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The Growing Trend of REOs

By
Real Estate Agent with Your Family Realty llc

As a real estate agent, I got into this business because of a deep desire to help people in one of the most important financial decisions of their lives.  Whether it's a first time homebuyer having the thrill and fright of their first home buying decision or a grizzled old timer who knows exactly what he wants, when you help them smoothly negotiate the process and see the appreciation on their face, it's worth it all.

Now, a lot of these same people are in some real trouble.  I don't want to lay blame anywhere, but for whatever reason, the people whom we serve can't afford to pay for their home anymore.  When that happens, a long, difficult, heart-wrenching process begins:

  • The struggle to make ends meet degenerates to being unable to make ends meet.

 

  • The house will go up on the market, but they owe so much on their mortgage that they have to price it above market value to cover closing costs.

 

  • After discussions with their lender, they get approval for a short sale, and the desperate attempt to sale the house in 90 days or less begins.

 

  • Finally, the forclosure process starts with it's endless quantity of BPO and then the property becomes bank owned or in the lingo REO (Real Estate Owned).

Is this a few people or is this a growing trend?

Here's the current information I have:

2006 REO Listings: 600,000

2007 REO Listings: Over 1,000,000

2008 Estimated REO Listings: About 2,000,000

The reality is that some of our past clients need our help now.  If we can help them sell their homes and downsize before the hole is dug to deep, then great.  However, very few want to give up their dream home until it's too late.

 Otherwise, I hope your brushing up on short sales and REO lisitings :-(.

Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy Ron

This is a fine rading post. I got in to the home inspection business because I like helping folks.

Have a good one

Oct 04, 2007 11:10 AM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Good post.  It is true.  The housing market is in a crisis which means our communities are in a crisis and we have to be there to hold their hand.
Oct 04, 2007 01:05 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I wish it wasn't true that so many banks are taking back these properties that couldn't sell when the owners tried to list them. The homes usually sell for much less than they would have if they had let the home owners sell it for what it is worth instead of what they want from them.

The bank doesn't account for lawyer costs, holding time and carrying costs when they take a property back. They lose so much more than they would if they just sold it at the right price with the home owner in the first place.

Great post and hopefully people will contact us before the first letter from the bank arrives.
Nov 20, 2007 04:18 PM