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At some point when i started getting REO's in 2006 i was told by Spring of 2009 it would be all over. Boy they were wrong in 2009 i sold 189 REO's but something was different then. REO's were being traded from one asset company to another and i was sent along the ride with the new companies selling an average of 150 a year till 2014. Now in 2015 the REO's are just drying up with no new asset manager on the block and nobody even making claims that we have a shadow inventory coming sometime soon. So is it finally over? 

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Comment by Melinda Mlynski on August 3, 2016 at 10:15am

I dont think REOs will ever been "over". It may ebb and flow like real estate itself, but there will always be foreclosures on the market. I have noticed that banks are now trying to auction their homes before listing them on the market. That seems to be a trend in the last 6 months or more. 

Comment by Marvin Von Renchler on December 14, 2015 at 12:04pm

People its much deeper than that. Our illustrious government run by the first and second most horrible President of all time is keeping the banks in beans and without taking losses, the banks simply are not taking the money and man power needed to ride heard on getting the REOs to brokers and going through the process of selling them, Vacant homes are all over Portland and I assume other cities too. I Know ONE broker in Portland who does REO work and he gets everything Wells Fargo has in several zip codes. He has to pay out of pocket to keep the power on, have them maintained, etc until they are sold. His monthly output is thousands. How many brokers can do that? All their eggs in one basket 9broker) means far less work for the lenders. The face of the industry has changed. Regarding going back to traditional real estate? Nah---there are too many brokers. Many wont survive. Sellers dont need to list any more, and low rate or single fee scalpers abound. In my MLS they have a new category for listings. You can put one in for $50 if you choose with NO agency at all to the seller. In a sense its opened the MLS up to being a local newspaper for advertising and brokers are just ad account agents.  LOW inventory, actually having to QUALIFY for a loan now, and other factors are tightening the noose around traditional brokers necks. Better go to night school folks. I owned mortgage companies before the 09 crash. I closed down but before that I had warned brokers from coast to coast that the industry was changing and dying. I was called chicken little by all those people now in other occupations.  Figure out some crazy niche and put your hearts into it.

Comment by Roger DiRuscio Fremont, Calif. on June 3, 2015 at 9:08am

It is normalizing, Time to get back to basic's

Comment by Dorothy Monette on May 23, 2015 at 11:40am

I just saw an article on yahoo news, that April was it's highest peak on foreclosures. If that is the case, how come I can't get into the REO market? I've signed up with so many companies and NOTHING! I'd sure like to know what it is I'm doing wrong. 

Comment by Michael Weaster on May 22, 2015 at 12:00pm

REO will never be dead, I have been doing this for 35 years now and tell you the waves have never changed.  There will always be the buyer who either buys to much home, gets laid off or some other life changing reason that will cause the default, not to mention the 700,000+- reverse mortgage loans that were made from 1987-1995.  In my worst year I sold 90-100 REO, in my best in 2008 I sold 1103 and we are not a team.  What everyone has to think about is where the product will be coming from because there is no sub-prime right now so no new lenders out there however the hedge funds that purchase all the home for rental pools were never set up for long term, usually 5-7 years and were getting close to some of those terms coming up.  Are the rental homes going to be the new sub-prime?  Are those homes going to be worth what the hedge funds paid for them in 2-3 years?  Only time will tell but REO my friends is not gone and never will be.

Comment by Steve Strong on May 22, 2015 at 9:45am

Yes, same here. I didn't sell as many as you, but I averaged 40-50 REO's in inventory and right now I have about 12-15. Things certainly have fallen off the table. Many company's are selling their  inventory in bulk sales to high ended investors rather than going on the market to us, as before. I don't think it's "over" but I can surely say the inventory is down, will likely stay down now that more qualified Buyers are in the marketplace. Its time for us all to diversify and search out new or different income streams in the real estate industry. 

Comment by Jesus (Jesse) Gonzalez on May 21, 2015 at 1:22pm

Is it finally over? Well, the glory days of having 1 agent sell 189 REOs a year are. Why....well, that's a very complicated question to answer but, here are some contributing reasons...

#1: REO portfolios have been sold to Property Management Service companies for long term hold and rent revenue stream strategies.

#2: The development of the 2nd real estate bubble. Specifically, take Nashville, my home area as an example. We have rising home prices not because demand is so high but, because inventory is so low. In essence, we are creating a pricing bubble that will burst as soon as developers get off their kotukus and start building subdivisions again.

I am sure many more people can come up with many more reasons but, these are the two biggest factors effecting REO in my area. So...unless we have another catastrophic economic collapse, REO agents are going to have to diversify their own income streams.

I say that but, let's be honest, most REO agents weren't REO agents until 2007 so, they should be able to adapt back to doing traditional equity real estate. Only those agents who have had long term....10 / 15+ year REO portfolios will be getting REOs. It reminds me back in 2005. We had 1 .... maybe 2 REO agents in the entire county, now we have like 30 or more. My point is, 25-28 of those "REO" agents....aren't going to be REO agents come this time next year....if we don't have a economic collapse.

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