REO form

[PhiloFarnsworth]

Does anyone know what the Supplemental Real Estate Owned Addendum required by lenders for REO appraisals provides a lender? Because I work in a market where even comparable sales are scarce, let alone current listings of what are typically distressed sales, I often have wondered why three listings are required for REOs (and only for REO's). While some lenders who require two listings on a conventional report will accept one listing with an explanation that no others were available in the wider market area, three listings is a hard requirement for REO's. Unfortunately, this often results in one or two truly non-comparable on the REO listings grid (with an appropriate explanation).

Another oddity is that a reiteration of the DOM for each sales comp is required; even more oddly, the first three sales are each given their own field with the rest presumably added in a narrative field for comments about marketing and exposure times (that are already covered in the market addendum, where they belong).

Also, a general discussion about the listings used, "as-is" vs as repaired values and the typical market values vs the restricted ones (what I consider the point of the from) has no apparent field and has to be put in the "ending" addendum.

What organization created the form and who requires it? Is it just one that lenders have decided to use as an industry standard? Has there been any talk about creating a better form; maybe split it into a enumeration of damages on one and market conditions with appropriate listings on the other?

 

[J Grant]

Are you aware the listings ( and sales) do not have to be REO or distressed properties? They can be any property that might be competitive to the subject. Do the best you can with what listings are available. I assume they want the listings because for analysis purpose some of these assignments may be used to establish a list price or see if a RE agent's list price is reasonable or an offer is reasonable.

 

[CANative]

Describe/explain what you have to work with and do your best.

I hate REO assignments and charge accordingly.

 

[J Grant]

Also, a general discussion about the listings used, "as-is" vs as repaired values and the typical market values vs the restricted ones (what I consider the point of the from) has no apparent field and has to be put in the "ending" addendum.

Typically, the as is and as repaired values are for the subject only and there is a field on the form for each subject value opinion, as well as a value within X days marketing time estimate ., if asked for

 

[CANative]

Typically, the as is and as repaired values are for the subject only and there is a field on the form for each subject value opinion, as well as a value within X days marketing time estimate ., if asked for

4 appraisals. Anyone doing these for a $100 fee bump over standard appraisal assignments is a chump.

 

[spittman]

Client wants to see what they will be competing with. There are two REO forms, one with adjustments and one without. Charge accordingly.

 

[TMG]

Describe/explain what you have to work with and do your best.

I hate REO assignments and charge accordingly.

What is the main difference between a 1004 and 1004REO? ....can it be easily explained? Thank you!!

 

[PhiloFarnsworth]

I take it from the explanations so far that the listings are used for a determination of what a listing price should be. That makes sense. Given the reiteration of the DOM data already clearly shown on the 1004 I have to wonder if there are people at these lenders who look only at the REO form. Maybe it's just the specifics of my market that make a listing grid seem particularly useless, where for the past few years typical DOM has been 1-30 days (those that sold over 30 days total typically are below 30 days from the last price reduction) and therefor listings of any sort are fleeting. Although Covid has put things in a sort of suspended animation where pending listings are beginning to add up.
Someone pointed out that REO listings are not required. I would hope not or I would generally have zero listings. But just trying to find listing comps for a bilevel in average to good condition within the same school district can often end up including ranches, 2 story's as the best available listings the result being that they provide little useful information.

 

[PhiloFarnsworth]

What is the main difference between a 1004 and 1004REO? ....can it be easily explained? Thank you!!

Never used the "1004REO" form. Always have used a regular 1004UAD with an REO addendum form. I haven't yet worked for a client that has requested the former.

 

[TMG]

Never used the "1004REO" form. Always have used a regular 1004UAD with an REO addendum form. I haven't yet worked for a client that has requested the former.

I apologize, that's what I meant, the 1004 + REO addendum. I've seen them, but never completed one.