REO and listing agents

Foreclosures, Short Sales, Tax Foreclosures
1

Folks,
I have been chasing REOs.
Here is what i see.
Most often, the properties go in contract after just 2
days on the MLS.
My suspicion is that these are typically “pocket listings”
where the listing agent has already passed the word
around and have a client that has agreed upon a price.
They just list on the MLS for the heck of it and take it
out in a day.

Have folks observed this behaviour?
Now, have folks been able to get onto the private calling
lists of these listing agent?
Moreover, the agents say that they get close to the listing
price.
How do you compensate such listing agents, since it might
be against their listing agreement ethics with the bank.

Now, who would want to purchase retail for investment?
I don’t wish to touch a prop unless i get it anywhere
from 15-20% discount.

-Krish

2

if these agents get lots of reo listings they probably have buyers who know that. have a a relationship with one of these realtor. in many cases that means a written agreement with them to work for you, they keep their eye out for new properties. in the written agreement decide on compensation to the agent, they agree, everyone is happy.

3

According to MLS guidelines, all listings must be entered into the system. That may explain why they are on for such a short period of time.

Another reason may be that you are in a hot market where homes sale w/in a couple of days.

4

Krish 1, you have to learn how to get hold of these properties before they become REO’s and actually go into MLS…if it is a great investment the realtors would buy it for themselves That house passes through many hands before it is put into MLS and if it hits MLS the listing agent is not playing games… I would suggest befriended someone at a local bank…they get a list before it hits the market…or attend the auctions at the court house.Title company’s have a list of foreclosures too. … Where the market is really good if the home actually hits the MLS and it is a good deal I often see bidding wars, where the home will get multiple offers and sale much higher than list price. There is no extra money exchanged to listing agents-non that I know…if you want a good bargin on a good home in a place where the market is booming…you will not get 15 to 20% below you may get that on a short sale…but not REO fresh on the market.

5

I have tried contacting ABN AMRO Mortgage (out of Jacksonville) before their REO’s are listed on MLS and they indicated that we have to have permission from the owner (previous) or be a mortgage broker for them to reveal information or consider selling. Does anyone know if this is true for all banks?

I have my eye on an ugly duckling that has potential :wink: