My last three blogs here and elsewhere were on how HOPE, HAMP, and HAFA would not stop the next wave of foreclosures in California. Most scoffed and told me to forget REO that Short Sale will be all the rage and there will be little to no foreclosure activity in the future. Well not so fast my friends. Todays Foreclosure report showed that California Foreclosure activity is up a whopping 92.3% YtoY from March of 2009. Even if half of those went to third parties, sold short, or were modified that will give us a 40-50% increase in Foreclosures in the next 12 months as it now takes an estimated 262 days from NOD to MLS. I for one will be working my lenders and vendors hard this summer. Make sure your resume, Errors & Omissions Insurance, RES.net, Equator, 5 Star, are up to date because there is going to be a need for QUALIFIED REO Agents for several years to come.
After a major slowdown for the last three months, I am seeing a bit of pickup here in the Twin Cities, Minnesota. Nothing huge at this point but some signs of the REO business thawing a bit.
Having added short sales to my work load, I think both will be important and will keep us busy. But I have to say the REOs are much easier. Don't pay as much but are easier.
REO's will be making their way back, probably before we expect. But don't put a lot of weight in all the media sources because tomorrow you will read another story about the same area and it will be completely different. Right now, trust the word of those working in the trenches and not the media! The media has no clue whats really happening locally. And ALL real estate is local, not national!
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Having added short sales to my work load, I think both will be important and will keep us busy. But I have to say the REOs are much easier. Don't pay as much but are easier.