I was talking to several REO agents in my area and everybody is complaining that we are not getting assignments like we used to. I have some houses in pre-listing since Sept of last year, and I haven't receive too many new assignments this year, it started great with a busy first week of January, but then it has slow down.
Also bpos are slowing down, and per my conversations with other agents it is the same with most. I talk to some asset managers from large banks a few weeks ago, and they told me that there is a lot of inventory ready to hit the market and that we will be busy for the rest of the year. I have also notice a lot of REO agents also expanding their teams to do short sales. In a way it is a no brainer, I have been doing that for a while. With a short sale we don't have to share with the outsourcers, we don't have to front utility bills, become project managers, etc. the biggest issue is to convince the bank to accept the offer and to wait patiently until they get to review and if they don't approve the sale price then go back to the drawing board, also if the seller is too late, then the risk that the bank might foreclose before we get a chance to sell it.
Anyway I have always said in past post that it is good to diversify, I personally take 2 first time buyers a year, and show properties, etc. that keeps me in the reality of things, and I also take some investors, but that is a little different. It is good to experience the market from different perspectives.
Comments
We were seeing the same 'slowness' in January and (first half) of February. In March things of started to gear up, assignments in the numbers that we had been accustomed to seeing in January.
Another interesting change; the number of REOs that are still occupied when we go to the door. Last year that might have been 65%, so far this year 80%. This is going to push along the process, adding time to the whole process.
In terms of BPO's, the AutoAccepter 2 is still the benchmark for accepting broadcast orders. Right now Clear Capital, ProTeck, Mark to Market, Mainstreet, and 4 or 5 others are pushing orders out quite heaviy, and I'm seeing good statistics on our network for them. So in terms of BPO's, you might give the free-trial a shot at http://www.bpo-automation.com/autoaccepter.html
I've heard talk of the foreclosure bubble bursting, but ever since the Tsunami in Japan I've been seeing reports of more foreclosures due to job-losses & layoffs in the USA related to products manufactured overseas. Also, the trouble in the middle-east is driving up oil-prices, which slows the economy because it burdens us with higher fuel costs.
Short Sales are where its at. Period. In detroit for example, the market now is only 3% REO, yes, 3% REO and 69% short sales. Many servicers and lenders are holding off on forclosure and scratching their heads trying to figure out what to do to minimize losses! Thats where we are coming in. Our newest program, Bridging The Gap, is being worked on with several servicers right now to work directly with their borrowers assigning them to our army of short sale agents. Within 60 days we will be opening up membership and allowing new agents into our organization in ALL areas that are currently closed off for new partners.
We've seen a little slow down in the Atlanta area as well. I've been told similar to the above-that there are a lot of properties on the edge, or already in foreclosure, and that it's just a matter of time before we see them. Judging by information from the Bureau of Labor Statistics, we shouldn't expect a long lasting decline in REO inventory. There simply isn't enough demand for expanded employment in the marketplace, until that changes we'll continue to see more and more properties in default.
Short sales, and Cash for Keys seem to be more frequent among my clients lately, but the REO market continues to offer great investment opportunities for those who are able and willing to step out on the ledge and work hard for success.
BPO's typically slow in the beginning of the year, but pick back up in late February - and from our statistics, it seems that they have indeed picked up a bit in March. However, the volume always varies from one company to the next, and from one region to the next, so I'd recommend registering with a few different companies to spread your orders out a bit over a few vendors. http://www.bpo-companies.com
In terms of payouts, I think the same rules apply: a lot of company's have lower payouts now than they did a few years back, but you're looking at around $40 - $45 per exterior or $60+ per interior, which won't make you rich but does cover the cost of gas most of the time...
Here is the email I got from Ocwen after I specificially asked where the listings are: with gas prices...why would we do BPO's fopr $39 and let them do the islistings?
Hi,
Sorry for the inconvenience.
OCWEN has created its own brokerage operation in California. Therefore, we no longer will be listing assets in California.
However, you can continue to do CMA & BPO’s for OCWEN.
Thanks and Regards
REO Dept