I try not to read too deeply into the varying waves of hither and thither thinking that goes back and forth between "foreclosure inventory will return in droves in 2010!" versus "the banks are beefing up their short sale departments!". However, I've heard both schools of thought so much lately that I felt the question had to be brought up for discussion.I am a firm believer that we can only truly and effectively excel at a few things at a time. Having said that, my PASSION for the past 12 years has been REO, both as an investor as well as a broker. I would however like to get some other of you REO professionals to weigh in on this.Look forward to your posts.
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It seems that the concensus is...both! From a brokerage/management standpoint, it seems wise to devote at least some part of our businesses to increasing short sale deals. A comment was made about the CDPE designation. I've heard nothing but good things about this designation. In fact, what sort of brought on my initial question in the first place was one of my clients asked if I had this designation. I dont, but their asking this woke up the short sale circuit in my REO brain.
I believe in the old addage that if your REO job is doing something you love, it's really not a job. However, as brokers who want to serve our clients, we simply can't ignore where the market (and their assets!) takes us.
Your responses were great. Glad to be a part of group of such insightful professionals.
Anton Stetner > Trevor NightengaleNovember 21, 2009 at 5:16am
Was it PMH Financial that asked that question? Because that was who got me looking at it too. LOL.
My thoughts are the federal government has started applying pressure and incentivizing lenders to get short sales done quicker. We were doing short sales before REOs and they have been a long and frustrating commission, but I feel our new ones have been getting easier. I also know of 8 programs that are in beta for "pre-approved short sales" and I think all default agents need to get into this short sale market even if they do not have pre approved short sales. This is an excellent way to increase your income and exposure with banks. I believe there will be a short sale market even after the REO market starts to dry up. I recommend the education from CDPE (Certified Distressed Property Expert) and PSC (partnerfirst.org), I found these to be the most helpful.
I think there is so many homeowners defaulting their homes, that there will be a good inventory of both, I hear all about the approved short sales, the deed in lieu with rent option, loan modifications, etc. Some expert are forecasting higher unemployment for next year, and some are waiting for the Holiday numbers and manipulate the numbers to give us a sense of security and more trust in the economy.
I am not an economist nor an expert and every market has changes, in my state things are not as bad as in others, or as good as in others, but we need to understand our market, what companies are closing, opening, relocating, etc. I think it is good to have a diverse portfolio, I say 50% of my business is REO, 35% Short Sale, 15% traditional transactions.
I also see things different since I have only been an REO agent for two years, and my inventory keeps growing rather than shrinking, I guess for the veteran REO agents things might be different. But at the end of the day unfortunately there are always going to be folks loosing their homes, and folks buyer homes. I enjoy dealing with the asset managers, they are not as high maintenance as some traditional listings, and it is automatic repeated business, I hate doing evictions, I like help giving good solid information to clients to help them make the best decission for them, and I love to seat at the table at a successful transaction where I know the buyer is either getting their dream home or making a profitable investment.
I would welcome either at this point. I have a large staff and my inventories are shrinking by the day. With the Mark to Market changes last April we will be lucky to see significant inventories until Q2 next year. I would welcome some approved short sales.
Johnny Huang > Michael HowardNovember 18, 2009 at 8:10pm
I think by this time, with shrinking REO inventory anywhere, anyone will welcome approved short sales :-)
I agree with Mark. If the servicers would work smarter and approve a well documented and presented short sale, it would cut costs. If the homeowner has exhausted all avenues to retain the home, there should be, and I hope soon will be, a streamlined system to close deals! That will be the only way to stimulate our economy and get back on the road to recovery. Let's face it, if you have been in this biz at least over the last 18 months, you know when a homeowner is not going to keep their house.
Seems to me that banks would be hard pressed not to facilitate short sales. Look at the positive points:
Someone is at least in the home. No living room fires! No damage, no grafitti, nothing that would not have happened if the owner had not been there.
No foreclosure costs.
A much quicker (as long as they get their s... together) transaction.
Replies
It seems that the concensus is...both! From a brokerage/management standpoint, it seems wise to devote at least some part of our businesses to increasing short sale deals. A comment was made about the CDPE designation. I've heard nothing but good things about this designation. In fact, what sort of brought on my initial question in the first place was one of my clients asked if I had this designation. I dont, but their asking this woke up the short sale circuit in my REO brain.
I believe in the old addage that if your REO job is doing something you love, it's really not a job. However, as brokers who want to serve our clients, we simply can't ignore where the market (and their assets!) takes us.
Your responses were great. Glad to be a part of group of such insightful professionals.
I am not an economist nor an expert and every market has changes, in my state things are not as bad as in others, or as good as in others, but we need to understand our market, what companies are closing, opening, relocating, etc. I think it is good to have a diverse portfolio, I say 50% of my business is REO, 35% Short Sale, 15% traditional transactions.
I also see things different since I have only been an REO agent for two years, and my inventory keeps growing rather than shrinking, I guess for the veteran REO agents things might be different. But at the end of the day unfortunately there are always going to be folks loosing their homes, and folks buyer homes. I enjoy dealing with the asset managers, they are not as high maintenance as some traditional listings, and it is automatic repeated business, I hate doing evictions, I like help giving good solid information to clients to help them make the best decission for them, and I love to seat at the table at a successful transaction where I know the buyer is either getting their dream home or making a profitable investment.
Someone is at least in the home. No living room fires! No damage, no grafitti, nothing that would not have happened if the owner had not been there.
No foreclosure costs.
A much quicker (as long as they get their s... together) transaction.
I want to be a banker!