Escrow of the West, a Beverly Hills-based independent escrow company, has recently expanded its REO closing division due to an influx in deals. Galit Ofengart, the owner of Escrow of the West and Senior Escrow Officer, said the expansion was necessary due to the importance of real estate owned transactions in today's economy.

"Currently, a large portion of our business is in the REO and short sale markets and I project it will remain so for another 3 to 5 years," Ofengart said. "As these transactions require superior knowledge and heightened dedication, we want to maintain our high standards of customer service and expand our team."

As REO transactions continue to increase, Escrow of the West hopes to continue gaining ground as the premier REO transaction firm. Ofengart said that her company's experience in distressed, sensitive transactions makes the difference for successful REO closings for lenders and investors alike on a daily basis. Thus, her company is expanding while other escrow offices are closing down.

The current foreclosure crisis has led to a rapid growth of REO properties. These properties are owned by banks or lenders who are highly motivated to seek a quick, smooth selling transaction in order to mitigate the added costs associated with maintaining them on their books. This sets up a favorable environment for investors and buyers who are searching for a good deal. REO transactions are unique in the sense that the seller is a corporate lending institution, dealing with a huge volume of properties. Since the carrying costs are eating away at their bottom line, lenders want to get rid of these properties as quickly and efficiently as possible, attempting to maximize recovery. The escrow holder cannot control the seller's actions and timelines, and shall comply with all instructions and contingencies per the purchase contract, making it a more complicated transaction.

With the expansion of their REO closing division, Escrow of the West aims to serve as a reliable partner in lender closings.

"It is a tough market right now," Ofengart added. "Lenders want whatever peace of mind they can get and that is why we are growing the business. Our commitment to excellence requires it."