- 16
- Feb 10
3 Comments |
Speak Up Too!
Foreclosure Flood?
An alert for sales professionals
The best time ever to be in the market coming soon....
In recent weeks we've spoken to the leaders of three of the nation’s REO management firms and heard through other contacts from the heads of large financial institutions such as Fannie, Freddie, Bank of America and Wells Fargo, that they're preparing to release a significant number of foreclosures in the next few months.
While the reasons vary, it appears that these firms want to take advantage of the low interest rates and the tax credits for first-time and move-up buyers. Makes sense.
What concerned us was that we also heard that the financial sector is putting pressure on the REO managers to turn their inventories in 30 days or less—clear the pipeline and move the product. As a result, the REO folks are saying that unless the mortgage qualification process gets more efficient, only investors have a chance to get a closing done within 30 days. First time homebuyers (and even move-up buyers) will be at a significant disadvantage when competing for the bargains that are sure to be out there.
What Can You Do?
Here's a thought for sales professionals who are dealing with this market. Why not reach out to all of your potential buyers, through direct mail, e-mail and your website and get these folks pre-approved now even if they're a month or two away from buying. Having your clients pre-approved will give them (and you) a better chance at getting the house they want at the price they want--instead of bemoaning why the market for these bargains got away from you.
Second, get your buyers to understand that they're competing with investors who are not so picky about inspections (which is other great logjam.) Focus on what’s important and not the peripheral issues in inspections.
Great opportunities don’t come along often for any of us. In 33 years in residential real estate, I've never seen a better one.
In recent weeks we've spoken to the leaders of three of the nation’s REO management firms and heard through other contacts from the heads of large financial institutions such as Fannie, Freddie, Bank of America and Wells Fargo, that they're preparing to release a significant number of foreclosures in the next few months.
While the reasons vary, it appears that these firms want to take advantage of the low interest rates and the tax credits for first-time and move-up buyers. Makes sense.
What concerned us was that we also heard that the financial sector is putting pressure on the REO managers to turn their inventories in 30 days or less—clear the pipeline and move the product. As a result, the REO folks are saying that unless the mortgage qualification process gets more efficient, only investors have a chance to get a closing done within 30 days. First time homebuyers (and even move-up buyers) will be at a significant disadvantage when competing for the bargains that are sure to be out there.
What Can You Do?
Here's a thought for sales professionals who are dealing with this market. Why not reach out to all of your potential buyers, through direct mail, e-mail and your website and get these folks pre-approved now even if they're a month or two away from buying. Having your clients pre-approved will give them (and you) a better chance at getting the house they want at the price they want--instead of bemoaning why the market for these bargains got away from you.
Second, get your buyers to understand that they're competing with investors who are not so picky about inspections (which is other great logjam.) Focus on what’s important and not the peripheral issues in inspections.
Great opportunities don’t come along often for any of us. In 33 years in residential real estate, I've never seen a better one.
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Comments [3]
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February 16, 2010 6:25pm MST
Foreclosure Auctioneer
I have experienced this now for over a year now. I have witnessed first hand auctions that were scheduled just to be cancelled just before auction. Why? my thought is inventory control. The problem is, these homes have been vacant for months and months OR the home owners have been living "rent free" for a year+. The dam kept building and building and everyone in my circle saw it coming. This is going to be a difficult year....regardless of the tax credit offered. People need MONEY down and need to be able to AFFORD the payments....period.
... Read all 3 comments ...
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February 16, 2010 7:09am MST
becoming an reo broker !!!
i have been in the real estate business for 23 years can you help me find an organization to guide me into the reo business.I have plenty of capital to get started I also have experience on the other end of flipping houses
Why cry wolf?