The exact role played by an REO Asset Management department confuses even experienced real estate professionals. An asset manager’s priacquisition of the property after the foreclosure auction to its eventual disposition after selling it to a new buyer. Working with HSBC REO asset management department and following the procedures they have, allows listing agents to be approved to list HSBC REO properties in their locality.
As the foreclosure crisis deepened due to the credit crisis and real estate declines, across the nation, over the past three years. It is expected to go on well into 2011, before any relief can be visible and a turnaround begins. All the Banks, national, regional and local, have been being inundated with accelerating growth in foreclosure default filings, along with bank REO foreclosures.
I addition to the losses incurred due to lost monthly payments and foreclosure proceedings, banks and other mortgage lenders continue to pile up more expenses on these properties due to continuing costs. They not only have to pay fire insurance, utilities (electricity, water) maintenance, and landscaping. As the urgency increases to cut down their already steep losses, banks have been seeking the services of REO asset managers to help them unload these REOs.
HSBC REO department is the single point of contact for all queries related to their inventory of repossessed REO homes. At the current moment, REO asset managers are playing a major role in helping banks such as HSBC dispose of their ever growing numbers of REO residential homes. Major Banks sometimes outsource the entire management of the REO portfolio properties through external REO asset managers to streamline their operations.
REO asset management involves several tasks. They hire property managers, real estate brokers, and other consultants who will collaboratively work together to ensure that all the repossessed, delinquent, and foreclosed reo properties are either rented or leased, maintained, and marketed for ultimate sale. This process for HSBC REO listings is internally handled by HSBC’s REO department. You can contact them through phone or their website. Getting in touch with REO departments can be daunting and involves a great degree of persistence on the phone, to get through and establish a working relationship.