TIME TO STREAMLINE THE REO LISTINGS PROCESS
Foreclosures continue to break all records – with a million and a half homeowners in America facing the process in the first half of 2009. And predictions for the rest of the year are that more potential REO listings will enter the pipeline because of the increasing unemployment rate. One leading expert has deduced that the housing market may not hit bottom until 2013.
Although there are signs that Wall Street is back in the black, it will take time for Main Street to regain its economic health. All indications are pretty obvious that this recession was much deeper and more harmful than that of the early 1980’s – as a matter of fact, many of the numbers are more reflective of the Great Depression.
Yet, one hopeful sign is that sales of existing homes increased in June to their highest level since September of 2008. But that small light of hope comes from the fact that buyers are taking advantage of the price plunge that’s a result of the foreclosure crisis.
The fact is that banks and lenders are having a lot of trouble handling the REO listing overload. And figures show that over one million of the four million foreclosure properties are being listed as “distressed inventory” rather than going directly on the market as REO homes.
It’s not a “business as usual” time for REO sellers; that’s the reason I began ASREOS (the American Society of REO Specialists), as well as REO ResQ™, the nationwide property preservation franchise I recently began with my brother, Scott. I knew that this overflow of REO properties would require both an influx of new REO agents, brokers and contractors as well as new systems to “mainstream” the REO sales process.
As the bulk of REO Sellers are large financial institutions, it takes time for them to “turn around the boat” and change the way they do business. REO sales have always been a very small part of their business. But times have definitely changed, and foreclosures are on track to hit three million this year – with not much relief afforded to troubled homeowners by loan modification programs.
It’s time for REO Sellers to change up their systems to get more REO homes on the market and in a more timely manner. That will also speed up the process of stabilizing house prices and the entire real estate market, by stimulating home sales and keeping neighborhoods from turning into ghost towns.
There is not much to be gained by banks and lenders by waiting for the market to turn around. When economists are predicting that might not happen for four more years, then it’s better to put an REO home on the market now and get something back on the investment, rather than let unoccupied houses and properties continue to deteriorate until they are inhabitable.
At ASREOS, we’re committed to helping our membership gain the competitive edge needed to succeed in the burgeoning REO marketplace. The sooner we sell these REO homes, the better for everyone in the business.
Whether you’re an REO Seller or someone interested in working in the REO industry, please visit us at www.ASREOS.com for more about our organization and what we can do for you.
