How does an agent sell (List?) a bank owned property?
It depends on where the foreclosing bank is located. If the foreclosing bank is a local bank, the bank may try to sell it itself to save commission fees.
To get this listing the agent should speak to someone in the REO department of the local bank. You could offer your services: "Hi, Mr. Bank President. I'm so and so with xyz real estate. It is my understanding that you have recently foreclosed on property located at 123 Green St and I may have someone interested in purchasing it. Would you give me the courtesy of listing this property for 30 (60, 90) days at x% commission? I can provide you with x,y,z services (trash out of the property for a small fee-the bank will have to pay to have this done, anyway)" You should know which advertising your company provides, i.e., MLS, other websites, newspapers, television, radio ads, etc. It wouldn't hurt to have a 'resume' available to show how many houses in the area you have sold, average days on the market (a cma would be helpful. This house may have more owed against it than it could possible sell for). Be a salesman selling yourself and your company. You want to present this opportunity as one that would be MORE BENEFICIAL to the bank than to you.
If the foreclosing bank is one that is located another state (Countrywide, Wells Fargo, Citibank, etc), these banks send their REO's to an Asset Management Company that will select an agency (that has PREREGISTERED with it) to do a BPO (broker price opinion-which is basically a CMA). The company that does the BPO is usually the one chosen to list the property.
To register with the Asset Management Companies, you can find a list by doing a search and going to each one's website. Some have links for agents (or brokers) to register their services as BPO's. Some one's that I am registered with are: www.pasreo.com, www.creoco.com, www.iasreo.com. And some government ones (VA, FHA, etc).
If you are an investor wanting to purchase directly from the bank (as I suspect the previous writer is) he is on the right track. Speak to someone in your local bank who is in charge of the REO's. Let them know you have made similar purchases from other banks (even it's it's only slightly true) and would be interested in assisting them with a quick sale. Again, make it seem like YOU are HELPING them by getting this headache out of their hands.
You WILL NOT BE ABLE to purchase any government foreclosed homes directly through the bank!!!!! You know the governement RED TAPE, they have a process so that no one can claim unfair advantage. The ONLY WAY to purchase these properties without waiting for the process is to purchase them at the courthouse steps! (auction). The only way to list them is to go to the government websites and register your services. A good link to these is www.hud.gov, it has a link to VA, FHA, Federal Marshall, IRS, etc.
If the foreclosures have gone through the whole process (initial offering, bpo, listing) there is one final opportunity to purchase these properties. They will go to a FINAL auction with a national company (Williams and Williams, Hudson Marshall, Cates Auction Service, etc). These are final auctions and MOST are sold. (actually, I've never known of a property that HAS NOT sold at any of these auctions. This is a LAST resort of the foreclosing entity and they usually take what they can get and write off the rest as a bad debt)
One last way (very slight chance) to get a listing is to attend the courthouse steps auction and give your card to the trustee conducting the service. SOMETIMES they will pass your card along to someone in charge who will call you for your services. Most of the time the trustee just 'DX's' the card (for those of you NOT in the military, DX=Direct Exchange, or trash)
I hope this has helped. There are other Asset Management Companies that I have not listed. Some specialize in certain area's of the US, which is why I don't know them. I'm in the midwest. If you do a search "asset management company" will bring up a whole bunch of information.
are you trying to sell the property owned by the bank for the bank or for the person living in it? Is it foreclosed? If you are working with the bank, then just post a sign and advertise the property for sale in the mls and wherever else you can.
if you are working with the buyer, you can look up bank owned homes through the mls and its the same process as writing a contract for a regular home. Except they specify the lender and whatever else they want to.
If you are a client working with an agent trying to find forclosed homes, try HUD and VA foreclosures. The agent has access to these via mls or the actual hud websites. HUD homes are actually have a different way of accessing them, not with SUPRA. Ask your broker for the key if necessary. Several banks have their available foreclosures in their website, you just have to find them. They are also listed on the county courthouse? I believe its on tuesdays? Please correct me if I am wrong. Hope this helps.
I'm watching this question because I am trying to get into this market. From my research and experience, it seems like you have to know someone in the REO department and grease them or work with the foreclosure servicing companies. For example, here is one in my area: www.reonationwide.com
I once asked an agent who does REO listings how he gets his listings and he feed me some BS about needing to be in the business a few years and proving yourself.
It would be interesting if more people shared their experience on this.
Regards
