Many real estate agents want to start listing foreclosures for banks but they are unaware of all of the steps required to begin. For example, unless you have a personal contact at a bank, it's virtually impossible to just call an asset management company and start to list REOs for banks.
Before you begin to list REOs for banks, you need to start to process BPOs for them. Most lenders and asset management firms only allow agents that they know and trust to list REOs for banks. Agents gain that trust by doing a fantastic job on the BPO assignments that the bank has given them in the past.
These lenders and asset managers give their BPOs to agents through their REO department. Every major lending institution or management firm has a division of their company responsible for requesting and analyzing initial values of houses about to go into foreclosure.
When a lender's REO department knows a house is going to be foreclosed on, they locate an agent in that city to perform a Broker Price Opinion (BPO) on the house. This BPO provides them an estimated value that the house will sell for in the current housing market and allows the lender to make fiscal decisions about that property.
How to Evaluate a REO Bank List
Once a real estate agent knows how lenders assign REOs and BPOs, the next step is to get on the lender's list of REO agents. This is the step where many agents give up. Getting approved as an REO agent requires 2 very vital steps: 1.) find a quality REO Bank Lists and 2.) Hard work. No one can help you with the hard work, but with a little knowledge, you can evaluate the many available REO Bank lists.
With the declining real estate market, many real estate agents have begun looking into how to list REOs for banks to increase their income. This has caused a number of companies to offer lists of REO departments. These lists usualy cost between $99 and $195 each. A few of these lists are great. Others are worthless. The secret to evaluating these different lists without having to purchase them first:
1.) Is There a Guarantee: The top REO bank lists offer a money back guarantee. If you're not 100% satisfied, they allow you to receive your money back. If the list doesn't offer a guarantee DO NOT BUY IT. Every good list we've found allows buyers at least a 60 day money back guarantee.
2.) How Many Banks are on the List?: When you're considering a REO department list, make certain it has over 90 lenders and asset managers. With a little work, you could find 20-30 banks for free performing an online search. There is no need to pay for such a small list. The best REO bank lists we've found have over 1,000 contacts.
3.) Price: While most REO bank lists cost under $100, we've seen some providers trying to charge over $450 for their lists. Don't pay it. You can get the same information for much cheaper elsewhere.
4.) Quality of the REO Department List: While most lists have the web address and main phone number for the lenders or asset manager, the top lists contain direct phone numbers to the REO department and individual managers in each bank. In addition, the larger lists have individuals' names and personal emails. Those names can prove to be priceless as you start your REO business.
Once you find the right list, you're well on your way to the constant and reliable income being an REO agent can generate.
You can do it. You just need hard work and a top REO bank list!
My team lists over 100 REO properties each year and processes countless BPOs for banks. We share our knowledge to help you start to process BPOs for banks on our blog and review sites. You can learn more about where to find REO Bank Lists here.