After months of bank scandals, the massive held-back inventories of REOs are finally opening up!
Now that these floodgates are opening up, how will this affect the short sale market?
The bottom line is that this is a good thing; one way or another, these inventories need to be worked through in order for the market to correct itself. But read on if you want to know the specifics as to how this will help you as a short sale agent…
Most of us share the experience of stubborn banks digging their heels in at a price without budging, despite a complete lack of interest at that price point. Foreclosed inventory will set new market lows for those properties we’ve had trouble completing CMAs for at a price the market will bear. As soon as the REO listings open up this will change and benefit everyone!
Banks have been cutting negotiators and asset managers while staying on a hiring freeze until the REO scandals started to wrap up. Hence, the system has been gummed up more so than usual with the banks being understaffed. Letting out more foreclosures will force the banks to bring in new staff with a lighter volume per negotiator, expediting the negotiation process of your REOs.
With all these REO properties coming on the market, banks will be under increased scrutiny to help distressed homeowners avoid foreclosure and keep people in their homes.
Look for even more legislation and regulation on the short sale industry to be passed this summer, which will seek to speed up and demystify the process for everyone involved.
Source: Short Sale Daily News