“I feel like our country would be in a lot better shape if we were keeping people in their houses.” That statement may sound a bit odd coming from the president and principal broker of REO Services for Crye-Leike Realtors in East Tennessee, Cindy Walker.
But Walker’s real estate journey has followed many paths including a position in the Mortgage Servicing Industry with a New Mexico company, where she cut foreclosures by 50 percent in two months, to her current position selling REO, or Real Estate Owned, properties. Walker primarily works with banks, Fannie Mae and other lending institutions to find buyers for homes that have been through the foreclosure process. She currently has about 85 homes in inventory. Purchasing a REO property is very similar to purchasing any home, according to Walker. “Most people think it’s more complicated to buy an REO property, but it’s not. You’re just dealing with a lender to get your loan.”
Typically, the lending institution orders an appraisal and has Walker do a broker price opinion. From these two pieces of information, the bank sets the selling price and the home is listed in the regular MLS. Walker does an inspection of every home and reports any repairs that are needed to the lender. “Fannie Mae is actually doing a lot of repairs right now, which is really good, especially for the first time homebuyer,” she says. When the purchase is completed, the new owner receives clear title to the property.
A change in the REO process that Walker believes is very positive has to do with the exposure a property gets. “I think it is really good now that an investor can not come in and buy a property unless it has been on the market for 15 days,” she says. “They [the lenders] want the actual homeowner that’s going to live in that house to have the first chance to make the purchase.” Like a lot of Realtors, Walker’s favorite part of the business is seeing the buyer’s happiness, especially when they purchase their first home. “I love first time homebuyers,” she says. Even though the majority of her sales come from REO properties, Walker still would like to see as many people as possible avoid foreclosure.
“If I could convince them to pay me to keep people in their houses, that’s what I would be doing,” she says. Walker believes keeping an ongoing line of communication with the lender would benefit many of those facing foreclosure. She says, “People should be talking to their lenders. Don’t avoid those phone calls. Homeowners think the bank wants their house but they don’t; they want to be able to work with them.” If foreclosure is the final result, homeowners should, according to Walker, take advantage of programs like Cash for Keys.
“I will pay the homeowner $2,000 to move within two weeks if the home is left in good condition. It has to be broom-swept and all personal property removed. Then I will give them a check and they sign a W-9.” Walker moved to Chattanooga from Colorado, where her son, daughter-in-law, grandson, Christian, and granddaughter, Lily, still live. “Chattanooga is where I plan to stay, although it’s really hard having my son and grandkids in Colorado,” she says. Walker has been a licensed real estate agent and broker since 1987, the last six years with Crye-Leike. “When I first came to Tennessee, I started looking around to see whose signs were out there, who had the best reputation, and that’s exactly why I picked them,” she says.
After joining the firm she received an offer she couldn’t refuse. “Mr. [Harold] Crye called and asked if I wanted to run their REO division, and so I decided that would be a good way to get to know the area more.” The REO part of the real estate business is challenging yet rewarding, according to Walker. However, keeping more people in their homes is what she would like to see. Walker says, “I would like to see more people helping their neighbors, and again, it goes back to getting people in their houses because if we help someone in trouble every once in awhile, my goodness, how much good that could do?”