Attention Massachusetts REO Realtors--Your Interests are Much Better Served by having separate REO counsel

Because it is probably easier to do, many REO servicers, in Massachsetts, and probably in other jurisdictons, use the attorneys who processed the foreclosure to assist the REO realtor in the real esate closing which follows once the Bank owns the foreclosed property. This seems to be the most efficient course of action since the law firm in question should have the correct information and personnel involved to provide for an easy transition.

In point of fact, it has been our experience, at Topkins & Bevans, the Massachusetts real estate law firm where I serve as Senior partner, that separation of the foreclosure function from the REO sales function makes perfect sense and can lead to faster, and more efficient REO closings. Here are some of the reasons:

1. When our firm is designated as REO closing agent, we have a single-purposed goal. We want to get the property in "title shape" so once the REO Realtor finds a Buyer, we can schedule a closing. This means, in effect, that we start "checking the checker". Our work is such that we shadow, and critique, the legal steps taken by the foreclosure attorney. We make sure proper notices have been given and proper documentation is in the file.

2. We check tax and condominium records, and determine the status of payments to entities who need to be satisfied in order to provide good title. We perform these services as if we were in the shoes of the attorney representing the Buyer. Our goal is to leave no stone unturned. We are not in a position where we need to defend our prior actions. All we are trying to do is to present a "clear to close" file from the Buyer's point of view, so there can be a swift and efficient REO closing.

3. Because we work with the same REO Realtors on a regular basis, we are able to anticipate closing patterns and anticipate closing needs. We attend REO closings in person. Many "combine" firms do not. In a word, they are just too busy. When we are in phsical attendance, we can often "snuff out" an apparent problem immediately. The REO Realtor and the Buyer appreciate that.

So, if any of you are experiencing inefficiencies in the use of "one-stop" shopping for foreclosure, and then REO, consider speaking with your REO servicer about splitting up the process, I can assure you that at Topkins & Bevans, the costs for using separate REO counsel are not greater than using the "combine shops"; often they are lower. And you will know that the firm in question has a single purpose, to close your REO sale as quickly, and effortlessly, as possible.