Are Short Sales The New "REO" Wave?

As most of you have noticed there has recently been a lot of buzz about short sales.  Recently went to a few conferences and was surprised to hear all the big REO brokers talking about getting some short sale action.  One of those conferences was held for a group of Master Brokers who probably thought they would never have to do a short sale.  I remember about 3-4 years ago when a previous broker started marketing for short sales and everyone looked at him like he had been out in the Las Vegas sun way too long.  Everyone was going crazy trying to get into the REO game and here he was making us work hard for no money.  Those first short sales attempts....yes they were attempts because that's what most of them were....were tough!  The banks didn't want to give us the time of day, there was so much follow up to do and not to forget the mountains of paperwork that needed to be done.  Little did we know that he was getting us ready for the next HOT market!  After a few short sale attempts I decided maybe the broker was crazy after all and went with the masses in the pursuit of REO.  Fast forward to today's low REO inventory, REO brokers floating their teams and most agents jumping on the short sale band wagon.  My crazy broker turned out to be a visionary who knew the cheese was about to be moved and he got a jump start on it!  I bet he is smiling wide like a fat Chesire cat.  Kudos to you Derek!!!

Ps
I did manage to close a short sale early in my real estate carer for a widowed mother whose husband had just passed away and was having a hard time paying her mortgage.

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  • Thanks to all of you for sharing. Yes, Luis, another market that is lurking in the shadows is the commercial REO/Short Sale market.
  • Wau, these coments and this website plus other resourses that have started to come out around 2 years ago and much stronger around a years ago talking about short sales, MODS, and Reo's. I wish I had around this time back in 2007, that's when I started my research, and found out that the so called short sale , was the same thing we used to do back on the late 80's and late 90's, yes the market stopped going down around last quarter 96 , early 97.But we used to call it short-pay or pre forclosure Sale. then a flat line of ........ you know the rest. Short sale comes from wall street , when they short sale stock.Now lets fast forward to late 2005 + 6-7yrs= 2012+.till we go on a FLAT LINE, for a few more years. For me the New Short sale was created to stop the spirall of foreclosure , plus it will not break a whole City or state. Short sale will save your equity( yes YOURS). and best of all this homes will not become REO's. Low income cities were the first to go, then mid price areas, now high price residentials ($500-$2MILL depending your area). the others mentioned have not stopped, they just grabed on to Mods , avoiding the inebitable for a great number of people. Lets not even mention Comercial short sales. You have to be ready to recieve them and help them. there is so mouch to write, but lets keep it there for now. Its a huge diference when you knock on someones door and say Hi, am here to to help you and educate you. BIG diference of when you knock after the foreclosure and say , hi am here to....... you know whats your first sentence and is not cash for keys. This is written to encourage you to Learn Short Sales, Becouse is here to stay for a while. as of today I have no SS certification but thanks to REOPro I will get my first on Next Weekend, at the 5 STAR short sale Summit, hopefully i will be reporting highlights her at REOPro. Carlos I would call your Broker a "Master Short Sale Broker", and is not too late to catch up to him. But look of Information Saturation , this causes Paralisys. plus you will not be ready till you Do at least 20 , and you are still learning. Did someone Mentioned PLATFORMS?.
    Good Luck.
    CHRIS SORONSEN has permited me to use some of his writings from Trulia see this link: http://www.trulia.com/blog/chris_sorensen/2009/12/new_short_sale_gu....
  • There will always be a market for diverse real estate transactions and/or investments. In my opinion, short sales are going to be the hot market for quite some time. REO is here to stay but not in the volumes we saw the last couple of years. Another market to keep your eyes open for is NPs and NPNs.
    • Carlos, what do you mean by NPs and NPNs? Have not heard that term yet.
      • I meant to write PNs ( Performing notes) and NPNs (Non-Performing Notes). There is also BGs (Bank Guarantees) and MTNs (Medium Term Notes).
  • Yes Carlos, I have to agree with you....the cheese has been moved, again. I'm was just hoping this short-sale fad is just that, a fad and will go away soon.
    • I don't think it’s going to be a fad Steve. I have had discussions with a couple lenders I work with who are moving large chunks of personnel over to new "short sale depts". Word is via new HAFA guidelines at least a couple large banks are agreeing to forego deficiency judgments and promote approved short sales. There are a whole slew of requirements involved for the HO but it looks like it could be something with life.
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