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Updated over 13 years ago, 07/01/2011
Where Are All The REOs?
Hey guys,
Since Sept/Oct last year, the foreclosure activity has really slowed down here in Central FL. The courthouse auctions went from 150 sales per day to around 25. The main stream auctions have released less properties as well. I was just wondering if you guys in other markets are experiencing the same thing or no?
This is kind of a good thing for us personally though, b/c due to this lack of new inventory, we started marketing to equity sellers via direct mail, bandit signs, etc... Gotta keep moving!
Thanks for any input :D
I have noticed a little slowing. I think because the "tax credits" are finally showing the fact that they simply put off the inevitable continued decline. This now puts a little pressure on the banks to hold even more shadow inventory so the market doesn't tank even further. There's barely anyone (except people who "get it" and have money or qualify) out there who wants to touch real estate right now. Every market is different, but chime in if anyone thinks this is really that far off from what's happening.
yeah it makes me wonder too; there are so many houses right now that can be bought below the cost to rebuild already - how much lower can it go?
In addition, reading the news about Zillows new reports today, I believe they are predicting another 10% drop. One of my personal goals right now is to buy and hold smaller houses - like 75k each - a 10% drop isn't going to hurt too bad. But you're right Ryan, every market is different.
Every area will be different, but a big reason for the slowdown in properties being foreclosed on is because it came to light in about November (i think?) that banks weren't following protocol when foreclosing on homeowners. There has been countless news articles regarding "robo-docs" and Mortgage Electronic Registration Systems (MERS) and in about November a couple of the big banks said they are stopping all foreclosure activity. I believe that they have since started up again, but I have seen very little activity at the courthouse still.
I had a property with a Chase loan which I had under contract at this time and they delayed the closing about 6 months because of this. I believe the banks are going to start the process again in the coming months, at least in NJ. There was a court ruling in late March here where they appointed a retired judge to oversee the foreclosure process. But that is just a guess.
Here is one link to a news story regarding this from Housing Wire.
http://www.housingwire.com/tag/robo-signing
I am seeing the slow REO properties here in CA as well. The banks might try to control the inventory again.
Im also seeing a major slow up in REOs. The banks are holding properties to try and control an already depressed market. If they open the flood gates with these properties it will only lower the values of the current properties that are trying to be sold on the market. Great for investors bad for the banks!!
I too experienced a slowing from Nov-Feb for REO properties here in So Cal, but since March, I have been slammed. I have 11 deals running right now (9 were REO's, 1 short sale, 1 private standard sale from motivated absentee owner)
Things were slow for me til two month ago. I just picked up three. Two REO and one SS. I really want to buy this other duplex I saw owned by PNC. All of their stuff has been taken off the market in our area because of some legal issue.
My husband and I just talked about this very thing last night. Noticed the same thing here in Toledo, OH area since November. Before there was 3-4 new ones on the listing weekly. Now you are lucky if you see 1 new one every 2-3-4 weeks.
Larry - what part of CA are you @?
Will - what part of SoCal? That's funny b/c I have a friend over there that has told me the REO market has slowed and prices are slipping. He's in Anaheim. You got 11 going so something is happening over there!
Jeffery - good for you.
Kel - ouch!
Originally posted by Tony Nguyen:
You are correct that many here will be experiencing slowing in getting REO properties. I just happen to have built some very good relationships which allows me access to properties others cant get. That said, others are certianly capable of doing what I have done.
On the whole, there are fewer REO's coming out this year vs. last year or year or 2010. There is also a slowing of buyers too (due in large part to the high gas prices which create a huge domino effect on RE)
Cheer up!! They are still making Dumb @## loans. We have an aquanitaince that might make $20,000 a year. Single mom ETC. Bought one for about $70k under a "program". She took $700 home at closing "to help her decorate". I am going to keep a close eye on this one. Might be my first attempt at a short sale in about a year; maybe less. If they don't quit financing these homes with nothing invested, it will never end. I thought the crash in 08 stopped all of this nonsense
Don
Foreclosures in NJ are down 86% from last year. In December, a NJ judge placed a moratorium on foreclosures until the banks could "document the accuracy of their foreclosure processes". The banks have all been drafting their policy and procedures manuals since then and presenting them to the courts. It's just a matter of time before they begin releasing them to the market. I'm ready for it. Are you?
