REO Listings: Foreclosures Account For Half of All Home Sales
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by: MattCBA
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More than 3000 real estate agents surveyed nationwide were asked what’s really going on with today’s housing market – and, according to them, distressed home sales, including REO properties, made up over 47% of the total market in September of this year, up from August. Inside Mortgage Finance, together with Campbell Surveys, polled the agents, who also revealed that REO sales were up sharply month-to-month.
Those REO sales will continue to make up a large part of real estate activity as, despite recent controversies over how banks and mortgage lenders were handling foreclosures, a nationwide moratorium on them now seems out of the question. On Wednesday, October 20th, Department of Housing and Urban Development Secretary Shaun Donovan said these foreclosure problems occurring at a few mortgage companies are not “systemic issues.”
“Where there have been mistakes made or errors, we will hold those entities, those institutions accountable to stop those processes, review them, and fix them as quickly as possible,” commented Donovan.
White House Press Secretary Robert Gibbs also weighed in with the Obama administration’s view that a nationwide moratorium on foreclosures would be “dangerous” and will not be pursued.
“We have talked about, over the past week or so, the danger that we see in…halting the entire housing market and the danger that it would provide — or potentially provide writ large — and its effect on the economy,” said Gibbs.
Most experts agree that the overwhelming majority of homeowners currently in the foreclosure process are, in fact, in default and have been unable to pay their mortgages.
There are also simply too many REO homes in the pipeline to ignore. Three of the biggest banks, JPMorgan Chase, Wells Fargo and Bank of America, each reported they had more than $20 billion in single-family mortgages either already converted to REO properties or in foreclosure.
JPMorgan Chase has the largest volume of REO homes with $21.7 billion. It also has $43.4 billion in mortgages past due. Bank of America has $20.3 billion in REOs, and $54.6 billion in past-due mortgages.
And there are billions more in REO properties out there with the smaller banks, such as Citibank with $6.3 billion in foreclosures and $19.2 billion in past-due mortgages.
With hundreds of billions of dollars worth of potential REO listings still to come, the demand for qualified REO professionals to handle those properties will continue to build.
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.
About the Author
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.REORESQ.com
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