the works.
- Keeping the bank abreast of all developments
Once offers have been made, the REO broker oversees the bidding war and sends all the information to the bank.The contract phase is very important to all sellers. Banks demand updates on any issues regarding the sale of the property.
- Skipping the closing
Not all REO brokers are required during closing. By the time an REO home is purchased, the broker would have sent all invoices to the bank.
For information on foreclosed properties and other homes, give Nordine Realtors a call at 310-379-8800.
