Bank of America REO Asset Management Companies
The current foreclosure rates in most parts of the country are skyrocketing. Almost all mortgage lenders and banks that were actively financing residential real estate properties before the credit crisis of 2008 are inundated with REO properties, currently.
To keep up with the rising volume of reo homes adding to their inventory, lately banks are often engaging the services offered by "REO asset management companies" that specialize in facilitating REO and foreclosure services to efficiently handle their repossessed homes.
Repossessed properties acquired by the note-holder after a foreclosure sale are considered to have become the entity's "Real Estate Owned" or REO. These bank owned properties are sought-after by real estate buyers and investors. Bank of America's REO asset management division handles all aspects of REO sale process. Due to their large size, Bank of America also employs the services of outside asset management companies to handle maintenance, listing and any other reo-related services. REO asset management companies also perform all needed procedures and steps involved in loss mitigation related to foreclosed and repossessed homes for sale.
REO vendors and REO listing agents are required to sign-up and get approved an REO asset management company to become their approved, or preferred, service provider in a given area. To tide over the tough times due to the current home construction slump, contractors, painters, landscapers, plumbers, appraisers and any others looking to provide maintenance services related to REO properties can contact the reo asset managers of major banks such as Bank of America in order to receive a regular stream of work orders to supplant their current income streams.
Bank of America asset managers that belong to REO management department are primarily assigned with the task of selling the bank's outstanding reo inventory as quickly as possible at the best possible. REO property is more of a liability than an asset to the bank holding it in its inventory. A number of costs have to be borne for so long as the property shows up as unsold on their books. On a residential reo home, Bank of America must bear the costs associated with maintenance, property taxes, hazard insurance and utilities. These accruing costs usually compel a lender, in due to time, to accept very low offers, some of which they might have rejected in the past.