The REO Institute attended the REOMAC conference this past week in Hollywood, FL. REOMAC is a non-profit national organization established 26 years ago by a group of Asset Managers, and is a professional trade association serving the non-performing assets industry. James A. Browning was a speaker on the Panel (Property Preservation-Code Violations), along with a Sun Trust Bank representative and other panelists. James had many opportunities to converse with Banks/Lenders/GSE's about the national REO, bank owned properties markets throughout the US. The Banks indicated that the worst is over for the Denver market. Currently, Colorado ranks # 39 in the nation for foreclosures and REO properties. Denver had been number ONE in the nation for foreclosures/REOs in the years 2006 thru 2007.
According to many Asset Managers, the Denver market is stronger than many parts of the country. REO, Bank Owned Assets inventory has decreased and many REO Listing Brokers are complaining about the lack of inventory to sell in the Denver and Colorado markets.
One of the main reasons is the lack of REO Inventory (Shadow Market). Banks and Lenders continue to deal with national problems such as robo signings, court reviews, title issues, and moratoriums. This prolongs the distribution of REOs throughout the country. In states such as Florida and California the process of foreclosure may take 300+ days or more.
In the Denver Market we did not have the "HUGH" increase in the values during the early 2000's that Florida and California did, with our increases being more moderate. James forecasts that in the near future, we will see appreciation in the 1% to 2% range for the next 2 to 4 years in the hardest hit foreclosure areas of the Denver residential market.
James states, "The recovery period for the residential market to return to its height of appreciation may take 12 to15 years to achieve. There is a road to recovery, but it is a long and windy road.!!