Category: REO Articles
OK this is a very good sign for those of you who have been waiting for that bubble to burst. I am never one to count my chickens before they hatch, however, these are real numbers based on actual filings turned over to foreclosure ATTORNEYS, so my bet is that we will be feasting heavily soon! The report being based on attorney filings is a KEY point, as usually the reports we see are speculations based on numbers of mortgage holders in "default". Lately a lot of those "default" statistics have not turned into REO but were instead subjects of short ales and loan mods and those speculations of huge REO numbers have proven to be false. These current stats represent mortgages that were turned over for foreclosure actual proceedings and will indeed result in REO property increases. So be sure that you are establishing those relationships and reaching out to every Asset Manager that you can. REO Expo is in June. Get registered for that as well. We could be in for a nice wave of business.
Read the article here.
So these mystical words have been whispered and rumored about for more than a year now, yet very few seem to understand their true meaning. Is "Shadow Inventory" some sort of hidden surplus of unwanted homes lurking in the deepest corners of the REO world ready to swoop in and cast a heavy dark cloud over the real estate market? Will it instantly suck home prices across the nation into the bowels of no-equity hell? Much like the "Double Rainbow " guy, agents everywhere are asking "What does it mean"?....
Many many many times I have warned REO agents to avoid the fatal mistake(s) of becoming stagnant, complacent and/or just plain lazy. Yet, without fail, at least once a day I get whining from agents who can't wrap their brains around the fact that they are making ZERO progress with their "less than zero" efforts. Yup, I said LESS than zero. And that's because I consider "doing what everyone else is doing" to be a less than zero effort to do anything that would put you measurably ahead of the next guy. Ugh...makes me SICK to my stomach just thinking about this type of pathetic lack of fortitude as I write this post.
Well folks, there's a few telltale signs that the REO climate is about to change.....yep, the clouds are thickening, the skies are grey and the wind is whirling around like a funnel cloud ready to whip out debris across the countryside! The REO storm appears to be right upon us. So hold on to your hats!
Ok, here's what I, and a few of my most trusted colleagues, both brokers and other REO industry "insiders" have been observing:
If you haven't already taken advantage of "Uncensored REO Secrets" then invest in your copy today. It's the simplest and easiest way to discover how to jump into the business of selling bank-owned homes. As a result of the most common questions that I get from coaching members and other aspiring REO brokers that I frequently meet, I put this quick little "blueprint" together, that outlines the most critical steps that you'll need to take, and the most deadly pitfalls that you MUST avoid, in order to start getting assignments from banks and asset management companies.
The more you truly understand the big banks, the easier it becomes to understand why other financial institutions MUST follow their lead. There's such a HUGE difference in the way that many banks, financial institutions and investors who own REO properties operate when it comes to disposing of assets. There's those of them who are very content to simply assess the "as-is" values and to put them right up on the market, at a price that's likely to "blow them out" to investors. There's those who do the short list of "necessary" repairs and hope to gain a somewhat higher sales price. And then there's the big banks, the benchmarks of the industry.
I frequently discuss different strategies, that REO brokers can use, to get REO listings, on REO Rockstars calls. And because we're dead smack at the onset of home selling season, I thought I'd take just a quick minute, to share 3 of the best ways to get bank owned properties (even though some of you THICK HEADED agents may have been too lazy to sit in on my last one hour FREE REO coaching call 
. So here's the "lazy man's" way to cut in line and get your pipeline of foreclosure listings filled right up.
So, I got caught with my pants down and frankly I can't believe it. Just goes to show you that even when we're on top of our game there's someone who'll sneak something by you. My biggest nightmare...a bookkeeper who "took" me. Now I am NOT saying that she stole from me but I am saying that the books are a mess and I'm quite suspicious. Worse yet, she apparently has copied my QuickBooks file (with all of my data) onto a flash drive, took it with her and then deleted my master file from the server.....yikes!
I get these questions daily from REO Rockstars subscribers and from foreclosure brokers that I am coaching; "What is happening with bank owned properties?" "Why are the inventory levels fluctuating so much now?" "What can I do to keep from going under?" My explanation is this: The government and the banks are trying desperately to stop this huge flow of distressed properties from hitting the market. The government, of course, wishes to preserve home ownership and neighborhood values. The banks, of course, wish to SAVE MONEY and REDUCE LOSSES. As a result, we are seeing many new programs and strategies implemented, in an effort to keep foreclosures from taking place, and to offset losses, by disposing of bad debt though other means, like short sales. An interesting note that you may or may not know, is that banks are consistently seeing about a 15 point higher return on short sales vs. foreclosures-only makes sense that they look towards these alternatives, as additional methods of property disposition.
Does this mean an END to REO is coming?
