OK, Beachfunk, tell us what ya know!

REDC has formed a subsidiary called REDC Default Solutions. Jason Allnutt, President, was an executive at FNMA. Matt Slonaker, SVP, an executive at EMC/Chase. If you read press releases on this expansion it all sounds pretty mundane -- along the lines of REDC is expanding into asset management and loss-mitigation, etc...

What is not being reported and understood is that this new entity's primary revenue source and its primary focus is opening retail real estate brokerages, dba Red Crown Realty, in the major REO states (like CA where I operate).

REDC is slowly attempting to corner the REO retail market in the same unethical manner (imho) as they have in the auction market...I don't think it is any secret how blatantly REDC exploits REALTORS...and Red Crown Realty is following suit -- paying desperate agents less than 1% listing commissions...and literally raping them on additional transaction fees.

This is HUGELY important to ALL of you as listing agents! REDC management, having served as executives in the largest institutions in our industry, are able to use their inside knowledge and personal friendships at Fannie Mae, EMC, GMAC, etc...to eliminate you. It has already happened to many of you with Fannie Mae and it is just the beginning.

No matter how long you have had a working relationship with an REO client -- you will not be able to compete with the inside knowledge and personal friendships the REDC management has...and I openly question this relationship. It just wreaks of potential corruption!

Bump. Great post and topic. Thanks for this info

Ocwen, all over again?!

Can't beat'em just join'em!! Jason & Matt are making a killing but they will be millionaires. I heard you beachfunk!!!

They've been sending more and more of our listings to auction (what a bunch of incapable people those are). I'm a direct agent, and I remember back in November when we got a flood of listings after Fannie started pulling their listings from asset-management middlemen.

This post is not good for me if this is true. I'm probably higher up on the food chain than those with indirect listings, but I can't compete with executive friendships.

Also, I did a little bit of research. Sure enough, a Red Crown Realty office popped up in my local MLS. The address is a residential house that is local, but the number is in an area code about 5 hours away (the same area code listed on their corporate website for their Florida branch).

And also, correct me if I'm wrong, but you can't run a real estate office out of a residential home in Florida? Is that what I recall from my RE Class days forever ago? I vaguely remember that it's possible, but not worth it.

beach,

can you hook me up with some of those sources where you found that information?

Red Crown Realty is now a member of our MLS as well, no listings yet. Office address is their corporate office in Irvine. It appears that 3 of the agents listed just joined the MLS as well.

Only FL, NV, AZ & CA on their website

REDC is nothing but trouble.

Had a listing reassigned to us from an outsourcer back in November. A few days letter, we got the e-mail saying the property was going to go to January's auction.

That happened and all, and we get the fully executed contract this weekend. Still has the outsourcer's contact information as the "Managing (aka Listing) Agent."

Guess who isn't getting a commission and is rather upset?

Was the servicer ALS?
Did you do the required open houses etc?
I may be in the same boat..I cant get a response on the outcome of my listing which supposedly sold in January also.

Outsourcer was Green River Capital, and yes we did the required open houses (all 3)

Update:

Contacted the REDC contacted listed for that particular property and explained the situation. Got an email that was CC'd to another individual with the text "Gold Team please assist." That was this morning, and I haven't heard another peep.

I had a good laugh out of it though. It might have been sadness converted to humor though as I watched commission slip way. I went around the office all day saying "Delta Squad strike" in mockery of the e-mail I received.

I'm pretty sure I can figure out what their internal definition is for "Gold Team."

Ahem