What is an REO Addendum?

[Stephanie Welch]

REO companies cutting fees....or trying anyway.

These get a higher fee; I charge about 150% of normal residential fee for them.[/QUOTE]

We too charge extra to REO's. Has anyone noticed that the companies that order these are trying to cut the fees now. We had a company ask us to do one for the same that we charge for a regular 1004. Sounds like someone in my market is cutting fees!! Needless to say, we turned it down.

 

[Ray Miller]

Know you market now.
Know what your market is going to be in 120 days.

Know real cost of repair.

Know what your market will pay for damaged property today and in 120 days.

Know if a D-8 should take care of the problem or not.


I have been ask by one of my Investor Banks to review several REO appraisals in the past month for the simple fact they did not sell for what the appraiser had forcast they would sell for. One missed the mark by some 25K the other by 15K. A little black bird said they might be looking to go after the appraiser for the balance. They had paid to repair the subject property and it did not sell for the forecasted amount within the time farme stated in the report.

So be sure you really know your market.

 

[Joe Booth]

My REO client requires an itemized cost to bring the property to FHA marketing standards, a 30-60 day "AS IS", an 30-60 day "AS REPAIRED", a 90-120 day "AS IS" and a 90-120 day "AS REPAIRED".

 

[Trebor]

REO

I use the Marshall & Swift remodeling cost guide for estimates. I don't remember offhand, but I think It's around 30 bucks. It probably Is'nt as accurate as it should be, but at least I have some data to fall back on. I love those REO's. You don't have to make appointments, and you are there all by yourself to take as much time (or as little) as you need.

 

[Webbed Feet]

<snip>......I visited 2 today. 1 covered in dog feces, the other reeking of cat urine and piled high with garbage.

Jim Scrivens <snip>

Mr. Scrivens,

You may now consider seeing a doctor. .. Any REO house "reeking of cat urine" stands a higher than typical chance that the smell was NOT cat urine.. that the house was a meth lab.

Barry Dayton

 

[Webbed Feet]

<snip>they did not sell for what the appraiser had forcast they would sell for. One missed the mark by some 25K the other by 15K. A little black bird said they might be looking to go after the appraiser for the balance. They had paid to repair the subject property and it did not sell for the forecasted amount within the time farme stated in the report. <snip>

Mr. Miller,

Very astute... The problem is appraisers have been relying on a fast appreciating market to bail them out for way too long... In fact, one could say an entire "generation" of appraisers have never known anything else other than a fast appreciating market that was covering up all their mistakes.... Hence I say, "Cost to Cure" will very soon be turning into "Cost of Getting Yourself Sued" due to all the "economic experts" we have running around relying on books to tell them the repair costs on things they are not experts on estimating themselves, but do so anyway... Wait until appraisers start being held liable for those "Cost to Cure" estimates they are making to arrive at "As-Is" values.

Barry Dayton