I was just thinking that with REOs being down as much as they are it leaves the "Problem Child REOs" as a larger percentage of our assignments.

Problem Child #1 has been in PP eviction for on year. There has never been a human at the property and we check it once per week. Latest hoop. Try to find the former owner via posting the house and certified mail to determin if they are in the military. So far no response.

Problem Child #2 has been in redeption for 4 months.

Problem Child #3 had a house with a detached garage. Home was refinanced and the garage was not placed on the new mortgage. So, the owner sold the garage (which is on a seperate lot) to a neighbor.

This one went to title claim. (Preservation company originally tagged the property as Occupied by personal property, tools etc.) The new owner was kind of POed that the preservation company broke into their garage to take photos.

So, for us that is 3 assignments that we are taking care of for up to a year and can not market.

Let the fun begin.

This is an absolute travesty. I guess you must have a lot of listings to run into these kinds of problems. I've had a borrower declare BK after foreclosure which halted everything. And I'm about to lose a listing because owner wants to stay in the lease and Fannie doesn't sell occupied properties.

#1 I have a property that was assigned to me in June 2010. The tenants say that they just signed a year lease. 10 months later I am told that the lease is not valid because the former owner and the tenants are related. This property is in a remote part of my county and is about 1 1/2 hour round trip. I have to do weekly occupancy checks.

#2 foreclosed August 2010. Former owners are still in the property as of today. Weekly occupancy check, 40 minute round trip, opposite direction from #1.

#3 tenant occupied with month to month lease. Owner decides to lease property to tenant for 1 year. Weekly occupancy checks the whole time. 30-40 minute round trip. Different direction from #1 and #2.

What county are you located in?..........sounds a lot like my area.

Oh wow Grampa what a nightmare... I have one a child just like your #1 example....After deal with squatters and weekly inspections for a year and a certified mail returned now we are preparing it to sell, nice listing so I am desperate to escrow and close it..#2 occupied for a year already Owner told me since day one that a paper was missing and she has been there for 4 years by then(now 5)now today I just received and email from Title curative that this Child's father is David Stern and the Foreclosure sale never happen..................New Attorney assigned, yes by weekly inspection and updates Good luck with yours

I've got one that's about a year into eviction. The loan servicer apparantly stopped all evictions in mid 2010 due to the robo signing deal. I got a call in February they were considering restarting them, but nothing yet. Weekly occupancy checks with "dated" photo.

Got another with the eviction just last Monday (6/20). Property preservation company only moved some items, and house never trashed out. Get a listing agreement 2 days ago, check and still no trash out. I email everyone that there is trash, debris, furniture, food, household chemicals everywhere, maybe should wait until trash out is complete. You can smell the refrigerator without opening the door. They want it in MLS today.

Got 4 like that, tenant occupied. 2 in DC & 1 in MD...nothing I can do expect bi weekly occ checks. 1 in MD gutters are hanging, junk all in the yard. Tenants refused CFK months ago, living for free ever since. Just got a new one in VA in Old Town, she's a beauty! Occupied but it's only a 90 day wait for evictions. Got an email from their attorney, they are going to appeal the foreclosure. THEN I go snooping (google is your friend) and find out that the foreclosure happened in 2004! MY GOD...how does THAT happen?? These people have been keeping this one in court all this time and living for free. But of course, it's worth 2.5 mil.

Ouch. Since you have to start from scrach on the foreclosure you will be happy to hear that they are averageing over 600 days in FL right now. Also, the rocket docket defunds tomorrow so it will have to go through the regular court.
Good Luck to you.

Actually Fannie Mae does market and sell occupied properties. I have a tenant occupied one under contract right now and it is not the tenant purchasing it. But these tenants are on a month-to-month lease and agreed to it being marketed while they live there.

I have also sold one to the tenant who qualified to purchase it and wanted to purchase it.

As for my problem child REO. Assigned to me in September 2009, Fannie Mae, owner occupied. Second said first didn't notify them of the new delayed foreclosure date as they wanted to buy the first and refi it back to the owner. Second sued first lien. Fast forward to February 2011, Second lost, owner negotiated with foreclosure attorney for repurchase and put down money and we are waiting on Fannie Mae to approve repurchase.

Weekly drivebys for nearly two years and with the new Fannie Mae commission reduction on properties through outsourcers, I was looking at a 2% commission after two years of driving by. (Fortunately the property is on my way to the shopping mall and I would just fit it in on the way there or back.) I was really starting to get irritated with it because after all that time I would make even less on it if it went to market.

I should know any day now if Fannie Mae approves the repurchase. Either way, I lost out, sucks, but that's REO for you.

...............Party time..Thanks Grampa for the info,

I have my share of problem childrens too:

#1 Assigned Aug 2008 - almost 3 years in eviction and no end in sight. I've done at least 10 drive-by bpo's on it - lost count a while ago. Last I heard they're appealing to the Supreme Court (of the US - the state Supremes did not give them a hearing).

#2 Assigned Dec 2009 - Currently on hold with no active eviction in progress. But we still have to drive by every week and submit a weekly report with time and date stamped photos. And the odd thing, the lockout on this property was scheduled for the end of October 2010. Less than a week before the lockout, it was put on hold due to the robo-signing scandal and there it has stayed. Oh well, at least i've only had to do 1 BPO on it.

And then there's the ones that just aren't selling. I've never had so much trouble moving properties. Some are grossly overpriced, and that explains that, (Thank You, Mr. Appraiser) but I have several others that I believe are priced right and just aren't getting any traction at all. The thing that is telling is the lack of sign calls. To me that says that the market is really taking a dive, and that's the first time i've seen that in this area. Something to put into the next batch of MSR's, I guess.

Here's my favorite - and I have a several that I have had forever. I have a house that was arsoned prior to assignment. Worked with the arson department to get the arson report, then worked with my contractor to get it secured - he had to pull a 90 secure permit at $450 from the city. AMC was gonna donate it to the city - nope. Contractor has now pulled a second secure permit 180 days at $950. Now they are gonna tear it down but for the last 2 months, we have been trying to find out who can sign it for the owner since this is managed by an AMC, assigned to them by BOA but owned by Wells. Not only will no one sign it, the value of the lot by the time all is said and done? About $2000 but its gonna be a city lot - won't sell - and how in the world are they gonna pay me and another agent with a minimum commission of $2000? Well at least now I know the process of tearing down a house - a priceless education. (ha)