What is a foreclosed home?

Should I get a home inspection?

What about financing?

I have a buyer for the property, what do I do?

Does ARS offer broker training?

How do I become a ARS agent?

Does “As-Is” mean I don’t need to disclose any known defects?

I’ve never bought real estate at an auction. How does the process work?

Why are MLS sheets for the comparables used required?

Why do I have to complete a new Monthly Servicing Review every 30 days?

What do I do if I have an offer before the property is listed?

How do I get invoices paid or reimbursement?

How many photos do you require on an Interior REO BPO?

How much weight should I place on recent sale of the subject?

What should I say in my comments?

Why do I complete the Repair Estimate form?

How similar to the subject do my actives and solds have to be?

What is meant by Repaired and As-Is values?

What if I can’t find the property?

Who do I contact, if I have any questions concerning certification training, or properties?

What is a foreclosed home?up

A foreclosed home is a one- to four-unit residential property acquired by lender as a result of a foreclosure action on a mortgage. The lender becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. The lender may hire a third-party management company, like ARS, to manage process.

Should I get a home inspection?up

We encourage you to get an inspection after your offer is accepted.

What about financing?up

ARS requires a prequalification to accompany your financed offer.

I have a buyer for the property, what do I do?

Contact the listing agent. The listing agent can be found by going to the Property Search section on this web site.

Does ARS offer broker training?up

Yes. The ARS broker training goals are:

• Improve the quality and depth of broker network
• Improve REO disposition performance (CFKs, securitizations, winterizations, overall property maintenance, fall-out rates, ethics, retail lead activity, etc.)
• Improve the accuracy and quality of property valuations

We believe this training improves process efficiency and service levels, reduces expenses and timeframes, and makes our relationships with our brokers and agents stronger.

How do I become a ARS agent?up

Due to the overwhelming response to our training courses, ARS is not currently adding new agents to our network. As future REO and BPO volume demands present themselves, the need to again open up the network may occur.

Thank you for your continued support and understanding

Does “As-Is” mean I don’t need to disclose any known defects?up

Though we are selling “As-Is”, we must abide by all applicable state and federal laws (including inspection and disclosure regulations) relating to the type of asset transaction we are conducting.

I’ve never bought real estate at an auction. How does the process work?up

A. Buying real estate at auction is a very simple process. However, it is important for you to be informed and prepared prior to auction day. You should inspect the property during one of the scheduled preview dates.

Why are MLS sheets for the comparables used required?up

We require MLS print outs for all of the comparables used in your REO Interior BPO. We also require digital photos. Full data sheets are needed to compare the comps to the subject property as to confirm the best comps were utilized for that particular property.

Why do I have to complete a new Monthly Servicing Review every 30 days?up

Monthly Marketing Reports contain crucial marketing data that ARS uses to obtain price/strategy revisions, if necessary.

What do I do if I have an offer before the property is listed?up

ARS will accept offers submitted via the Listing Broker, but cannot respond with price and terms until we obtain listing authorization from the Seller/client. List prices cannot be approved until a completed BPO package and appraisal, if necessary, are obtained, and a marketing proposal is prepared for our client. ARS will hold ALL offers presented before listing to be dealt with equally as soon as list authorization is obtained.

How do I get invoices paid or reimbursement?up

A. When you have an invoice that needs to be paid, you need to fill out a Request for Payment form and send this along with your invoice and a W-9 form from the Vendor, to ARS. Upon receipt of the accurately completed information, the Accounting department will issue payment. If you are requesting reimbursement, we ask for the Request for Payment form (made out to you) and a copy of the invoice and a copy of the paid receipt from the Vendor. Once Accounting has all accurate documentation, payment will be processed. Turn around time for payments are 30–45 days.

How many photos do you require on an Interior REO BPO?up

A. Our Interior photo requirements are a minimum of six interior photos plus any additional photos of damage visible. At a minimum for exterior photos, every BPO requires one subject photo and one street scene. In some cases, you may also be asked to provide address verification in the form of a photo of he subject’s house number and a photo of the street sign. The best subject photo is one that is taken at a slight angle so that both the front and one side of the house are visible. Street scenes, in addition to showing the street itself, should reveal as much of the other homes on the street as possible.

How much weight should I place on recent sale of the subject?up

A. There is no better comparable than the subject itself. If it has sold recently and if it appears the sale was an arm’s-length transaction, then significant weight should be given to it. Unfortunately, there are times when sales are not arm’s-length, but designed to defraud unsuspecting lenders. If you have any suspicions that a previous sale of the subject was something other than arm’s-length, it is vital that you express and document those concerns in your report.

What should I say in my comments?up

In many ways, your comments are the most important part of your interior BPO — even more important than the opinion of value itself. If you provide comprehensive comments with your market data, the market value of the subject will be self-evident.

Your comments describing and explaining your data should lead us to your value conclusion. Take care not to use your comments to tell us what you have already told us. Why tell us the comparable is a three-bedroom, two-bath ranch on two acres when you’ve already filled in the data fields for number of bedrooms, number of baths, style and lot size?
Subject Comments:

1. Site
   • Landscaping
   • Views and other amenities
2. Neighborhood
   • Access to employment, shopping and schools
   • Any nearby adverse influences such as traffic noise, dilapidated properties or incompatible land uses
3. Subject
   • Updates
   • Upgrades Comparable 

Comments:

Tells us in what ways each comparable is superior to and/or inferior to the subject. Comment about the block and neighborhood, and common seller concessions. Is there new construction competition? If a comparable sells for more than its list price, please explain why. It’s important that we know when seller concessions are included in the price.

Why do I complete the Repair Estimate form?up

We require the repair estimate form to be filled out in order for our asset managers to understand the overall “true” condition of the home. If repairs justify the repaired price in a certain market, the client may opt to have you obtain bids and make such repairs.

The “Repaired Values” boxes must always be filled in even if you don’t list any needed repairs. If you do not list repairs, your Repaired Value should be the same as your “As-Is” Value. If you do list repairs, please make sure the spread between your “As-Is” Value and your Repaired Value is at least as much as the amount of your Repair Estimate. If the spread between your “ As-Is” Value and your Repaired Value is not at least as much as the amount of your Repair Estimate, it’s probably because your “As-Is” Value is too high. A prudent buyer will not pay more today than what he can sell a property for once it’s rehabbed, minus the cost to do the work. In fact, an investor will typically require an even bigger spread for profit and risk assumption.

If you rate the subject’s condition as Fair, Poor, or Damaged, a repair estimate must be provided. If you rate the subject’s condition as Good or Excellent, do not list repairs.

How similar to the subject do my actives and solds have to be?up

Marketplace or neighborhood similarity is critical. If the comps are not from the subject neighborhood, they must be from the nearest competing neighborhood. Marketplace differences are almost impossible to accurately adjust for. Obviously we want a high degree of physical similarity as well. If the livable area of a comp is more than 20% larger or smaller than the subject, you will be asked to provide another comp unless you make a compelling explanation in your comments.

What is meant by Repaired and As-Is values?up

“Repaired” means (regardless of client) what the property would sell for if in its highest and best condition (regardless of cost), whether it is an interior or exterior inspection. We are looking for full-market values. In other words, if price was no obstacle and we completely repaired the subject, what would the property sell for? Then one should estimate the cost of these repairs to get the subject to top condition. One possible way to come to the As-Is value, is to take the repaired amount and back out the cost to repair. Current comps may not support this value, and so this should be measured against this value.

You will be held accountable for your values from initial Drive-by to REO assignment!

When you get an REO that you have previously valued, we use both of these values for reconciliation. When you are providing ARS with a Drive-by value, the repaired value should be the highest price you would be able to get for the property. The repaired value should never change from drive-by to REO. That value is the highest and best value possible for the subject. The only thing that should change on your values is the “As-Is” price in order to discount for the necessary repairs needed that were not noticed on the drive-by inspection.

What if I can’t find the property?up

First, check out www.netronline.com or www. USPS.com on the web. Also check your local post office. Keep in mind that we frequently ask you to value properties that are new or very recent construction.

So even though the subject may not show up on any of your in-office resources, please make a physical inspection of the vicinity where you believe it might be to see if you can locate it. If that fails, please contact your REO Asset Specialist. You can also call Pre-Marketer and the old appraisal title company’s subdivision map can be pulled; simply provide the legal or tax assessor’s parcel number.

Who do I contact, if I have any questions concerning certification training, or properties?up

Please e-mail any questions to:

ABSREO, Inc works closely with real estate agents, attorney's, appraisers, title companies and contractors to ensure all aspects of the foreclosure process is completed quickly and efficiently.