NO STOPPING THE RUSH OF REO LISTINGS

You can’t stop an avalanche. That’s pretty much common sense. There’s too much stuff coming down the mountain at once. How could you stop it?

You can’t stop a tsunami. A giant wave that’s as tall as a ten story building? Good luck.

Another thing none of us can stop? The overwhelming number of REO properties that will continue to be heading our way.

In my new article, “The Pig in the Python,” I lay out the latest facts and figures about foreclosures and the shadow inventory of REO homes that’s finally making its way through the real estate pipeline.

Government programs and loan modification attempts have been mostly forestalling the inevitable – and time has run out. The first quarter of 2010 contained a record number of foreclosures and experts expect the end of 2010 to boost those figures even higher.

I quoted real estate consultant Ivy Zelman in the article about the REO shadow inventory being the “pig in the python” that no one wants to really deal with. Zelman also made a number of other pertinent points – mainly that, by repeatedly trying to keep homeowners in houses they can no longer afford, they’re pushing the limits of the FHA for low-income borrowers, touting historically positive affordability.

Zelman also asked, “What exactly is so wrong with renting?”

For many homeowners struggling to keep up with mortgages with ever-growing payments, they’re fighting a battle they can’t win – when they might be better off abandoning ship, renting and saving money for another home down the line. They’re being financially oppressed by mortgages that keep them with nothing in their bank accounts.

With distressed sales (REO homes and short sales) accounting for half of all home sales in March, it’s clear that REO properties could sell fast and furious if they were allowed to make it to market. Why not actually help these homeowners and the real estate market to deal with reality rather than perpetuating a situation that helps no one?

Let’s stop putting time, money and effort into trying to stop an avalanche. Instead, let’s just focus on cleaning up after it’s done.

Please remember to stop by www.ASREOS.com for more information on how to get REO listings if you’re already an REO agent or broker, and how to become an REO agent if you want to enter this lucrative field.