THE KNOWLEDGE CENTER WAS DESIGNED TO FAMILIARIZE A REO AGENT WITH CERTAIN TERMS AND PROCEDURES WITHIN THE REO INDUSTRY.
WHAT IS A REO?
REO is an abbreviation for a REAL ESTATE OWNED property-real estate owned property indicates that the property in question has been foreclosed on and has been taken back by the mortgage lender or trustee. When a lender has taken the property back and a buyer cannot be found for the foreclosures sale it is then taken back and sold separately.Often lenders (mortgage holder) hire a real estate agents themselves through there internal REO department or hire asset management companies who hire the realtor's list, market and maintain the properties professionally for them to sell and move these type of homes off the market.
WHAT IS A BPO?
A BPO, or better known as a Broker Price Opinion, is generally used by lenders and mortgage companies to asses the market value properties in situations where they believe the expense and delay of an appraisal is not necessary.Often when completing a BPO a mortgage lender, loss mitigation, or lender will ask you to either do a Drive by BPO which entails of taking a outside photos of the home, this generally doesn't require the agent to get out of the car. In other cases as the home is in the foreclosure process or foreclosed the lender will ask for interior/exterior BPO which is more detail.
WHAT IS A CASH FOR KEYS OFFER?
Cash For Keys -this is a offer to make a tenant or foreclosed occupant to vacate the property on behalf of the bank.
The bank or Lender will offer and authorize a payment in good faith to the tenant to leave the property in broom swept condition without the nasty eviction procedures.
WHAT IS WINTERIZATION?
Most home have these procedures that are needed for properties that are in states that have winter parts of the year. This is work for a good plumbing or contractor to complete. Services are antifreeze, capping the water main, turning off water to the house.
WHAT IS A HAULING COMPANY USED FOR?
Often when a property has been vacated or foreclosed on the tenant or previous homeowner has left trash and belongings inside the home. This is something a hauling company is perfect and a need for, often things may be left in the back yard or paint, hazardous materials appliances, and things they specialize in taking out of properties.
WHAT IS LAWN MAINTENANCE USED FOR?
When listing a property, to have the home sell for the best possible amount and have it look presentable, often a small or large company will handle the ground and lawn maintenance on the property.
WHAT DO BANKS/LENDERS USE CONTRACTORS FOR?
Some listings you take may require some serious work if it has been neglected by the previous homeowner and the bank will have to decide on the repairs and how much they are willing to put back into the property to get it sold.
WHAT DO BANKS/LENDERS USE LOCKSMITH FOR?
Locksmith re-key the locks on properties that you are listing, that way the old owner can't come in vandalizing, create damages, it is also a good idea to secure any broken windows or doors, when the locks have changed, he is one of your most important players on your team.
WHAT IS A OCCUPANCY INSPECTION REPORT?
If the home is already vacant - You will want to do a overall condition report of the home and document your findings to the bank, take photos of the property, let them know if property was left on premises that was valuable etc...
If its not vacant, -
First find out if its tenant or owner occupied , the tenant would be in for a shock if finds out the landlord hasn't paid the mortgage. Document all names of occupied owners or tenants, let them know you are representing the bank and the bank has taken back ownership of the home.