Working As an REO Settlement Agent

If you are looking for a new career to branch out on or are a licensed real estate agent, you may want to consider working with banks or lenders and adding Real Estate Owned (REO) to your resume. REO settlement agents are used by banks to market foreclosed properties. They sell everything from houses, lots, apartments, condominiums and even commercial property. REO agents earn an average of $38,000 a year and have the potential of earning more the more they sell.

Train

If you do not have a real estate license yet, invest in a training program that will help you get that license as soon as possible. Once you do, you can either go for a salesperson’s license or train to be a broker. The difference is salespersons work for brokers and earn commissions based on what the broker sells. Brokers can work independently or work with a firm. A final touch would be passing the required state test. Once you have all that, you are ready to go! A good place to start is your local Realtor®’s association.

Have the Know-How

A very good knowledge of the foreclosure process, the laws that govern it and the marketplace makes you a very hirable commodity in the market. Study up with the training agency and invest in books or check out the extensive articles online to bone up and make sure you are prepared.

Finding Employment

REO agents traditionally work for banks, credit unions or companies that manage assets such as credit repair agencies or asset management corporations. The key person you need to get in touch with is the asset manager.

You can also choose to work with the company as a freelance agent. In this case, settle on clear-cut contracts of how you earn you commission and what qualifies as a sale for you.

Creating your BPO

REO agents usually create a Broker Price Opinion (BPO) for a certain property the bank wants to sell. Many bank-owned homes are sold this way. Your training and practice should help you know what exactly to put on the BPO. Usually this is composed of the listing price for the property and how much it is potentially worth. A winning BPO can mean the difference between hiring, a sale and that potential commission.

Compiling Listings

Once you find a bank that is willing to work with you, you can start compiling multiple listings. Many real estate agents use a MLS or multiple listing services to add their list of homes to sell on a massive database. You can use other avenues, too, such as going online or taking out ads. Do not forget the importance of going door-to-door as well!

Creating Contacts

Once you got everything you need, you can start creating your network. This should comprise of other REO agents, potential clients and people who can lead you to potential clients. Developers, investors and people who are in the market for homes are your targets — remember the bigger the client, the bigger the potential sale.

Remember, it is going to take persistence and savvy, but the payoff is potentially huge and rewarding. Good luck and have fun embarking on your new career.