New REO Property - Initial Services
Lender provides information on new REO property:
- Property Assignment & Real Estate Agent Selection - Bankers
Asset Management assigns property to agent to obtain occupancy status.
- Drive by BPO - Agent drives by property and from an exterior
evaluation prepares opinion of property's market value. (A drive-by BPO is a
frequently used form of assessment. It is typically done as the first
assessment of the property's value. The report contains basic property information
as well as a few comparables in the area. This is less expensive than doing
a full appraisal or an interior BPO and an agent can provide this information
even if the property is occupied.)
- Occupancy Status - Bankers Asset Management informs client of
occupancy status within a 24-hour period.
For occupied properties:
- Cash For Keys - Bankers Asset Management coordinates with agent and
occupant to offer "Cash for Keys". (Amount of cash for keys has client's
prior approval.)
- Evictions - Bankers Asset Management coordinates with client,
attorney and agent to facilitate timely eviction of occupants. At client's
request we can deal directly with attorney, thereby saving client time.
- Eviction Status - During the eviction process, agent is instructed
to drive property every week to monitor for vacancy.
For vacant properties - Agent is instructed to proceed with the following:
(or once property is vacant)
- Secure Property - Re-key property (front and back doors secure)
- Utilities - Turn utilities on in agent's name (if applicable)
- Initial Clean - Obtain trash-out, initial yard service & maintenance
program, cleaning and pool bids (if applicable)
- Valuation - Submit Broker Price Opinion with pictures and bids
within 10 days
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Property Valuations (BPO, Appraisals)
- Drive by Broker Price Opinion (BPO) - Real estate agent drives by
property and from an exterior evaluation prepares opinion of property's
market value.
- Interior Broker Price Opinion (BPO) - Real estate agent provides
estimate on home's value when property is vacant or accessible and serves as
a more detailed and accurate valuation of listing price. With interior property
access the agent can assess a more complete analysis of market value.
- Appraisals - Order appraisal or second interior BPO. Agent supplies
report within 10 days (or within client guidelines).
- Reports - Order reports as necessary (including foundation report,
roof inspection, termite inspection etc).
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Maintenance & Repair
- Emergency Repairs - Coordinate emergency repairs with agent when
needed.
- Rental Properties - Bankers Asset Management manages rent collection
in cooperation with listing agent, if property is tenant occupied and a decision
is made to leave the tenant in place. Forward rental payments to client minus
applicable management fee.
- Initial Clean Up - Obtain trash-out, initial yard service, and
cleaning services.
- Ongoing Maintenance - Weekly yard maintenance, property preservation,
basic winterization, pool maintenance, termite treatments (each dependant on
client preferences and property needs).
- Rehab Bids - Solicit bids from qualified contractors for work needed
on property.
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Listing and Marketing the REO Property for Sale
- Marketing Report - Bankers Asset Management reviews Broker Price
Opinion and Appraisal and completes a Marketing Report suggesting a list
price and market strategy.
- List Price Approval - Client confirms list price within 5 working
days or designates authority to us to set the list price. Allowing Bankers
Asset Management to set the listing price greatly shortens marketing time.
In our normal procedures list price is set only based on the appraisal and the
agent's BPO (or two BPOS) being within a 10% variance of each other. If
prices are out of variance, Bankers Asset Management works with all parties
to bring values within variance prior to listing the property.
- Property Listed for Sale - Coordinate any rehab projects on property
and place property on the market with designated listing agent.
- Title Commitment - At the time property is listed Bankers Asset
Management opens title with a designated Title Company (at Client request),
orders title commitment and advises client of any back due taxes or liens
against the property.
- Monitoring and Reporting - Constant monitoring with agent regarding
sale of property. Monthly status reports to client.
- Price Reductions or Listing Extensions - Coordinate listing
extensions and price reductions.
- Contract Negotiations - Negotiate all offers on client's behalf
(within predetermined guidelines & stipulation "subject to corporate approval").
Receive and review contract, forward to client with a "Contract Cover Sheet"
summary, all negotiation sheets, countering sheets, seller's net sheet, buyer
pre-approval letter/proof of funds and copy of earnest money check. Client
promptly signs and returns offer.
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Monthly Status Reports
All of our clients receive monthly status reports of all REO properties under
our expert management. This is in addition to ongoing advisement and monitoring
of current issues. This is one way that we keep you updated on your holdings and
their progress.
Monthly Status Reports include the updates listed below. Reports are also
customized based on our clients needs and preferences.
- New Acquisitions
- Occupancy Report
- Redemption Report
- Evictions
- Listed Properties
- Listed Properties over 30 Days
- Listed Properties over 60 Days
- Listed Properties over 90 Days
- Sales Pending Report
- Closed & Funded Report
- Property Rehab Report
- Total Inventory Report
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Closing the Deal - Property Sells
- Contract Negotiations - Bankers Asset Management negotiates all
offers on client's behalf (within predetermined guidelines and stipulation
"subject to corporate approval"). Receive and review contract, forward to
client with a "Contract Cover Sheet" summary, and negotiation sheets. Client
promptly signs and returns offer.
- Preparing for Closing - Offer is accepted. Bankers Asset Management
monitors all details and activities necessary for closing, including:
inspections, contingencies, loan approvals, repairs, and disbursement
instructions with title/escrow companies, etc.
- Real Estate Closing Papers - Bankers Asset Management reviews all
escrow papers, fees, commissions and HUD & closing statements, then forwards to
client for approval and signature.
- Funding - Bankers Asset Management monitors all closings to expedite
funding to lender.
- Accounts Payable - Collect & disburse payments to agents and vendors.
Submit invoices to client for reimbursement on a weekly basis. Upon closing,
immediately obtain all final invoices from the Broker for final close-out of
file.
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