REO LISTINGS: MORE FORECLOSURES, MORE REO SALES
The Newest Figures Mean Big News for REO Agents
After a minor lull in the REO market at the end of 2009, the distressed homes market came roaring back in 2010, with short sales and REO properties accounting for over 29% of all home sales this past January. That’s the biggest month for REO sales since July of 2009 and came close to breaking the record 32% racked up in January 2009, according to real estate analysts at First American CoreLogic (whose figures were backed up by another report from Clear Capital).
The report lists these U.S. cities at the top of the REO sales charts, with the following distressed sales percentages:
• San Jose, CA (24.6 percent)
• Houston, TX (40.5 percent)
• Las Vegas, NV (49.1 percent)
• Memphis, TN (43.3 percent)
• St. Louis, MO (39.6 percent)
These are amazing numbers. And they indicate that it’s still an incredible time to become an REO agent and learn how to get REO listings – as there is certainly no shortage of bank-owned properties on the market.
More importantly, there won’t be in the future.
Because, according to CNBC reporter Diana Olick, the next huge wave of foreclosures is on the way (you can read her article at http://www.cnbc.com/id/36195838). Despite all the loan modification programs and the Obama administration’s attempt to forestall foreclosures, sources predict a new monthly record for March.
The fact is that tens of thousands of loans are coming to foreclosure. And, because of the government simplifying the process, the actual foreclosures will happen twice as fast as in the past – so more REO properties will become available quicker. There are still about 5 million delinquent home loans out there that will be hitting the foreclosure stage soon.
The big banks are expecting foreclosures to really skyrocket near the end of 2010. One report states that Bank of America expects their current average monthly foreclosure rate increase by 600% in December, while JPMorgan Chase is officially predicting their portfolio of REO properties will be up by 50 to 100% at the end of the year.
A property becomes an REO listing after it forecloses and is repossessed by the bank. According to a March 15th article posted online at HousingWire.com, many in the real estate industry predict recovery can only come if there are enough trained REO agents available who know how to properly handle and sell these properties. These types of listings require knowledge of how to deal with REO sellers, who are generally large financial institutions, and how to process these unique transactions.
Those interested in making real money in the real estate industry should investigate how to become an REO agent and how to get REO listings. Agents with the expertise to do BPO’s (Broker Price Opinions) and handle REO homes will find there is a continuing thriving market with buyers lining up to get a bargain on a home.
One resource that both experienced and novice REO agents routinely turn to is ASREOS. ASREOS (the American Society of REO Specialists) is the first professional association for REO Agents created by REO professionals and contains numerous resources and tools to maximize REO opportunities and find REO listings – as well as the ability to interface with other REO Agents across the country in an exclusive forum. Find out more about ASREOS and what it has to offer at http://www.asreos.com.
