Robo Signing Settlement may Release a Backlog of Foreclosed Properties.

Real Estate Sales Representative with Coldwell Banker Graham & Assoc.

The $25 billion robo signing settlement was reached with 5 banks recently, but what effect is this really going to have. For most of us, nothing. But even for those who will receive payment from the settlement it will be very minimal.

However, this will have a hugh impact on the market. These banks are most likely getting ready to release a ton of foreclosures on the market that were previously unreleased because they were tied up in this litigation. Now that they have settled, and they know that they can move forward with the foreclosures, get ready,

If you are a licensed agent and not actively listing or selling foreclosures, now is a good time to start.

If your a buyer waiting for a great buying opportunity...well it has been here but now it is about to get even better.

"We expect to see foreclosure-related sales increase in 2012, particularly pre-foreclosure sales, as lenders start to more aggressively dispose of distressed assets held up by the mortgage servicing gridlock over the past 18 months," said RealtyTrac CEO Brandon Moore in a press release.

Comments (6)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Nick,  I agree that we may see an increase in distressed properties.  Agents should get some very targeted skills training prior to taking these listings.

Mar 11, 2012 07:26 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

I agree you will have to try to list and sell foreclosures. Hopefully the process will get easier.

Mar 11, 2012 07:31 AM
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

Nick, I don't want to be negative. FHFA has given up on the mom & pop investor and the owner occupant when it comes to REO. We will get cut out of the deal  when the bulk sales to private equity firms like Black Rock, etc. begins. Billions have been committed by these firms to buy in bulk.

Do you really think think that the TBTF's lined up to write down their private label, off balance sheet REO? It may be OK for the GSE's, after all, the taxpayer is their back stop. Well, come to think of it the taxpayer back stops the TBTF's.

On the positive side, we need to clear the REO. 

Mar 11, 2012 10:20 AM
Nick Miller
Coldwell Banker Graham & Assoc. - Jackson, MS

We may be cut out initially in the bulk sales, but I guarantee you they will come back around. The only way some of these private equity firms will be able to move that much inventory is with the help of creative financing, and that is what got us in this mess in the first place.

I deal a lot with FNMA and they are pretty strict with their First Look Option. They haven't given up on the owner occupants just yet in my area. But we will see. Uncertainty is the only thing for certain.

Mar 11, 2012 12:47 PM
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

Nick, I agree with you regarding uncertainty. You are leaving out one thing in the equation, politics & political payback. I don't know if you were around during the RTC Days. There was no creative finance,just deep discounts. Cash Deals. We worked out the reo in 18 months. Agents were not involved in the transactions. we delt direct with investors.

Mar 12, 2012 12:29 AM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

thank you very much for the informative and interesting post. I get so much out of the active rain network.

Mar 15, 2012 07:08 AM