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No Bank Update Its REO Operation In Cyberspace

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Services for Real Estate Pros with richvalley

As a savvy real estate investor, I will say IMB is very foolish and conservative in its REO operation.

IMB is the one who has been more willing to put out more REOs in its website than others.  However, nobody in financial service is taking the advantage of Internet to treat its website as a marketing channel to get rid of REO.   You name one for me if you know.     (p.s. there are traditional reasons for that: public image and self-protection. I don't want to get into the detail about that.)

US Bank is one of the most aggressive banks to reduce its REO price to cope with the future price trend. In stead of dreaming the top dollars at 2005-2006 peak price, US Bank is positioning itself at a market edge to set a realistic price for others to follow.  If you know RE appraisal business, you know US Bank is a leader so smart to do market price setting.    Nobody can have a better chance to easily get a better price than US Bank.

For examples, US Bank took in a Southern Californian REO at foreclosure minimum bid of $380K (the previous sale price is $520K) on 07-13-2007 and immediately priced it for $347.9K on the market, regardless of a fact that the next door was sold at $440K right before the foreclosure.   After two months, it dropped to $324.9K.  The first price reduction of  $50K is about 15 percent off its listing price.   (p.s.  It's available yesterday. But to me, its price is still too high for an investor.)   I also witnessed it took in a Texan REO at $82K in the last May, priced it for $49K and had it sold for $37K in last October.

In Texas and California, I saw that US Bank has acting as a real businessman, not a lousy and conservative banker, with very good sense to deal with its REO inventory.   But still it sticks to its real conventional channels and has never treated its website as a selling place, too.   Go to US bank site at https://usbankhomemortgage/reo/reoReport.asp#CA and you will see there is ONLY ONE REO property listed in CA that is in central California.   Nothing in Southern CA.    I can show you ten times more than that it has had in San Gabriel Vally, southern CA. 

As I said before, I am a trash digger who doesn't mind to dig, dig, and finally dig a gold nugget out of many dumpsters scattered around many places.   But why all the banks have to make it a hassle to their potential customers by processing its disposal of REO in a so-called conventional "BPO" or a bureaucratic "assets management"?  Why they don't see the Internet advantage of money saving method?  

Okay, I believe that they are a real patriotic hero trying to "add" more red tapes, "create" more jobs and "consume" more papers to figurely increase our Gross Domestic Production.   But those "productions" won't improve our "productivity" or "efficiency" to compete with others or add a real "constructive value" to our GNP.   They are in fact purely a "consummated " waste in terms of global natural resources or our national strength. 


Back to the REO strategy, IMB is too passive and conservative that I don't like what I saw at all.   I can do much better than that to make a non-performing asset (by name, it is an asset.  it is really a debt in fact) back into a real performing asset!   But IMB's operation on REO tells me that IMB may not have an urgent liquidity issue or IMB is trying to bluff itself to cover up such a disastrous pressure.   I have no reason to believe that IMB is too stupid to see a credit crunch is coming toward them, if there is one.   However, I do believe that IMB has to sent its REO asset managers for an advanced learning course.


But it is the personality of Mike Perry and his "balance sheet recession" mindset (prepare to conserve cash, to "minimize losses", not to "maximize profit".)   It seems to me that Mike has been long ready to be responsive to IMB's possible loan loss and liquidity crisis, if any, from his previous experience.   He is doing what he believes is right in a broad banking perspective.   I don't blame him and I trust him on banking business that is why I bought a stock first time in all my life on Dec. 21: it's IMB at $5.91.


I wish IMB stock price could be lower further for me to buy more.  So Mr. Cramer, may I ask you do a better job to create a "strong sell" for IMB, please.

 

Ed Tse
richvalley - Florence, TX
California
 
Merced
 
*** Brimmer Rd.
Merced, CA 95340
Property Id:  7884512508
Reference Number:  2700
Property Value:  195,000.00
Minimum Bid Price:  162,500.00
Bid Expiration Date:  3/18/2007
Selling Company:  A** ****** Realty
Selling Agent:  ****  ******
Selling Agent Number:  209-***-****
 
Colorado

 

Seems we have problem in the US Bank web link.  So I copy and post it as above.

 

 

Jan 03, 2008 11:52 AM
Ed Tse
richvalley - Florence, TX

Correction: 01-20-07

I have to give an excellent credit to REO management of Wells Fargo Bank.  They advanced their market niche by hiring Hudson to do auction. 

Among those properties on auction block this month, Wells Fargo didn't even considered to give a real estate broker a chance to do regular listing and marketing.  They went to an auction directly from court foreclosure steps.  Wells Fargo created a fantastic skillful method that all other auction websites have never done and I kept in my mind. 

It is a great step forward to solve the current housing bubble.  I have to say "great job" to Wells Fargo. 

Jan 20, 2008 02:58 AM
Anonymous
willie mitchell

Hello Friends

 

My name is Willie Mitchell. I was reading your information and really felt you guys have put time and energy into informing those who are interested, whats really happening in todays real estate market. I am an investor and need some advice. I want to by tracks, lots or whatever you know buying bulk to be. I want to buy REO's at a discounted price. If there is anyone out there that can help me please let me know. my email address is 2kids@sbcglobal.net  I want to buy 100 million at the lowest.

 

P.S I ONLY WANT TO BUY PROPERTY IN THE LOS ANGELES CA AREA

GOD BLESS YOU ALL 

 

Willie

323-234-6364 

Mar 01, 2008 12:34 PM
#3
Anonymous
Anonymous

I am aware of a property that you hold in Country Club Hills, Illinois.  The exact address is 18565 Walnut Ave.  It was listed on the multiple listing service and My agent made me aware of it.  I went inside and wanted to put in an offer.  I did so and was never given a response by the listing agent.  I waited for a couple of months and still no response to our offer.  My agent now notices the listing has expired and my wife and I are left with no response and still would like to purchase this property.  Can you please contact my agent Century 21 Hometown, Gregory Powell at phone number 708 704 8559 and help him, help us all.  

 

Thank You

Carlous Boyd

 

 

Jul 11, 2008 01:47 AM
#4
Ed Tse
richvalley - Florence, TX

Carlous,

Sorry, I am not working with Indymac.  I can't answer your question.

After OTS took over IMB the day you posted the reply, we have to see what FDIC will do about the REO properties.  However, I believe that you are probably unable to get the subject property, following the FDIC chairwoman Bair's philosophy.  Even I could be wrong, it is very difficult for a banker/ employee to take an aggressive or active role to let you have the property under the chaos created by OTS, FDIC and Senator Schumer, D-NY. 

At this moment, all I can say is that Michael Perry is too conservative to be aware of "cash flow is money" and also politically gutless to deal with governmental intervention or interference as OTC referred to Senator Schumer.

Jul 15, 2008 01:35 AM
Anonymous
Sunny Oberoi

I am interested in US bank REO. Address is 39 East Street, New Hyde park, NY.

If any one has info please call me 516 395 2920. Cash reward.

 

Sunny

Feb 03, 2009 05:35 AM
#6