Lenders Need to Act Faster Than REO Home Price Changes.(Managing REO)(dynamic real estate )(Conference notes)

Byline: Jennifer Harmon

Hollywood, FL-Values are changing so quickly on REO properties that lenders are asking for updated BPOs within 60 days, according to speakers at the REOMAC fall conference here.

In fact, monthly reports on properties are becoming more and more relevant. As a result, many say asset managers should eventually collect a BPO every month in order to introduce market trends and get price reductions.

"Once that number is set, the fair market value, that's the number we will start the property listing with," said Molly Merchant, REO manager with Citi Residential Lending Inc., on the "Valuations, Pricing & Today's Market" panel. City Residential Lending requires two broker price opinions from agents. "It's really important the agents work with the asset managers. That's where knowledge and experience come together to get the value."

Michael Harris, vice president of operations, First American REO Servicing, says seeing reports on a monthly basis is important relative to what activity has occurred on the property and whether or not it is valued right.

"Have you done an open house and has it been successful? What is the number that is being presented? It starts giving a feel if the pricing is not effective. If we are seeing very little showings and no offers, then it's a pricing issue."

According to Ms. Merchant, lenders are seeing "as-is" listed and sold property comparables as well as "repaired" listed and sold comps.