I just got back from the 5 Star Default Servicing Conference and Expo in Dallas, Texas this past week. This was my first REO conference. Wow, what an event!

The organizers did an incredible job putting this program together. There were over 5,000 participants ranging from real estate brokers like myself to asset manager to senior executives of larger lending institutions. I met with people from Nationstar, REOTrans, USRes, Freddie Mac, First Preston, Lighthouse, Keystone, Green River Capital, and Fannie Mae. The event was topped off by a classic rock and roll performance by REO Speedwagon. Oh yeah, Eric Estrada from CHiPs fame was there too. What was even better was that I was able to talk to many of these people one-on-one and get the inside scope on what is going on in the REO market. It was an incredible education for me.

Here are a few highlights that I took away from the event:

1. Banks and Asset Management Companies Need Agents. There is an incredible shortage of highly skilled and professional REO agents in most markets. Obviously, some markets like Southern California are saturated but there are other markets that they are having an incredibly difficult time finding good REO agents. At one seminar, an asset manager was pretty much assigning properties right there to ANYONE in Kentucky. She was desperate for agents.

2. Short Salas Are Going To Be The New Paradigm: Several lenders are starting to roll out large scale short sale programs whereby they have already FULLY APPROVED a short sale before the borrower even knows what is going on. Many of the nations banks, like IndyMac and Washington Mutual, realize that short sales are less costly and more community minded than a foreclosure. So, they are currently testing programs where a borrower will receive a letter that has already approved them for a short sale and assigned a real estate agent to help them with the process. The borrower then just has to list the house at the banks pre-approved price and they can save their credit and dignity. The bank will even pay them to move out. Several of these banks are looking to develop a large scale network of agents to list and sell these approved short sales.

3. Communication, Communication and Communication: I spoke with at least 10 different asset managers and asked them what their biggest problem with real estate agents was–communication. That is it. Simple. Easy. Many REO agents do not communicate with their asset manager. They don’t answer their phone or return email or voice mails in a timely manner. They hide when there are problems. If you want to make an asset manager love you–and give you more business–the biggest key is to constantly be communicating with them. Anytime there is an issue, tell them. Even better, let them know BEFORE problems arise. As long as you keep the communication channels open, you will continue to maintain a strong working relationship with the asset managers. I have been to many real estate events in my career and this was by far the best. I learned so much and made so many great contacts that my to do list on Monday is pages long.

Sincerely,
Mark Shandrow
Keller Williams Realty
Long Beach, CA