As default and foreclosure volumes continue to climb nationwide, servicers are becoming increasingly exposed to REO properties and their associated costs. In the coming months, larger organizations familiar with asset management will see their REO portfolios fatten, while smaller shops that have been largely insulated from this function will need to react effectively to mounting REO inflows. Strong technology tools and vendor management policies - along with effective field services strategies and proactive REO management, marketing and disposition processes - are critical details that will help all organizations minimize losses.