Texas REO broker shares insights on managing bank-owned homes efficiently

A Texas real estate-owned (REO) broker who previously worked as a servicer shared insights on managing REO assignments, emphasizing the importance of teamwork and timely actions, HousingWire reported.

From the servicer side, the broker noted that the most challenging files were often those with uncertain occupancy and unsecured properties, rather than damaged ones. Brokers trusted by servicers promptly confirm occupancy, secure properties, document conditions with photos, and communicate clearly about the situation.

The broker highlighted that the first deliverables in REO assignments come due within 24 to 72 hours, with no warm-up period. A pre-marketing review identifies necessary preservation items proactively rather than waiting for instructions.

Cash for keys agreements were described as the fastest, cheapest, and most humane way to handle occupied properties, averaging ten to fifteen agreements per month. These agreements require follow-up and creative solutions tailored to families' needs.

Trust between brokers and servicers is crucial and is built file by file. This trust allows flexibility in decision-making, leading to avoided evictions, shorter timelines, and better property conditions.

The broker stressed the importance of pricing based on evidence such as photographs, repair scopes, and listing history to enable asset managers to defend prices internally.