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Deutsche Bank is a big global bank with its headquarters located in Germany. They operate globally and have a major presence in United States. They are a major mortgage lending bank with diverse functions such as underwriting, funding and servicing.

There was a rapid rise and a much rapid fall in the value of real estate across the country over the last 8 years. Home owners who were strapped with debt they couldn’t service with their income either due to job losses or mortgage payment adjustments eventually defaulted in record numbers. Florida and California along with Nevada and Arizona that lead the nation in the boom also lead in the bust. Foreclosure auctions, short sales became buzzwords during the crisis.

All the properties on which the borrower continuously fails to make monthly payments commonly end up at a foreclosure auction. Not all properties attract bids or exceed the reserve price of the mortgage bank or lender. Such repossessed properties make up the Deutsche Bank REO Inventory. Real estate investors and buyers can profit by buying Deutsche Bank REO properties. Good returns can be expected on the properties purchased through REO listings as they offer scope for property market value appreciation in the future, along with rental income.

The composition of the Deutsche Bank REO property listings on their website is predominantly single-family homes, along with a mixture of condos, multi-unit residential properties like duplexes, triplexes and fourplexs.

Deutsche Bank Owned Homes are usually priced to sell as these repossessed properties are treated as non-performing assets on their books. Foreclosure auction expenses, along with the loss of interest income due to the defaulted payments end up lowering bank’s revenue and profits. Moreover, these REO homes incur expenses for Deutsche Bank due to the necessary and mandatory property upkeep costs, deutsche bank reo agent listing fees and taxes. This acts as a primary motivating factor for the lenders while considering purchase contracts.

Most of the Deutsche Bank REO properties are sold through their approved REO listing agents. These agents are assigned properties according to the localities they serve. To become a Deutsche Bank REO listing agent once should contact the Deutsche REO asset management department, if the process is handled internally or contact the contracted external asset manager handling the default servicing process. It’s often difficult to get in contact with the asset managers through email or the net. It is advisable to persistent, while redialing the department’s phone number.

Eventually, the success of a REO property investor primarily depends on their ability to locate and make offers on REO homes, before their competition acts. The long term appreciation afforded by real estate is historically proven to be expected and sound. This is even more valid when it comes to buying REO properties from major banks such as Deutsche Bank, as they offer built-in equity right at home purchase.

Banks retain the residential homes and commercial properties that fail to sell at a foreclosure auction.  A reserve price is usually the threshold that a bidder needs to beat in order to acquire a property at the auction. When a bid is below this reserve threshold, the sale of the property depends on mortgage lender’s discretion. They can either choose to sell off the property at the lower bid or repossess it. Such repossessed or repo properties are generally referred to as “Real Estate Owned” or “REO”. These properties are usually managed and handled either by an internal REO asset management department or outsourced to REO vendors who specialize in specific functions.

REO Asset Management Department at Deutsche Bank

Deutsche Bank outsources the entire process beginning with foreclosure proceedings on a borrower in default to selling the REO property, to external REO asset managers. So, the properties are not handled internally by Deutsche Bank REO department.

REO properties accrue expenses on an ongoing basis for the bank, till the time they manage to sell it either as an individual listing or part of any bulk reo package. After the foreclosure auction, the previous owner who defaulted on their mortgage is evicted. These foreclosed REO homes are usually in bad condition and they, more often than not, need to be cleaned and maintained while part of the bank’s REO inventory. Property taxes need to be paid for the duration of the bank’s ownership.

In addition, there are also expenses related to selling off the property through real estate listing agents.  Real estate investors and home buyers looking to acquire Deutsche Bank owned REO homes need to contact either Deutsche Bank asset manager or contact the Deutsche Bank approved reo listing agent, handling the property.

To signup as an approved REO listing agent, getting in contact with the Deutsche Bank asset management vendors is necessary. As many agents compete to list REO properties in their area, the ability to get in touch and work with REO asset managers is paramount to succeed as a real estate REO broker. Developing good contacts, through referrals or through persistence on the listed contact numbers, with Deutsche Bank REO asset department is one of the effective ways to get started. Other ancillary services such as broker price opinions (Agent BPOs) are also assigned to agents previously signed up with them.

When REO process is outsourced, the banks may engage multiple asset managers depending on the area where the foreclosed REO home is located. Sometimes, they outsource the REO default services to multiple vendors with in a same geographical area. So, it may be necessary to contact them all to be the preferred agent for Deutsche Bank REO listings in your service area.