Chase has had a substantial amount of mortgages that went into default, resulting in an overstock of properties reverting back to the bank. Chase REO Asset Management is now undertaking the massive task of getting these properties listed and sold. This overstock of repossessed properties, along with the ability for some investors to purchase bank owned properties in bulk, sets the stage for pricing breaks sometimes as much as 50% under market value.
In 2008, Chase took over Washington Mutual, placing it in the circle of the largest banks of America. When real estate was booming, Washington Mutual was actively lending. Then the real estate bubble burst, and property prices plummeted, Washington Mutual was hit hard from its high number of mortgages.
With Chase bank’s REO property, combined with the mortgages that Chase acquired from Washington Mutual that either have gone into or are in the process of going into foreclosure has created a huge list of REO Properties that Chase needs to sell. Chase bank has an entire division dedicated to handle asset management for their foreclosed properties.
There are certain areas of the country that were affected worse by the bursting of the real estate bubble, with the 3 areas that were most impacted by foreclosure being Florida, Nevada, and California. There is inventory of foreclosed property listed all over the country that has to be liquidated though, not just in the 3 states listed above. The foreclosures in America are already in the millions, and continue to grow with new foreclosed properties added to inventory every day.
With the sheer numbers of properties in foreclosure that need to be sold, along with the fact that they are located all over the country, many banks, including Chase has created a website listing their properties. The ChasePropertywebsite is very helpful because it displays all the information that people need who are interested in Chase properties. The Chase property website offers the ability to search through their properties, with filtering by zip code, state and city for convenience. Details about the REOagent handling the Chase bank owned property, plus other details and information can also be found on the Chase property website.
These developments in the real estate market have opened up opportunities for investors to add to their portfolio. People also have opportunities to become homeowners, with residential housing sometimes being more affordable when purchased as an REO.
The first thing that happens when a property is foreclosed on, is it goes to the foreclosure auction. Any of the foreclosed properties that did not sell during the foreclosure auction, go back to the bank to be put up for sale. A property can fail to sell at the foreclosure auction, because either it did not get any bids, or the bids the foreclosed property did receive were not enough to reach the reserve price that was set by the bank before the auction.
Sometimes Chase bank will sell an REO property at the best price they receive, because of the costs associated with maintenance, and taxes on the property, plus additional expenses that the bank would have to absorbed. Some single family residential REO properties have sold for as much as 30% under the value of the current market. Realtors handle the majority of the Chase bank Reo properties, and must be a verified vendor with the Chase bank REO Department by Chase REO Asset Management personnel.