Can I work directly with an REO asset manager or do I need to use a REO listing agent?

[Marcello Di Gerlando]

I've been looking through the REO posts trying to improve my understanding of the REO process. I have a question that I hope someone can clarify for me. Will bank asset managers work directly with an investor to close a sales or does the sale always go through a REO listing agent?

[David Beard]

The big government lenders (the "F"s, Fannie, Freddie, FHA/HUD), plus large banks use agents exclusively. You will not have any luck talking to an asset manager. They have too much volume.

With local banks and credit unions, however, it's a different story. Many of these post their REO properties on their web sites, and you can deal directly with a bank employee. Sometimes they're co-listed with an agent as well. These smaller banks operate differently in many cases. They will often try to improve or partially rehab the property to improve its value, thus they'll price it higher, sometimes they'll finance. I've seen them selling homes in blocks to hedge funds and distressed asset funds. So alot more free-wheeling at the local bank level.