INITIAL ASSIGNMENT TO CLOSE OF ASSET

INITIAL ASSIGNMENT TO CLOSE OF ASSET : 

INITIAL ASSIGNMENT TO CLOSE OF ASSET

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The following is an overview to train and refresh those working in REO property disposition. It is of extreme importance that all tasks be performed before the date they are due because of the grading systems in place by individual clients. In the event you are unsure of exactly what is being requested do the following:   Read the instructions. All assignments will come with specific instructions as to how that particular client wants the asset handled to prepare it for marketing and sale. Ask Questions. Only after an assignment is read should the agent call for assistance. More than likely another agent has worked with your new asset company and will be familiar with their processes. Do not take for granted that you handle every property the same way. Communicate Properly. From the beginning of an assignment, make sure you are communicating in a timely manner through the information portal provided by the client. Examples of such “portals” are REOTRANS.com, RES.net, FNAMS, FANNIEMAE Multi-Form, HomeTracker, in addition to management systems specific clients privately own. Understand what portal they use and daily review these systems. At no time, without specific authorization from the BIC, are you to call any asset manager directly. This is only to be done with specific permission!

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INITIAL ASSIGNMENT Once a property is assigned to you, there is a time-frame for completing tasks. The first step is to obtain:   Helpful Information Needed Before Visiting Property Assignment Occupancy is to be completed on each property within a 24 hour period of time but most should be completed earlier, within the first 8 hour period. To prevent issues arising, the earlier this is done, the better. Before going to determine occupancy, several issues can be dealt with to assist in understanding about the property.   Call the Utility Company: Before traveling to the property you can feel relatively sure whether or not it is occupied by calling to see if the power is on at that address. You know to expect the resident is still in the property and can be prepared to present them with a relocation assistance package (Cash for Keys). Always take at least a couple of copies of these agreements from the specific client when you visit your property to determine occupancy. Search the Assessor Office Tax Records: By doing this you can know who the former mortgagor is, or is supposed to be. This will make your job easier if you meet the individual at the door on your initial visit to call them by name and determine whether they are the former owner or if they have rented it to another party. If the former mortgagor does not reside at the address, make sure you take the name of the person renting or leasing the property. Pull Up All Back Information about the Property on the Multiple Listing Service: The information provided on the MLS will inform as to the past sales on the property, short-sale possibilities and general pricing of the property in the past. It will also help you determine the area and whether it would be advisable to have another agent assist in the initial visit to the property.

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B. Vacant And Occupied Properties Vacant Properties: Always make sure when visiting the home that you make your presence known by knocking repeatedly on the front door. There may be times that a property appears vacant when, in reality, there may be an occupant inside the residence. Do not take this for granted, even if a property seems to be abandoned. While at the new assignment, examine the premises. What you are looking for are issues that can cause liability for your client such as broken windows, doors ajar, open pools (even if they have a fence), leaking roof or missing shingles, missing rails or rotten decks, exposed wiring: or any of a host of issues that, if continued unattended, will present a liability issue for the client. Visually look inside the property to see that all personal property is gone and immediately contact the client via their portal to indicate a vacant property. You will also be instructed by most clients to have the utilities activated and the water turned on. Keep the power off at the breaker box, tape over the water heater breaker with tape saying “Do Not Turn On Switch” to prevent the water heater from becoming ruined, especially if it has been winterized. Turn water off at the road until later when inspections on the property will be made. Many companies will have national preservation companies to trash-out and clean the property, make sure you know whether the client has such a company or whether our company does the initial services. Initial services include re-keying the doors, all trash removed with cleaning of the property and initial lawn services. From October to April, an additional task will be winterization. The main issue is notifying the preservation company immediately when you notify the asset manager of a vacant property. All vendors used by our company will need to present bids or proposals for the initial services with 48 hours of notification by the agent so we can present these to our clients. Make sure all work approved has an approval email with it since no payment will be made without authorization. All authorized work needs an original invoice mailed to the home office and dated and time-stamped photos of the “before” and “after” work performed. Occupied Properties: If a property is occupied, most banks want immediate contact with the former mortgagor to determine whether they are interested in relocation assistance (cash-for-keys). The purpose for making this initial contact is to preserve the property, establish a firm date for vacating the property, assist the former borrower and prevent the costliness of a complete personal property eviction. It is important for the agent, prior to visiting the property, to know the name or names of the former owners: this is found on the tax records. Establishing whether the occupants are the former owners or tenants is important as well on the initial visit so that this can be relayed, via the bank portal, as to how to proceed. Explain the relocation assistance to the occupant and inform the client as to whether this is agreeable with the occupant or what it will take to vacate the property. In rare cases, where tenancy agreements are in place, assistance or month-to-month rental agreements will be offered. This is client-specific, follow the directives found in the listing agreement. Make sure these occupied properties are visited, at a minimum, every two weeks to prevent vandalism should the former occupants move out unannounced. These occupancy status reports need to be completed every week to inform the bank of the current status of their property. (Important: Establish Communications with the Neighbors!! One of the most important things any wise agent will learn is to establish lines of communication with the neighbors adjoining the subject property. Ask questions! These should include: Are the former occupants still living in the property and when did they last see them? Get a phone number of that neighbor and give your card. Establish a relationship. Utility, water, gas companies for the area with phone numbers. Also, who the HOA President is and how to contact that person. This includes “condotels”. Solicit the help of surrounding neighbors by requesting participation in reporting any suspicious activity. This action will support local community efforts in curbing vandalism and vagrancy.)   Continued on next page

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B. Vacant And Occupied Properties     Once contact is established with the occupant, inform them that the eviction process is imminent and that you are there to assist in working with them to determine whether the bank can offer assistance in the form of cash for keys. Make sure the occupant / former owner understands that the property must be left in “broom-swept” condition if they expect to receive cash-for-keys and all trash is to be removed both inside and outside of the property. If they fail to comply, let the occupant know in a nice, but firm manner, that the personal property eviction has been ordered and could occur at any time and that it is in their best interest, to prevent the embarrassment of their personal property being taken and placed on the street, to work with you as the agent representing the bank. Make sure that if he bank agrees to cash-for-keys that photos are taken on the initial visit, the occupant signs a W-9 form indicating where tax receipts will be sent to, they sign the cash-for-keys agreement with a specific time to vacate the property, and are given a copy of all documents. Photos on the day of vacancy also need to be taken to verify that no unauthorized items have been taken which need to convey with the house. IMMEDIATELY REKEY the property with a new lock, key and lockbox. Note the cash-for-keys executed on the appropriate website and make sure the agreement and W-9 has been uploaded to the client, if this has not already been done already.   (VERY IMPORTANT NOTE: When making the initial occupancy check, if the owner says they are working with an attorney on bankruptcy proceedings, immediately cease the conversation, request the name and phone number of the attorney, and upload that to the asset company to have their legal team take the steps necessary to confirm this information.)

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II. BROKER PRICE OPINIONS – VALUATING THE SUBJECT PROPERTY  Valuating an assignment is important for several reasons and should deserve the greatest of care and logical presentation by the agent assigned to the asset. Before attempting to complete a broker price opinion, the following should be researched.   Tax Records as to whether or not taxes are currently owed on the property. HOA information with contact information as to whether fees are current. Repair Bids or Repairs Needed to Bring Property to Financeable Condition. MLS information about the number of comparable properties in the area, tenant vs. owner occupants, whether the subject property has ever been on the MLS prior to the assignment, how many bank-owned properties are in the area which may affect the marketability of the subject, and whether there are similar development projects to the subject property currently in construction with what these properties are being built for. All of these factors greatly influence the pricing of the asset. An additional note: please comment if the property is an “over-build” or “under-build” for the area. Use terminology such “non-conforming” to the subject area, and explain why the asset being valued is either an over or under improvement for the area. If there are unique features affecting the desirability of the property: it is important they are noted on the BPO. Examples can include heavily traveled roads, high-intensity power lines near the subject, flood-prone areas, properties in the flight path of the airport or close to train tracks, and areas prone to special assessments. (Make sure photos are taken to support these claims.)

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F. Active and Sold comparables need to reflect the local market and the specific value of the subject property. This means that all active and sold comparables need to be from the same subdivision or area, preferably within a 3 to 5 mile radius, if not in the subdivision itself. Other considerations in choosing appropriate comparable properties should include: square footage, age of property, and condition most like the subject property. Adjustments are usually required to give appropriate value to the subject property and should reflect the following: if the comparable property is in better condition or has more features than the subject, the adjusted amount should be subtracted from the subject against the comparable, if the subject is better than the comparable, the adjusted amount should be added to the comparable. ALL COMPARABLES USED AS “SOLDS” SHOULD BE ONLY USED IF THEY HAVE CLOSED WITHIN THE PAST SIX MONTHS. ONLY IN RARE INSTANCES, SUCH AS RURAL PROPERTIES, SHOULD THIS BE DIFFERENT. IN ADDITION, IF THERE IS A CHANGE OR SOMETHING OUT OF THE NORM ON THE BPO, IT SHOULD BE MADE A NOTE OF IN THE COMMENT SECTION OF THE OPINION.  (HELPFUL HINT: When gathering your information for valuating any property, think through logically why you feel the property should be marketed at that price. The example of a lawyer is best suited for doing a good Broker Price Opinion. When preparing for a case the lawyer: 1) gathers an abundance of information, 2) Arranges the information gathered in a logical and easy to be understood format, 3) Submits his brief as to why he or she feels the jury should decide with his form of reasoning, 4) Summarizes all the facts to a clear, concise conclusion. If you will follow this form of reasoning in your opinion of a property value and structure your BPO accordingly, you will always have an acceptable Broker Price Opinion.)   ALWAYS, ALWAYS, ALWAYS TAKE YOUR TIME IN VALUATING ANY PROPERTY. ALL ASSET MANAGERS REQUIRE AN ABUNDANCE OF INFORMATION AND PICTURES BEFORE GIVING ANY LISTING AGREEMENT. REPEATEDLY THE ONE POINT OF EMPHASIS FROM ASSET MANAGERS IS THAT THE DIFFERENCE BETWEEN AN AVERAGE BPO AND A GREAT BPO IS THIS MATTER OF INFORMATION AND PICTURES. REMEMBER, IF YOU PRICE YOUR ASSIGNMENT CORRECTLY FROM THE BEGINNING AND EXPLAIN HOW YOU ARRIVED AT THAT CONCLUSION, AND IT MAKES SENSE, IT WILL MEAN THE DIFFERENCE BETWEEN AN OVERPRICED PROPERTY AND ONE YOU CAN SELL: GETTING IT RIGHT FROM THE BEGINNING WILL GET THE PROPERTY SOLD IN LESS TIME AND BUILD TRUST WITH YOUR ASSET MANAGERS SO THAT FUTURE PROPERTIES VALUES ARE TRUSTED BECAUSE THEY HAVE WITNESSED FIRST-HAND THE PROFESSIONALISM WITH WHICH YOU HANDLE YOUR JOB. Sloppy or half-hearted work never grows trust or business. Please take personally the job you do, it is a reflection of who you are.

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III. WEB-PORTALS: PROCESSING INFORMATION BETWEEN THE AGENT AND THE ASSET MANAGER  It is important to remember that the relationship between we and our clients is one of partnership. Simply put, it is working together to sell properties for the highest yield in the shortest time in a fair and open market. To accomplish this, there must be a method of communication. As a result most banks have established information portals for communicating with their agents. (example: RES.NET, REOTRANS, HOMETRACKER, FANNIEMAE Multi-form, etc.) Since assets have increased dramatically over the past few years and work-loads have tripled for many of the asset managers, all communication is sent through web portal sites and so that a record of correspondence can be kept on any one property whenever it is assigned. With this in mind:    A. Know Your Communication Portal and Check It Several Times Daily   Do not take for granted that you will be notified on tasks that need to be done on your properties or that your property will always be in the portal assigned to your particular office. On many occasions, tasks are due and may be in the portal of another office. This is why it is vitally important to find where your property is, maintain it daily, and check for changes. When accepting any assignment, make sure you know where to go to communicate with your asset manager. Find out if they use one of the familiar sites or whether they have their own company information portal to communicate through. Make notes on your files what portal you use to communicate on that particular asset. NEVER send an email directly to your asset manager unless specifically told to do so. ALL communication is to be entered through the portal; your asset manager is requiring this method for communication and record keeping.   B. Never Have To Be Told About Tasks That Are At The Time Limit or Overdue.   Since assignments are based on quality work and completion of tasks before they are due, it is important for all agents to realize this method is required for future property inventory. One integral part of the work ethic of this company is to understand that we all rise or fall on the merits of each other. If we do a great job together, we all benefit and if one person refuses to fulfill their assignments, it affects us all accordingly. Professionalism and quality work is expected and required by all since we, as a team, are working to increase our earnings.   C. Maintain The Company Task Management System.   Due to the vast coverage areas we serviced, it is important that every agent input any task performed on the in-house management system. This is a requirement, and to neglect to do so will be deemed a refusal to perform duties assigned to that agent.

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IV. UNDER CONTRACT UNTIL CLOSING THE FILEThe work of getting a property to the closing table just begins when an acceptable offer is accepted by the client. Relaying information on the offer and submitting it correctly is crucial to either a successful closing or an offer that is rejected because information was either not conveyed correctly and timely or the offer was not presented with the entire required documentation.   Our clients have given specific instructions on how to submit offers and what they need to process their files. Most banks require a closing cover sheet listing all closing parties, signed contracts, addendums, copies of earnest money and mortgage commitment documentation with various other documents relating to conveying the property. (Will vary from client to client) It is for this reason you need to pay close attention to what makes a great closing agent. After all, it is vital to get the property closed before being paid!! Before submitting any offer: Make sure all documentation has been received. DO NOT accept any contracts until ALL information is received including the contract, copy of earnest money in certified funds if held by our company, pre-qualification or loan commitment documents. Only after these documents are received do you submit the offer electronically or email them to the asset manager. (See Instructions for each file on how to submit the offers.) Earnest Money: Most of the time this will be held on behalf of our client in our trust account. EARNEST MONEY MUST BE DEPOSITED WITHIN 48 HOURS OF AN EXECUTED CONTRACT, WHICH MEANS THAT ALL PARTIES HAVE SIGNED THE CONTRACT AND ADDENDUMS. FAILURE TO DO THIS IS A MANDATORY DISMISSAL SINCE IT IS A REQUIREMENT OF THE SC/NC LLR. If you have an accepted offer and you just have a copy of the earnest money check made out to our trust account, PICK THE CHECK UP IMMEDIATELY OR HAVE THE BUYERS’ AGENT BRING IT IMMEDIATELY DUE TO THE TIME FRAME FOR DEPOSITING EARNEST MONEY. Copies of certified earnest money checks should be kept in each file. When the earnest money is deposited, the agent needs to put the following on the receipt given by the bank and this should be immediately mailed to the Broker-in-Charge. Information on the deposit receipt should ALWAYS have:   Name of buyer / Name of Seller (specifically the client we are working with) FULL address of the property under contract including the city Certified check number received and deposited into the trust account.   When requesting earnest money for closing, the agent is responsible for getting the earnest money check sent to the closing attorney in plenty of time for any checks to clear. Under on circumstance, except in extreme situations, should earnest money be sent over night for delivery to the closing attorney. BE PROACTIVE, FIND OUT WHEN THE PROPERTY IS TO CLOSE AND GIVE US PLENTY OF TIME TO GET THE EARNEST MONEY TO YOU. WE DO NOT SEND ‘WIRES’ FOR LATE CLOSINGS. (charges for sending over night packages will be deducted from the agents’ commission due to lack of communicating with the closing attorney.)

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C. Sending the Contracts: Every client has a particular way the agent is to submit the contract and addendums. Do not send partial or incomplete documentation or fail, if requested, to fill out the closing sheet for the asset. Get the contracts in on time, never should a client be seeking a contract we should have sent. There will be no toleration of the excuse that “the buyers’ agent did not get it to me on time, it is YOUR duty as an agent for this company. Executed contracts are to be sent to all parties involved in the closing including the buyers’ agent, buyers’ attorney, lending institution, and the closing attorney for our client. All agents are responsible for coordinating inspections and having all utilities turned on AND OFF for their property closings.   D. Follow up on Closings: From the time a property goes under contract, until the close date, the agent needs to weekly call the buyers’ agent, the attorney, or the loan company to make sure every aspect of the closing is going as scheduled. This information needs to be relayed to the closing coordinator for the client we are working for. DO NOT LET A PROPERTY JUST HANG IN LIMBO ONLY TO FIND OUT IT IS NOT GOING TO CLOSE A COUPLE OF DAYS BEFORE IT IS DUE TO CLOSE. This is a duty of the agent assigned that particular file. There will be no excuses for this lack of performance and constitutes an immediate dismissal.    E. All agents are expected to represent our clients at property closings. The ONLY exception to this is HUD, unless we have the contract “in-house” which we must attend. ALL agents are to attend closings, no exceptions! Call the closing attorney and make sure you are there and notify them you need to be there and would appreciate a call prior to the closing date.   F. Closing Check Lists: Whenever a property closes the agent will be required to send to our closing coordinator a check list indicating that all utilities, water, and services have been turned off. In addition, the name of the person they spoke to at these companies will need to be included. Every line on this form is important and needs to be filled out. Our company will not pay late bills we cannot be reimbursed for, so it is important that all services be turned off at closing. ALL LOCK BOXES AND SIGNAGE NEEDS TO BE TAKEN OFF THE CLOSING PROPERTY AND ACCOUNTED FOR. Before a file is closed, it MUST contain the following:   1. Listing Agreement Signed by Client 2. MLS Sheet (Closed MLS Sheet) 3. Copies of all Approved Invoices by the Client 4. Any Agency Documentation when representing Customers. 5. Copies of Earnest Money Checks Received and Sent 6. Copies of All Offers Presented on that Asset 7. Disclosures and Inspections 8. Executed Contracts (both seller and buyer signature) This also includes extensions or addendums to extend the closing. 9. SIGNED copy of the HUD-1 Closing Statement on Left inside Cover 10. Closing Check List Submitted At Close of File

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Finally, we all realize that there are situations that arise which are out of the “norm”. Our purpose is to work with you so that we all benefit. Avoid “taking the easy route” and realize that top producing agents are those who go “the second mile”. Take pride in what you do so that you never need to be called for lack of attention to detail. Our common good is served when each agent does an excellent job since we depend on the mutual excellence of all!   Remember, if there are questions:   1. Read 2. Ask Questions 3. Follow Up With Proper Communications

INITIAL ASSIGNMENT TO CLOSE OF ASSET : 

INITIAL ASSIGNMENT TO CLOSE OF ASSET