Listed on bank REO site, listing agent will not present offer

Melita Costoso · 2015-12-30T23:06:05-08:00

I found a listing on a bank REO website a couple of months ago on a property we could afford to pay cash for. it is NOT listed on the MLS. Our agent took us to view the property the day after it was listed on the website. There was not a door handle to get inside. Viewing through the windows was enough. We immediately signed a full cash offer no contingencies. When my agent called the listing agent he was rude, curt and hung up quickly. After calling him again he said it was not ready to take offers, the property is going to auction.com. My agent submitted an offer anyway... no response. A few days later the listing agent called and said send the offer over. We did. Then he says 'sorry we jumped the gun' we're not ready yet. Have to evict someone. (There was NO ONE living in the property.) Every time my agent calls, he says 'still not ready.' I have called the asset management department of the mega bank. They are limited in what they can do from a call center. Anyone else have this problem or advice? I really really want this place.

Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

@Phillip Dwyer Please read ALL the comments posted. As I said, I AM a licensed agent in the state of Colorado. My mother was a broker with her own agency. I'm more familiar with real estate than most agents.

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Phillip Dwyer

Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes

10y

@Melita Costoso I have read through the entire thread. I'm trying to help you get something done by explaining the proper channels to go through first. Each state is different, so that's why I pointed this out. Also, having a license doesn't automatically make a person knowledgable, especially if it's a license in a different state.

Good luck with your purchase.

2 Reply

Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

@Philip DwyerI wouldnt have posted another response but quite honestly I am finding your comments insulting and repetitive to others who already commented.it does not appear you read beyond my first post. To feel the need to say the laws vary by state to a license agent of ANY state is not only ludicrous it's pompous of you as a licensed agent. A smart agent would have realized @Bill Gulley had nailed the response in his first post. From just the few posts you represent yourself as one of those agents who thinks they are the only ones that know anything about RE and it's klingon to everyone else. To respond how you did after Bill appears to be a need to be noticed. That is not the personality of someone I choose to be in contact with or do business within. Please refrain from any further posts. Thank you

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Greg H.Pro Member

Moderator

Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

10y

@Melita Costoso

I think you have misinterpreted where Phillip is coming from. He is an agent in Vegas and might be able to provide valuable on the ground assistance. A few thoughts :

-If the listing agreement has not commenced or the agent is instructed to do so, the property would not or should not be in MLS and the agent would be in no way obligated to cooperate with your agent or any buyer/agent. A simple clarification of status from the agent would be the most professional way to handle it but the bank is his client

-I see more and more Auction.com properties listed on the MLS at the "teaser" price meaning that the bank will most likely never sell the property at that price. If this is the case, you would have to wait until it becomes live on Auction.com. You may want to set up alerts on their site so you don't miss it

-Banks and Asset Management companies are notoriously poor at one knowing ther inventory and 2 what the correct price or status may be. Just because it is listed as active on their site it doesn't mean it actually is. As mentioned earlier, there could be title issues, occupancy issues(just because it is now vacant it may have taken time to run through the system) or a multitude of other issues

-And there is the chance you are correct and he is hoarding the listing. I have done a couple of flips in Vegas and agents there are known for trying to sell properties in house

1 Reply

Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

@Greg H I have a really good idea where he is coming from and that's not reading, which as agent us a crucial part of his job. Half done and condescending is of NO value to me.

As I said, it's not in the MLS despite being on the banks website. They actually pulled it from their site for about 3 days, then it went back up. Listing it on the MLS is the reponsibility of the listing agent, we all know that. Is it another error of his is the question.

I have spoke to over 20 people at the bank who all agree, if it's on their site it's available. Period.

It never made it to auction. Auction.com was given the information but never listed it on it's site. The bank took it from them twice before it could be auctioned.

The few people at the bank who knew what they were looking at and for did not see any issues that would prevent the agent from taking offers or the bank accepting them.

Two people at the bank were so mad about this they put me on hold and contacted the listing agents broker. 5 minutes Later my agent had a call from him. They also sent emails to several higher ups at asset management. Again, that's when he was cooperative. He's back to ZERO contact and ZERO reponse to emails and phone calls.

It's Vegas. It's slimy. Gotta have some chutzpah and integrity to not get walked over and/or end up in jail.

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Wayne Brooks

Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes

10y

@Melita Costoso Feel free to believe, or not believe, whoever you choose. But, as a licensed agent, you should know that a "mortgage broker" wouldn't have any more clue than we do whether a property on a bank REO site is actually available "for sale", or not. Also, customer service reps won't have knowledge of issues an asset manager may be having with a specific property...their documentation may show it as still occupied, there may have been an issue with the foreclosure process, a different title issue, etc, etc. Customer service reps always speak from, as many of us do, ".......as far as I know....".

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Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

@Wayne Brooks. mortgage broker?? Hardly. Try asset management department. And I was talking to the asset management department customer service. Are the majority of people on this site really this green?

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David C.

Investor · Hillsboro, OR · Member since 2014 · 77 posts · 35 votes

10y

Seems like you shouldn't insult the people who are taking the time to try and help.

1 Reply

Greg H.Pro Member

Moderator

Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

10y

Originally posted by @Melita Costoso:

@Wayne Brooks. mortgage broker?? Hardly. Try asset management department. And I was talking to the asset management department customer service. Are the majority of people on this site really this green?

Have you had a lot of success in life insulting those who take the time to help you ? It is very clear as to why the seller's agent is not being cooperative

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

10y

@Melita Costoso thought I would chim in here.. I too have been frustrated with the OREO process.. as the banks through their asset managers are and have been pretty discombobulated for 10 years now.

YOu think you know whats going on but you don't if you follow this thread.. Just because a property is on a banks website does not mean its on MLS and there is a valid listing agreement And you should know this.. you could have a valid listing agreement with instructions to not put it on MLS or NOT accept offers to until a certain Date etc etc.

You have no way of knowing any of this.. and your certainly not going to get anywhere calling the banks or asset managers they deal with principals these folks get your kinds of calls all day long...

I think you either watch Auction.com for when it comes up and place your bid through their system or you have your local agent flag the property so that you guys are alerted when that address goes live on the MLS system.. then make your offer...

@Wayne Brooks I have been doing RE for 41 years in 3 states owned multiple brokerages etc etc and I can tell you Wayne is one of the sharpest brokers I have ever had the pleasure to follow on BP.... Bill Gully is very sharp on the Macro level.. But his advice to file a lis penance in a case like this is totally off base you could get in a heap of trouble doing something like this on a property you don't own or have a financial interest in other than your pissed that you can't get your offer looked at or accepted.. I am thinking Bill did not understand that this property was not on the MLS and was just on a bank website.

And again as you know as an agent you can list properties on MLS but write in the listings not to accept any offers until such and such day... etc etc.

Phew this was some thread...

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Wayne Brooks

Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes

10y

Originally posted by @Melita Costoso:

@Wayne Brooks According to their customer service and mortgage brokers, if it's on their site, it's for sale. Also found out this bank has 20 more units within the complex in foreclosure.

@Phillip Dwyer The listing agent has not answered. I even tried to call.

Melita, you're the one who said "...and mortgage brokers, if it's on their site, it's for sale". Yeah I agree, I thought that was a pretty green/ignorant statement too.

1 Reply

Joel OwensBusiness Member

Moderator

Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

10y

Everyone needs to ramp it down some please.

First what kind of bank is this? Local, regional, national?? The bank might not even be the point of contact. Sometimes depending on how large the bank is they outsource the servicing to someone else. The servicing company will follow the pooling and servicing guidelines for the loan and asset. If this is a local or regional bank there is generally better luck than a national one. The mortgage brokers are in a different department and are clueless on what goes on fully in an REO department. They might not even be in the same state sometimes with larger banks much less the same building.

It was mentioned the bank owns many other properties in the development. Has the bank sold and closed any of those recently? If none of those closed maybe there is an issue with the POA. I have seen banks that own fractured projects have to go through a lengthy process to get to where they can sell a property. If it's not on the MLS yet but on their website it could be in the pre-list stage. The fact that is has been pulled many times from Auction usually is a sign there is a legal issue with the property that needs clearing up.

I used to drive around and see HUD homes not on their site but had a notice in the window for months. They couldn't sell the property yet because of unclear title, insurance issues, etc.

Asset managers at most places get a bonus based on cleared files off of the desk and scramble for end of the year closings as banks are clearing the books from the defaulted properties.

Beginning of the year the AM's are not as motivated. Some contacts take off from December 24th to January 4th for the holidays. The bank could decide not to list right now at a slow time of the year and also if the market is moving upward they could be sitting on the property wanting a higher price. In an upward moving market time tends to benefit the bank on selling price.

I have seen lenders in first position do that on short sales before. Some of the larger banks sell hundreds to thousands of properties a year. A purchaser isn't going to pull one over on a bank unless sometimes they get lucky and get a newbie asset manager being trained up. Banks are fickle with each property. I have seen some asset managers go with the first offer from the listing REO brokers buyer and I have also seen them hold out multiple times for highest and best to keep driving the price up.

Asset managers like cash but if the spread between cash and a financed offer is larger the asset manager might still take a chance on the buyer that needs a loan. If the gap is much smaller they tend to go with the all cash offer. Haven't looked at REO for SFR in a really long time but they used to take 90% of what the BPO value came in at. Sometimes they would go to 85%. If it was lower than that after 30 to 45 days of being marketed for sale they would do a systematic price reduction on the property.

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Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

Sorry I have not been able to reply to everyone. We've had a bit of a family emergency that forced a trip to Colorado the last few days. That being said, we have to skip this condo for the moment and focus our energies elsewhere. So if anyone has a 1+ bedroom ANYTHING that's not listed, under $65k (cash deal), for sale in Mesa County Colorado, particularly the Grand Junction area, please contact me.

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Brent Coombs

Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes

10y

@Jay Hinrichs, ooooh; we must all avoid anyone who is "discombobulated"!

I will just settle for not having to say that out loud. Cheers...

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Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

Quick update...

After hours on the phone with the bank who had no info, they did, however, tell me who the 3rd party asset manager is. I tried the agent after and FINALLY spoke to him, for all of 10 seconds. He put me on hold only to have his assistant pick up. Very classy of him. Anywho, she tells me they do not have a listing agreement for the property - despite the banks listing him as the contact. #reosareapain #stillinnomansland #alltalkedoutonthisproperty #mommawantsitthough

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Kevin FoxPro Member

Real Estate Agent · San Diego, CA · Member since 2014 · 1k+ posts · 635 votes

10y

Originally posted by @Leigh C:

Call the bank, ask for the REO department....ask for the asset manager for that particular property using the address.

Ask that person whats the deal as there appears to be an issue with the listing agent trying to pocket list the home.

Nailed it.

This would be my advice as well.

If there is in fact a hold up, you will at least be put at ease knowing that the deal isn't going anywhere for the time being. If it turns out that the agent is just a scumbag and is gaming the deal to maximize the benefit to him personally, you will help both yourself and the bank by calling attention to the problem.

Edit: I very clearly did not read through all of the comments, as it sounds like you've been trying to do this. If your efforts over the phone are proving to not really be getting you anywhere, ask where you could go to speak with someone about the matter in person. Can't put you on hold when you're face to face and people tend to feel much more obligated to assist you rather than turn you away saying there is nothing they can do.

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Melita Costoso

OP

Las Vegas, NV · Member since 2015 · 23 posts · 4 votes

10y

Bloody good advice! @Kevin Fox I tried to go into a branch here in Las Vegas. Was given a number and really got nowhere. Might have to try that again though. This has gone by the wayside lately. We have been completely absorbed with another deal, out of state for my boyfriends brother.

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Robert AdamsBusiness Member

Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes

10y

REO's in Vegas can be a nightmare to deal with depending on who is representing them. Other REO agents are a pleasure to deal with. It really just depends who is listing it. It has been my experience that you either play their game and start jumping through their hoops or just move on to other listings. You can spend a lot of time arguing and calling 20 different people but honestly nothing is going to change. If the listing agent/Broker are misrepresenting the seller/bank you can raise awareness of the problem or even file a complaint or pursue them. However, this will not likely get you the property in the long run. So my advice is either follow the property and be patient and jump through their hoops or move on to other listings that don't have this issue. REO's make up less than 10% of our inventory so there are plenty of other listings to go after that don't have this headache.

As others have said there may be issues you are unaware of as to why they are not ready to sell it yet.

Secondly, I would like to mention @Philip Dwyer was simply trying to help you by recommending you have your agents Broker contact the listing broker. Typically when there is a problem with a deal this is the course of action. I honestly do not think talking to the listing broker will change anything but it would be worth a try. I know Phil and I can assure you he was not trying to act condescending or like a know it all. He was simply trying to give you another option and I think you got defensive and snapped back at him unnecessarily. I am Licensed in 3 states and the laws/process does vary per state. He was simply trying to tell you that prior to filing a complaint with glvar or the real estate division your agents Broker should contact the listing broker.

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Listed on bank REO site, listing agent will not present offer

Listed on bank REO site, listing agent will not present offer

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