Which REO Should I Buy?

As we start the new year of 2011, it promises to be more of the same. The economy is still sluggish, unemployment remains high, and foreclosure rates are continuing to climb. The retirement accounts people have been counting on for years are now evaporating under the added strain of bad economic conditions, increased taxes and government intervention and a general malaise of the public towards the future.

Due to these factors many investors are finding it necessary to take a more active role in their investment strategies. They are no longer willing to let some “wall street” yuppie with no business experience handle their retirement accounts or more to the point, their family’s future. To some investors the answer is to take a more active role in controlling their investments by becoming involved with more tangible assets, ones they can see, touch, and feel – like real estate. For these awakened investors, owning rental property can be an extremely effective way to protect their capital and generate cash flow.

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BofA Creates New Unit, Names Foreclosure Czar

Bank of America Corp appointed on Friday a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans in a bid to sort out its ongoing foreclosure issues, becoming the first large U.S. bank to do so.

The new unit creates a seventh major division at the bank reporting directly to Chief Executive Brian Moynihan, an indication that the largest U.S. mortgage servicer is attempting to be more aggressive in resolving its problem loan portfolio.

Analysts said the move is a signal that major U.S. mortgage lenders have not yet turned the corner on dealing with the problem home loans on their books.

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Banks still holding 70% of REO from market

RealtyTrac Senior Vice President Rick Sharga said major banks currently hold roughly 1 million REO, or homes repossessed through foreclosure, but only 30% have actually made it onto the market.

RealtyTrac is an online real estate channel where potential homebuyers look for properties discounted after the foreclosure process, along with more traditional sales. It also puts out monthly foreclosure numbers across the country by tracking filings from notices of default through repossession at the county level.

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Fewer Foreclosures Will Help Economy

Reducing the number of foreclosures will help stabilize the U.S. housing market and help patch one of the economy's most troubled sectors, officials said.


One state that is seeing fewer foreclosures is Arizona, The New York Times reported Sunday.
One reason for the reduction in foreclosures, which helps the market because it removes excess inventory, is the array of federal and state investigations into the way banks foreclose on delinquent homeowners, the report said.

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REO Properties – Tips and Suggestions

Lots of people are talking about REO properties; but do you know what they are referring to? When a bank forecloses on a property, they don’t want it. They put these foreclosed properties in a public auction; the ones that don’t sell are referred to as REO properties. REO properties can consist of anything from apartment buildings to vacant land.

Banks don’t deal in the real estate business; they only want to get cash. Because they only want to sell the property as quickly as possible, you can usually find REO properties listed on their website, along with the name of the loss mitigator who’s managing the sale of that property. The loss mitigator is similar to a real estate agent; you will need to contact him or her to set up a viewing, and make an offer if you’re interested.

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Real Estate Buyers Flock to Online Auction of Bank-Owned Assets

Savvy commercial real estate buyers looking to take advantage of the down market have come to LFC.com to conduct research and submit bids on various bank-owned assets in a portfolio of ten REO properties. With just over a month remaining before the bid deadline, the auction has already attracted over 4,600 hits to the website and interested buyers from nearly a dozen states.

The minimum bids are set far below current market prices, giving buyers the power to name their own price in a fair and transparent auction process and sending the message that the seller is in fact willing to trade these properties.


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