2055 with REO. First Time Bid...

[Jason Easter]

I just received my license in 2055 and have solely been completing 1004’s. I was asked to bid on a 2055 for a SFR today with an REO addendum. Can anyone give me any pointers on how to bid it? Cost and time? It normally takes me 3-4 business days to turn around and I charge $400-$425 for the 1004

 

[Elliott]

I could opine and then I could be accused of engaging in a conspiracy to fix prices, so of course I won't, since the Gobermint loves to prosecute price fixing cases, cause they are so easy. (never mind they wouldn't know a monopoly if it hit them in the head).

I've done 2055's with REO's, you do a few and get a feel for the pitfalls. Most clients are reasonable and you can bid appropriately for the work involved. Then there is the lender who basically is setting you up. Good luck.

 

[Overimprovement]

In my market, REO's are routinely much worse on the inside, especially if lower end housing. Hope this isn't your first assignment with this client. If it is, I would personally pass.

 

[Terrel L. Shields]

received my license in 2055

Wow, you got your license in 2055? Hmmm. Me thinks you had 2055 on your mind. But to answer your question. There is no real time savings, maybe the form is 10 minutes faster to do but likely not if you were not already proficient in several and have pre built templates. FNMA is explicit in requiring you obtain information about the interior condition. It does not give you a bye to simply say that the condition of the outside is "average" or whatever, therefore you ASSUME that the interior is likewise. No. You need to have a source of information about the interior, say from an expired listing, or someone else who has been inside. You check that to determine what the condition is in. So, in my opinion, my discount would be marginal... $25, $50 at most.

FROM OLDER AF POST
The option for providing a streamlined appraisal that is based only on an exterior inspection of the property
(using Form 2055, 2065, or 2095) is based on Desktop Underwriter’s risk assessment of the mortgage and
the appraiser’s ability to obtain sufficient information about the physical characteristics of the subject
property from reliable sources. When Desktop Underwriter recommends an exterior-only property
inspection, the appraiser’s description of the physical characteristics of the property should be based on
what he or she considers to be reliable data sources for the property and location. The appraiser should
use the same type of data sources that he or she uses for comparable sales. Acceptable data sources
include the following:

multiple listing service (MLS) information,

tax and assessment records,

information from prior inspections or previous appraisal files, and

information provided by the property owner.

 

[Tim The Enchanter]

How you are supposed to have a clue about repairs based on a driveby is beyond me.
Maybe if they supply you with an inspection report.

 

[Carnivore]

So strange that this assignment is called a REO = 'Real Estate Owned'. If they own it they can get you in it!

More Fast N Cheap crap!

 

[Mr Rex]

Most 2055 REO assignments are pre-foreclosure and they want the REO addenda to see competing listings to help make the decision on how to deal with the courthouse foreclosure sale. It's how the lender decides whether to set a minimum bid or simply let it go for whatever someone is willing to bid. At one point significantly over 50% of my work was REO related and I have talked to the REO department at several lenders and several local RE agents that specialize in REOs. You would be surprised at how much you can glean from an exterior only REO in regards to overall condition when you get the REO interior assignment on the same property a few months later. Not to mention alot of the form is already filled out when you merge the 2055 subject info into the new report. Good work if you can get it. MHO.

 

[Tim The Enchanter]

Most 2055 REO assignments are pre-foreclosure and they want the REO addenda to see competing listings to help make the decision on how to deal with the courthouse foreclosure sale. It's how the lender decides whether to set a minimum bid or simply let it go for whatever someone is willing to bid. At one point significantly over 50% of my work was REO related and I have talked to the REO department at several lenders and several local RE agents that specialize in REOs. You would be surprised at how much you can glean from an exterior only REO in regards to overall condition when you get the REO interior assignment on the same property a few months later. Not to mention alot of the form is already filled out when you merge the 2055 subject info into the new report. Good work if you can get it. MHO.

I've done a few where I got out and looked through the windows since I knew it was vacant.
But for whatever reason they did not want a full interior.
One of them I did 3 or 4 times.

Edit. They did not want an REO addendum. They did want 2 listings.

 

[Mr Rex]

I did one property as a 2055 every 3 months for over 2 years until I finally got the interior. I was not surprised and my arms magically grew longer so I could pat myself on the back for my great "insight" from the exterior.