REO Listings Update: 2010’s Record-Breaking Year
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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
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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