Become an REO Asset Manager

Real Estate Owned (REO) property is property that reverts to the lender or mortgage company after the property goes unsold at a foreclosure auction. The mortgagee has failed to keep up with the payments and may have abandoned the property. The lender will remove some of the liens and attempt to resale the property to the public. Typically these foreclosed properties will need repairs and maintenance. The goal of the bank or lender is to sale the property as soon as possible since it is not in the business of managing properties. The REO is usually sold "as is" with the hope of getting the best price that the market will bear. Often investors or prospective home owners will make an offer on the property at a lower price than other homes on the market due to the bank's lack of desire to manage the property and its condition. The real estate manager has the responsibility to sell this property on behalf of the lender. These can be positions in high demand and there are any number of job seekers wanting to know how to become an REO Asset Manager.

Steps

  1. Understand the nature of the position. REO Asset Managers have varied duties associated with the management of REO properties.
    • Managers must obtain property valuations including appraisals and broker opinions to evaluate sales offers.
    • Managers must obtain repair bids on either damages that have to be fixed before a property can be sold, or for preventative maintenance to avoid further damage or to secure the property.
    • Managers must hire or work with any of a number of persons regarding the sale the property including on site managers, real estate or listing agents, contractors, HOA officers, eviction attorneys, and closing and title agents.
    • Managers must arrange for marketing the property, accept bids, make counter offers and generally negotiate the sale of the property.
    • Managers must make reports to keep track of income and expenses of the REO properties and report this information to internal management.
  2. Gather the training and education necessary to pursue the position. The position may require a four year degree in finance, accounting or a field related to real estate. However, several years of experience in property
  3. Management, loan servicing, appraising, or extensive knowledge of the local real estate market may be sufficient. Good analytical and organizational skills are also a benefit for the position. There are banking schools which
  4. Offer classroom and correspondence courses which help with meeting educational requirements.
  5. Locate and apply for REO Asset Management positions.
    • Locate openings by networking at bank or property management associations. Search industry job banks online such as the Institute of Real Estate Management or Select Leaders.
    • Apply for REO Asset Management positions. Go directly to local banks, lenders and financial institutions to fill out applications. Large banks and institutions like Freddie Mac or Fannie Mae may advertise on their
  6. Have a website or have a place to foreword a resume. Always follow up if there is a contact number or direct means of contact.

Tips

  • REO Asset Managers are in higher demand when borrowers have difficulty paying their loan payments resulting in an increase in property foreclosures.

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References

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