Ten Things That REO Asset Managers Hate!
3. Bungled Cash for Keys
When a bank takes back a house because the borrower has defaulted, often taking possession of the asset can be problematic. A common solution is to offer cash to the occupant in exchange for a surrendered property, alas, cash for keys.
This solution relies normally on a REO agent to do the negotiating. The agent will show up at the front door or call the occupant and try to negotiate a seamless and drama-less deal. Mr. occupant, I am authorized by the bank to cut you a check for $2,000 if you agree to vacate the premises in one week leaving the property in Broom-swept condition.
No problems, right! Well if the agent is compassionate and competent, then yes! However, REO agent, please do not offer more money than the bank has okayed to offer, please do not harass, or con the occupant! Please do not turn off their utilities or threatened personal harm to them. As most things in life, a simple solution often can turn out to be an absolute nightmare.
Here is a good starting point agent, treat people the way you and your family would like to be treated. Be an honest, caring solution in a terrible situation. If we do our jobs right as REO agents, we not only help the specific situation by getting the bank the property back and having the occupant move on with their lives with a little extra cash in their pocket, but we can help improve the whole image of our industry as compassionate facilitators, rather than heartless money grubbers!