Is REO listing a dead business?

[John Apple]

I've been researching ways to find legit connections that will lead to REO listings. I am willing to do BPO's to start out, however, I cant seem to find info on those either. Contacted the HUD asset manager for my area and heard nothing back. I know CARES is prohibiting foreclosures right now, but I think there will be a high demand for REO agents once foreclosures start again in the coming months. Am I correct in this prediction, or is trying to position myself for REO listings a waste of time?

[Dan Maciejewski]

I made a post previously that outlines the numbers.  Personally, I don't think there's going to be  a glut of foreclosures.  Hardly anyone that is in forbearance is underwater.  If they are forced to sell, they will be able to walk away with a check.  

And for the ones that are underwater, I doubt any agent that is introducing themselves to the banks is going to really supplement their income with a few foreclosure / REO sales. Like I tell my clients in my area, the timeframe alone should make you wary of dealing with them. You're looking at 6+ months to get from contract to close in some instances.

I can't find my post with the exact numbers -- they may be out of date, anyway.  My thought is that the homeowners that are behind, and are underwater, are most likely to be lower price points, as well.  Financial services and high earning jobs seem to be doing well throughout -- it's the lower wage jobs that are threatened.  So I wouldn't want to target a below median price point market that is going to take years to go from Lis Pendens to actual filing to actual possession to going under asset management to actually getting listed to an actual sale. You should sell a few dozen houses in that time for actual motivated sellers!  From experience, I can tell you that all institutional sellers are the opposite of motivated.

So, from one man's opinion, yes, targeting REOs is a massive waste of time!  Just my 2¢.