Isn’t an Asset Manager the person you use to help manage your money? Well, not in the foreclosure business.
An asset management company in the foreclosure business is a company that the owner of the foreclosed property hires to basically do all the work in selling a foreclosed asset. The asset management company is a subcontractor of the seller that takes care of different aspects of the foreclosure process. Some examples of items that the seller may not do themselves include:
- Eviction of prior owners – offering relocation assistance, court evictions
- Property management – snow plowing, lawn care, utilities, repairs
- Title work – researching title, fixing title defects, issuing title insurance, closing of sales
- Selling property – hiring the real estate agent, negotiating the sale, preparing and executing contracts
It is important to note that although a property may be owned by a bank seller, the individuals involved in the sale of the property may not work for the seller directly. They generally do have guidelines to follow from the seller on how they’d like tasks to be completed on their behalf. Some banks have multiple asset management companies that work on their behalf. Examples of bank sellers that utilize asset management companies include Fifth Third Bank, Bank of America, Wells Fargo and Chase.
Here are links to some of the top asset management companies that may be managing a property that you are interested in purchasing:
It is important to note that many asset management companies are paid at least a portion of their fee out of the listing agent’s commission. There is much competition in this business and agents work to keep these “middle-men” happy. Although all parties generally want to assist in getting a sale completed, it is important to note that the asset management company works for the seller and adds an additional layer in the sale. Additional layers can add complexity and delays in the process.