The title alone, however, will tell you that we just had yet another year in which the number of foreclosures once again shattered previous records.  And it looks like 2011 will continue the trend, according to the experts at RealtyTrac.com.

With the incredible number of REOs on the market – there is currently an estimated 3 year supply already on hand – it’s time for REO sellers, agents and brokers to think beyond the simple discounted price of these properties as the primary sales tool and find other ways to make their REO listings stand out in the marketplace for a faster sell.  Let’s face it – the competition is going to be tough.

Certainly one proven way to spike REO sales is by contracting for a higher level of property preservation and doing renovations to REO homes.  For normal homebuyers who are looking for a good value, looking at a rehabbed REO home, as opposed to one they would have to renovate themselves, can make all the difference.

A study by Field Asset Services shows that renovated REOs spend only 69 days on the market, as opposed to 222 days for minimally maintained REO properties.  That’s a five month difference – an eternity in real estate and a big motivator for any REO seller.

That means high-grade property preservation should be big business this year.   Check out our sister site at www.REOResQ.com to find out more about how to get into the lucrative foreclosure trash out business and, of course, please stop by www.ASREOS.com regularly to find out the latest on the big REO listings boom.

Here’s hoping your 2011 will be a successful one.

As predicted by numerous housing experts, 2010 was another record-breaker in terms of numbers of foreclosures and bank REOs.   For the first time since foreclosure numbers began to be recorded, over a million homes were converted to REO properties, despite the slowdown in foreclosure activity in the final quarter of 2010, due to the discovery of invalid bank foreclosure processing.

Foreclosure filings, which include default notices, scheduled auctions and bank repossessions, hit 2.87 million U.S. homes in 2010, up 2 percent from 2009, or one out of every 45 homes in America.  “If not for the robo-signing controversy, which broke in early October, the total could have easily surpassed 3 million,” said James Saccacio, RealtyTrac CEO.

The five states that accounted for over half of all the foreclosure activity were California, Florida, Arizona, Illinois and Michigan.  Nevada, however, continued to have the country’s highest rate of foreclosures for the fourth year in a row, with over 9 percent of all homes in the state subject to foreclosure filings.

The overwhelming foreclosure numbers began to skyrocket four years ago and, since then, approximately 1 out of every 10 American homes, 5 million properties in all, has been subject to a foreclosure filing.

As for 2011, more record-breaking numbers may be on the way.  “Early indications in January were that this robo-signing related delay will be over by the end of first quarter if not sooner,” commented RealtyTrac’s Rick Sharga. “I think we’re going to see a significant spike in foreclosure activity early in 2011, and that will contribute in part to 2011 being a record year.”

Estimate are that as many as 250,000 foreclosures that would have happened in 2010 will now happen this year and add to an already-huge pool of bank REO properties.  Currently, the four biggest lenders have in their possession approximately $7 billion worth of REO homes, while Fannie Mae and Freddie Mac have a combined $24 billion pool of REOs.   This means there is at least a 3 year supply of REO properties in the pipeline.  REO sales already comprise roughly a third of all real estate activity.

The U.S. government is considering a number of incentive programs to help sell the massive amount of REO properties that are and will be shortly on the market.  The loan modification programs that the Obama Administration hoped would stem the foreclosure numbers have so far been ineffective.  The focus now is enabling the sale of the REO homes and helping the housing market to recover.

For those who want to know more about how to become an REO agent and how to get REO listings, one important resource is ASREOS (the American Society of REO Specialists).  ASREOS is the first professional association for REO agents created by REO professionals and contains numerous 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

One of the solutions for homeowners looking for a graceful exit from a property they can no longer afford is a short sale.  That involves selling their home for less than the value of the mortgage of the property.  Obviously, the lender needs to approve of this transaction.

And that’s where the catch comes into play, as I detail in my new article, “Why Are Lenders Denying Short Sales?”. Many lenders are denying short sale deals – and then, in many cases, are putting these properties back on the market for a lower amount than what was offered by the potential short sale buyer, who has long since vanished from the scene.

So why would a lender nix a short sale – and then go through the expense of foreclosure and converting the home to an REO property, just to end up trying to sell it for less?

According to the article I cited from “The Boston Globe” from December of last year, the lenders are concerned about “flopping” fraud, in which an artificially low property value is put on a home.  The home is then sold to an investor, who immediately turns around and sells it for more.   The lenders complain they are losing over $300 million a year – and this kind of fraud plagues one in 53 short sales.

There’s an old saying about being penny-wise and pound-foolish, and I think this is the case here.  The lenders seem to be admitting that 52 out of 53 times, the short sale is an honest transaction, a transaction that would seem to benefit both homeowner and mortgage holder.

In a climate where the banks are stuck with hundreds of billions of dollars worth of REO properties, that should be worth something.   The housing market is still stuck deep in the hole.  Let’s keep the short sales going to help dig it out.

On that note, I hope you’ll stay in touch with the latest news at www.ASREOS.com, where we will continue to work hard to help REO agents both new and experienced find the best opportunities in the New Year.

In this time of record-breaking foreclosures, many Americans, battered by the recession, find themselves without many alternatives to losing their house.  One such alternative, the short sale, in which the homeowner is allowed to sell their home below the value of their mortgage, was one way that someone could get “out from under” a home loan they could no longer afford.

However, the biggest impediment to a successful short sale is often the lender who holds the mortgage.  Because there is no short sale process set in stone, the approval process is inconsistent, unpredictable and all-too-frequently blocked, even when it’s in the lender’s best interests.

In a recent article, “The Boston Globe” detailed the ordeal of Christopher and Linda Robbins, who were ecstatic that they had managed to find a buyer for their condominium which they could no longer afford.  That joy turned to sorrow and disappointment when they learned their mortgage holder rejected the deal.  The reason?  The condo was worth more than what the buyer was willing to pay.

Instead, the parents of two small children went through the painful foreclosure process.  A few weeks later, the lender put the home back on the market – at a price of $7000 less than what the short sale buyer had offered them.  Now the family has moved out and the condo remains empty, with no buyer in sight.

Why are lenders denying such transactions, when clearly, it’s financially the best move for them as well as the homeowners?  These kinds of foreclosures are frequently sold at auction for less than the mortgage holder would have made in the proposed short sale.

“The irrationality in which these applications can be dealt with is absurd,’’ commented Thomas J. Percy, managing partner of a law firm that represents sellers and lenders in short sales, to the Globe. “You can get vastly different answers depending on, among other things, which bank negotiator you end up with.’’

Lenders say the reason they turn down many short sales is because they are concerned about fraud.  Around one in 50 transactions become piled up with difficulties.  Frequently, problems occur because an investor hires a real estate agent to assess the property for less than its value.   That investor then buys the property in a short sale and immediately turns around and sells it for a higher price, in a process known as flopping.

The banks lose around $300 million a year because of this kind of fraud.  The question, however, is how much are they losing on the other honest transactions that they’re stopping in their tracks – transactions that, by the lenders’ own admission, make up the overwhelming number of short sales?

In a market where lenders are holding hundreds of billions of dollars of REO properties, this is a question they need to be asking themselves.

For those who want to know more about how to become an REO agent and how to get REO listings, one important resource is ASREOS (the American Society of REO Specialists).  ASREOS is the first professional association for REO agents created by REO professionals and contains numerous 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.

Frank Patrick, Property Preservation and Trash Out Specialist, recently wrote about the tough time that REO professionals experienced at the end of 2010, and how 2011 could be much better.

Scottsdale, Ariz. – January 11, 2011 – Frank Patrick, foreclosure trash-out and reo specialist, recently wrote a blog discussing how the recent robo-signing scandal caused delays for those looking to buy REO Homes.  “Foreclosures have been delayed because of the “robo-signing” scandal in which legal filings were processed by lending servicing companies without the necessary care or proper paperwork.   That put a damper on those wanting to buy REO homes, as they had no choice but to be concerned whether the foreclosures in question might be overturned,” writes Frank Patrick.

In the blog published on http://www.ASREOS.com, called “ASREOS Blog: Looking Forward To 2011,” Frank explains, “The end of this temporary REO slowdown is near. Elizabeth Duke, Governor of the Federal Reserve, is projecting over two million more foreclosures both for 2011 and for 2012.  That means that, one way or the other, the foreclosure delays will have to be dealt with – and done away with.”

“Common sense dictates that the roadblocks will have to be removed soon – letting loose a new giant wave of REO activity that will be swamping us all.   So rest up now, all you REO pros, and get ready for a new year with a whole new start,” wrote Frank.  “Both veteran and newbie REO professionals will find a lot of value at ASREOS (the American Society of REO Specialists), including important inside info on how to get REO listings and how to become a top-producing REO agent.”

The entire article can be found at http://www.asreos.com/blog/asreos-blog-looking-forward-to-2011.php

Frank Patrick is the founder of The American Society of REO Specialists, or ASREOS.  ASREOS is a national trade association founded in 2008 to assist ASREOS members in making contact with banks, lenders, asset management companies and property preservation companies that need competent REO professionals to service their REO properties.  ASREOS also enables members to network in a professional and supportive environment and offers ongoing dynamic, cutting-edge REO resources to help members grow their business and their own personal performance in the REO marketplace.  ASREOS also provides a comprehensive directory of REO professionals for banks, lenders, asset management companies and property preservation companies.

The online home of ASREOS (http://www.asreos.com), the American Society of REO Specialists, is growing in leaps and bounds to help REO professionals gain a competitive edge and get access to these lucrative listings.  ASREOS is the first REO trade association founded by REO experts, and it features advice from top REO agents, access to an exclusive database of over 130 REO sellers, and profiles of its members in an online searchable directory of REO vendors that banks, lenders and asset managers can utilize when looking for local agents to list and sell their REO properties.  Find out more at www.ASREOS.com.

About Frank Patrick:

Frank Patrick began his real estate career in 2000 after a 12-year stint in corporate America as a sales manager.  As a new real estate agent Frank knew that he wanted to find a niche within the real estate industry.  After months of research Frank decided to specialize in REO, an acronym for bank owned foreclosed homes.  Frank quickly became one of the top REO agents in the nation averaging over 100 transactions per year for the last 8 years.  In 2007 Frank’s production soared to over 214 sales.

In 2004 Frank and his brother Scott Patrick started a property preservation company to offer maintenance and repair services to banks with foreclosed homes.  Frank’s solid understanding of the REO industry and Scott’s 20+ years in the construction business was a recipe for success.  This year their property preservation business is on track to gross over one million dollars in revenue.  Today Frank manages his REO Real Estate Brokerage, REO Renegades an REO agent training business, his trade association The American Society of REO Specialists and is developing a national Franchise Property Preservation company, REO ResQ.

For more information please visit http://www.ASREOS.com ]]> http://www.asreos.com/news/reo-foreclosure-specialist-frank-patrick-on-the-importance-of-dealing-with-foreclosure-delays-in-2011.php/feed 0 http://www.asreos.com/news/foreclosure-trash-out-specialist-frank-patrick-discusses-the-2011-foreclosure-forecast.php http://www.asreos.com/news/foreclosure-trash-out-specialist-frank-patrick-discusses-the-2011-foreclosure-forecast.php#comments Sat, 08 Jan 2011 02:36:29 +0000 admin http://www.asreos.com/?p=711

Frank Patrick, Property Preservation and REO Specialist, recently discussed the 2011 REO projections revealed to congress by the Federal Reserve Governor.

Scottsdale, Ariz. – January 7, 2011 – Frank Patrick, foreclosure trash-out and reo specialist, recently wrote an article explaining the recent report by the Federal Reserve that laid out it’s 2011 predictions for foreclosure filings.  The report stated that the Federal Reserve expects approximately 4.25 million more foreclosure filings in the next two years, with two million plus expected in 2011 as well as in 2012, similar to the record amount of foreclosures that occurred during this year.

In the article published on http://www.ASREOS.com, called “REO Listings: 2011 Foreclosure Forecast Predicts Two Million More REOs,” Frank explains, “The pace of both foreclosures and REO sales has slowed in the final quarter of 2010, due to uncertainty over lenders’ problematic processing of foreclosures.  REO buyers have been reluctant to invest in distressed properties until these legal troubles have been resolved.”

“A current REO inventory of around two million homes as well as the more than four million that are expected to come through the pipeline in the months to come, there is little doubt that 2011 will see a renewed boom both in foreclosures and in REO sales, due to continuing economic pressures – as experts see little chance of a housing recovery unless REO properties are promptly processed and sold,” Frank continued.

The entire article can be found at http://www.asreos.com/articles/reo-listings-2011-foreclosure-forecast-predicts-two-million-more-reos.php

Frank Patrick is the founder of The American Society of REO Specialists, or ASREOS.  ASREOS is a national trade association founded in 2008 to assist ASREOS members in making contact with banks, lenders, asset management companies and property preservation companies that need competent REO professionals to service their REO properties.  ASREOS also enables members to network in a professional and supportive environment and offers ongoing dynamic, cutting-edge REO resources to help members grow their business and their own personal performance in the REO marketplace.  ASREOS also provides a comprehensive directory of REO professionals for banks, lenders, asset management companies and property preservation companies.

The online home of ASREOS (http://www.asreos.com), the American Society of REO Specialists, is growing in leaps and bounds to help REO professionals gain a competitive edge and get access to these lucrative listings.  ASREOS is the first REO trade association founded by REO experts, and it features advice from top REO agents, access to an exclusive database of over 130 REO sellers, and profiles of its members in an online searchable directory of REO vendors that banks, lenders and asset managers can utilize when looking for local agents to list and sell their REO properties.  Find out more at www.ASREOS.com.

About Frank Patrick:

Frank Patrick began his real estate career in 2000 after a 12-year stint in corporate America as a sales manager.  As a new real estate agent Frank knew that he wanted to find a niche within the real estate industry.  After months of research Frank decided to specialize in REO, an acronym for bank owned foreclosed homes.  Frank quickly became one of the top REO agents in the nation averaging over 100 transactions per year for the last 8 years.  In 2007 Frank’s production soared to over 214 sales.

In 2004 Frank and his brother Scott Patrick started a property preservation company to offer maintenance and repair services to banks with foreclosed homes.  Frank’s solid understanding of the REO industry and Scott’s 20+ years in the construction business was a recipe for success.  This year their property preservation business is on track to gross over one million dollars in revenue.  Today Frank manages his REO Real Estate Brokerage, REO Renegades an REO agent training business, his trade association The American Society of REO Specialists and is developing a national Franchise Property Preservation company, REO ResQ.

For more information please visit http://www.ASREOS.com ]]> http://www.asreos.com/news/foreclosure-trash-out-specialist-frank-patrick-discusses-the-2011-foreclosure-forecast.php/feed 0 http://www.asreos.com/blog/frank-patricks-asreos-blog-the-new-year-and-the-new-reo-opportunity.php http://www.asreos.com/blog/frank-patricks-asreos-blog-the-new-year-and-the-new-reo-opportunity.php#comments Tue, 28 Dec 2010 14:03:25 +0000 admin http://www.asreos.com/?p=704 The foreclosure moratorium is over, the lenders are in the final stages of straightening out their documentation problems and the slowdown we experienced over the last two months is over.

2011 will likely be the biggest year in history for those of us who specialize in listing and selling REO’s.   And 2010 was already an incredible year.

Agents who have adapted to this changing real estate market – and the huge percentage of it that REOs now occupy – have thrived.  With my experience in REO listings (which predates the housing crash), I was in a fortunate and unique place to take advantage of this massive shift, which gave me more opportunities that I had time to explore, many of them multi-million dollar opportunities.

I’ve also been fortunate enough to be able to share my valuable experience and expertise with those who either needed to adjust from conventional real estate agent transactions or those needing a new career due to the recession.  It’s why I began ASREOS, the American Society for REO Specialists, in order to help everyone in the REO community learn and grow along with the developing REO market.

As I write in my new article, “More Americans Interested in Buying REO Properties,” experts are using words like “tidal wave” to describe what’s going to happen with foreclosures in 2011.  That means millions more REO properties that are going to need expert hands to market and sell.

Changes will be coming fast and furious next year, so I urge you, if you haven’t already, to join our ever-growing membership at ASREOS to keep up to date with the incredible opportunities that will continue to come our way.   Visit us at www.ASREOS.com to find out more.

In the meantime, have a wonderful holiday season with your loved ones.  My best to you and yours.

A new survey by RealtyTrac and Trulia, two online real estate powerhouses reveals that more and more Americans are realizing the benefits of buying REO properties.

49 percent of those surveyed said they were likely to consider purchasing a foreclosure, up from 45% last May.  Two-thirds of those expected to receive a discount of about 30% off the normal price of such a home – which is in line with the average 32% lower purchase price of a foreclosure currently on the market, according to RealtyTrac.

The survey, done in conjunction with Harris Interactive, one of the leading custom market research companies, was conducted in November of 2010.

The uptick demonstrates a growing acceptance of REO properties as a viable alternative by mainstream home buyers, which is good news for REO agents, brokers and other REO professionals.

Though there’s been a slowdown in foreclosures in the latter part of 2010, due to the foreclosure documentation problems the major lenders have been experiencing, as well as the traditional holiday season moratorium on foreclosures, most real estate analysts project that the first quarter of 2011will be an extremely busy one when it comes to REO listings.

That’s because the shadow inventory of foreclosures is again straining at the seams, because of the aforementioned slowdown.   “Even with this big drop in November we do have a continuing building inventory of properties in foreclosure or REO,” said Daren Blomquist, managing editor of the RealtyTrac reports. “We’re estimating those properties plus delinquencies to equal 3 million to 4 million homes waiting to hit the market.”

That will potentially create what “The Boston Globe” recently predicted would be a new “tidal wave” of foreclosures in 2011.  “The Wall Street Journal,” in an article from December 12^th, also sees a big increase on the horizon with the New Year.

“Next year could very well be a peak year for foreclosures”, commented Rick Sharga, a senior vice president at RealtyTrac, an online marketplace for foreclosure properties. “The market is expected to tally about 1.2 million bank repossessions in 2010, up from 900,000 in 2009.  We expect we will top both of those numbers in 2011.”

Adding to the shadow inventory of REO properties will be new foreclosures occurring as a result of continued high unemployment, as well as upcoming interest-rate resets on adjustable-rate mortgages that will increase the monthly payments for some homeowners.    Loan modification programs for homeowners that are currently behind also don’t seem to be working for the majority.

Between the increase in the number of REO listings and the growing willingness on the part of potential homebuyers to consider buying REO homes, 2011 could be the biggest year for REO sales yet.

For those who want to know more about how to become an REO agent and how to get REO listings, one important resource is ASREOS (the American Society of REO Specialists).  ASREOS is the first professional association for REO agents created by REO professionals and contains numerous 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.

Foreclosures have been delayed because of the “robo-signing” scandal in which legal filings were processed by lending servicing companies without the necessary care or proper paperwork.   That put a damper on those wanting to buy REO homes, as they had no choice but to be concerned whether the foreclosures in question might be overturned.

But the end of this temporary REO slowdown is near.  As I noted in my new article, “2011 Foreclosure Forecast Predicts Two Million More REOs,” Elizabeth Duke, Governor of the Federal Reserve, is projecting over two million more foreclosures both for 2011 and for 2012.

That means that, one way or the other, the foreclosure delays will have to be dealt with – and done away with.

There are simply too many homes already out there – and too many homes about to come on the REO market – for the process to be halted for long.  Duke and the overwhelming majority of economists and real estate professionals realize how disastrous that would be for the housing market and the overall economy.

Common sense dictates that the roadblocks will have to be removed soon – letting loose a new giant wave of REO activity that will be swamping us all.   So rest up now, all you REO pros, and get ready for a new year with a whole new start.

And don’t forget to check in regularly at www.ASREOS.com to get the latest news and swap the latest inside information with other ASREOS members.

What?  You’re not an ASREOS member yet?  Then you should be!  Both veteran and newbie REO professionals will find a lot of value at ASREOS (which stands for the American Society of REO Specialists, by the way), including important inside info on how to get REO listings and how to become a top-producing REO agent.

In the meantime, have a great holiday season – and an incredibly profitable 2011!

As 2010 comes to a close, the Federal Reserve has revealed that it expects approximately 4.25 million more foreclosure filings in the next two years, with two million plus expected in 2011 as well as in 2012, similar to the record amount of foreclosures that occurred during this year.

Elizabeth Duke, the Reserve Governor, reported these projections to a congressional subcommittee in late November.  She also reported that about five million mortgages are currently 90 days past due or more.

The pace of both foreclosures and REO sales has slowed in the final quarter of 2010, due to uncertainty over lenders’ problematic processing of foreclosures.  REO buyers have been reluctant to invest in distressed properties until these legal troubles have been resolved.

“Financial institutions face a number of risks if inadequate controls result in faulty foreclosure documents or failure to follow legal procedures,” Duke said. “We are gathering information to ensure that the institutions we supervise have adequately assessed these risks and have accounted for them properly.”

In addition, Fannie Mae and Freddie Mac, as well as other lenders, have suspended foreclosures through the end of the year due to the holidays as is the yearly tradition.

However, with a current REO inventory of around two million homes as well as the more than four million that are expected to come through the pipeline in the months to come, there is little doubt that 2011 will see a renewed boom both in foreclosures and in REO sales, due to continuing economic pressures – as experts see little chance of a housing recovery unless REO properties are promptly processed and sold.

“In the end, an overhang of homes awaiting foreclosure is unhealthy for the housing market and can delay its recovery, as well as that of the broader economy,” added Duke, indicating that the Federal government will continue to push for a swift solution so foreclosures and the REO marketplace can get back up to speed.

Foreclosure investor Rich Meyer told The Miami Herald that he expects a sharp spike in REO activity in early 2010.  “There’s a backlog of future filings,” Meyer said. “Once the litigation is settled, it’s going to be a wave.”

To illustrate how overwhelmed the system has been by the sheer number of mortgages gone bad, the average amount of time a homeowner is late with loan payments before facing foreclosure is 492 days or around 16 months.

All experts agree – REO homes will continue to be a dominate force in real estate sales for years to come.

For those who want to know more about how to become an REO agent and how to get REO listings, one important resource is ASREOS (the American Society of REO Specialists).  ASREOS is the first professional association for REO agents created by REO professionals and contains numerous 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.