In a recent report issued by Core Logic, borrowers with less than 5 percent equity in their homes, also known as near-negative equity, stood at 2.5 million for the fourth quarter of 2011. In total, those with negative equity equaled 27.8 percent of all residential properties. The states with the highest level of negative equity were Nevada (61 percent), Arizona (48 percent), Florida (44 percent), Michigan (35 percent) and Georgia (33 percent). The remeaining states in the U.S. have a combined average of about 15.3 percent of negative equity.
On average Short Sales bring 24% greater returns to the banks than Foreclosures do, according to recent findings from McGeough Lamacchia Realty. This research shows that the banks are losing an average of $43,000 for every foreclosure sale compared to what they would have made in a short sale. The Lenders are obviously aware of this and know that it's in their best interest to promote the Short Sale process as best they can.
Whether or not you've had bad experience dealing with a Short Sale in the past, we can't discount the fact that 40% of today's closings are in Distressed Properties. Short Sale listing assignements by Asset Managers are already starting to become more important and we expect an increase of this over time. So to all our Valued Members out there, PLEASE be sure to keep your REO profiles up to date on our site, and if you have any Short Sale experience or training, be sure to add that to your profiles as well.
Have a great week!
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We take a lot of pride in promoting our members across all available platforms, because we are tied to your success. Every week we strive to provide our members with added value, advice, and tips on how to succeed and make the most out of today's opportunities in the real estate industry. Additionally, Featured Members are posted on our Facebook, Twitter and LinkedIn pages, helping improve your visibility on search engines like google.
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Some asset management companies and lending institutions have their own REO portals you should apply with. It's Free and will get you in their system. These links are usually hidden from public view or advertisement, but our relationships allow us to collect them all. Here are a few we recommend you start with, since we believe they will release the most REO work in the next 3-6 months.
Freddy Mac - Register
Atlas REO - Register
Nationstar - Register
Want to apply with more REO asset management companies? We have over 100 asset management companies you should apply with.
See the New REO Bank Contact List (2012).
According to a recent report by CNNMoney, "Even as the $26 billlion mortgage settlement helps hundreds of thousands of troubled homeowners, it will bring a wave of new foreclosures."
With complex negotiations having taken place between 49 state attorneys general and federal officials, it's no surprise that many lenders have been holding off on releasing their assets until further notice. Daren Blomquist, Vice President of Realty Trac and online marketer of foreclosed properties, agrees that "much of last year's 34% drop in foreclosure filings was likely due to the uncertainty involved in the negotiations". They are estimating that new filings will climb as high as 2.5 million this year, compared to 1.9 million last year. That's a 31% increase! meaning theoretically that the banks will require 31% more reo agents to work with. And the number of new REO Agents needed can definitely be much higher than that taking into consideration all of the new regulations being set forth on the assignments of these foreclosed properties (ex. radius limits, monthly assignment limits, etc...).
