In my area of Florida we are seeing REO listing spread out among many, many new REO agents. The big time REO kings are still there but not dominating as they did until the last 6 months. Have also heard Asset managers comment that the trend is AWAY from dumping large volumes of listings on 1 office. Also recently picked up a few 120 day out reassigns from one of the REO kings in the area..

Getting those properties reassigned from the kings/queens is a great way to make a name for yourself if you can move them. It's a great opportunity you have there.

Up here it's dominated by kings/queens. I have heard that certain clients are trying to spread them around but then I see the kings/queens opening additional offices and adding agents in an attempt to keep their inventory. That way they still get the bulk of the inventory. I almost considered going to work for one of them who consistently has over 400 listings but after the interview I decided to stay where i'm at and build on what I had. They wanted me to hand over all my clients to them and just service their listings for 35% and I wasn't willing to do that.

Back on topic, this month we got flooded with new listings and it doesn't look like it's going to slow down for a while.

One Reason for the flood if not Tidal Wave is the new law passed May 20th concerning saving homes which the banks hoped would give them the cash difference between what was owed and the amount they would modify to. It also allows tenants 90 days or the rest of the term of a bonified arms length lease whichever is longer. They had to set up systems to manage the occupied properties which will be in place in mid to late july.
Now that they know that the Gov. is not going to put as much money into loan mod and the rules are more restrictive than originally lobbied for they will put them on the market. There are between 800,000 and 1,000,000 properties in the US that have been held off the market in the past 6 months.
Also, Credit Suisse puts out a nice chart that shows not only ARMs that are up for reset but also the Alt-A's that have not yet really started to reset. Current numbers say just shy of at TRILLION dollars worth of loans will reset in the next 3 years with an anticipated 80% defalt rate expected on Alt-A's. Short answer REO is going to go like gangbusters for at least the next 3 years. What the chart in the link (in a later post) does not show is that there was a Significant dip in the number of loans that reset in lat 2008 and early 2009. The moratorium hit at a time when, by comparison, significantly fewer loans were reseting. However, this is only a temporary dip and is starting to rise right now.

Grampa, can you post a link to that Credit Swisse chart?

Yes I agree that REO is going to be a good business for the next 3-5 years but a dozen listing right now would be nice. We've only received 6 new listings so far this year and all of them were last month.

bratchy,

Some story here in the Berkeley. I cover SF and the east bay, and I've only gotten 7 this year myself. However, only one of them was in the last 2 months. No 'tidal wave' here.....

Meanwhile, I could do 500 BPOs a month if I wanted to (I'm doing about 70-80 a month on average for the last 2 years).

I have sold 13 REOs this year. With no new listings since March 2009. I am glad I "conserved" my income from 2008.

For some reason, I am doing more bpos from "new" companies that give listings; two of the companies I have been trying to get bpos for two year. I decline bpos from bpo mills - for me they are waste of my time and too much aggravation with quality control.

With everyone's opinion about REO tidal waves, moratoriums etc. I think 2009 is shot. I am tired of calling asset companies hearing "we are slow, there is a moratorium, as soon as I get something we will send something." I am tired of the scammers coming up with this "new REO agent/broker" website asking for $200-$500." Yeah whatever!!

I am going to just enjoy my free time and summer and when the listings pick up they pick up and I will be ready and rested.

I know on the MLS I see people with REO listings that were definitely not in the game 18 months ago. So it will be interesting to see what actually occurs. I hear from buyer's agents, contractors and others about how some of these "listing agents" do not know what they are doing. All unsolicited remarks.

I am kind of sick & tired of the so called experts and everyone talking about who they talked to on the inside who gave them some inside information. I am concluding it will happen when it happens - I am going to just live my life. Wow. I guess I needed to rant!!

Over & Out.

A couple of the big queens and kings in our area have slowed down tremendously, I see a lot of new REO Agents popping up everywhere. Maybe the banks are actually seeing the light and letting others have a crack at the REO biz. As far as them coming on the market, I am still waiting for the spout to be turned on high.

I've watched REO's pop up on the MLS with new names over the years. The usual career arc for an REO agent is about 1-30 REO listings before they start to make mistakes and shoot themselves in the foot with the asset managers.

Wait 6 months and see if those agents are getting any new listings.

There is a reason every market has REO kings and queens. They know how to handle the workflow and know what their clients want.

I agree

Jim,
I researching the link I ran across some info that questions the accuracy of the chart that I spoke of. Interesting read non the less. I have added the link to the blog questioning its accuracy as you can see what it is there.
http://healdsburgbubble.blogspot.com/2009/05/reset-chart-from-credit-suisse-has.html

Please note when you are looking at that chart that if you push the option arms that probably will not recast when shown (due to not hitting the 125% mark) but at the 5 or 10 year date takes some of the bumps out of the chart. Shortening the peaks but taking the depth out of the valleys until 2014 or 2015. It also takes about 1-2 years from when the mortgage recasts or the regular arms reset until a property sees the market. Not from foreclosure but from when it resets due to people trying to hang on then getting behind enough to get served plus the foreclosure process time etc. My best guess we will be pretty steady through 2016. CA, FL, & NV have the vast majority of the Option type arms that allowed for negative amortization so the rest of the country will not be affected as much by them.

I got tired of hearing about the banks holding properties off the market so I did some investigating today.

I've noticed that all year the foreclosures were all being postponed by the lender. In my area,last week was the first week that the banks stopped postponing the trustee sale and actually took homes back.

I was not getting any listings so I decided to go drive by the 20 homes closest to my office that went back to the lender last week. I wanted to know if the banks were foreclosing and then sitting on them.

Here are my findings.

13 of the homes were occuppied by the former owner or a tenant.
5 of the homes were in the possesion of a realtor.
Only 2 homes were vacant but not in the possesion of a realtor yet.

It is clear that the banks are assigning the homes to an agent as soon as they take it back.

I was surprised at the high number of homes that were still occuppied. This falls in line with my experience with the 7 listings I received last month. Lots more CFK's in our futures.

So I believe that the banks have been postponing all the foreclosures all year as they tried to do loan mods. They starting taking them back last week and they are assigning them to agents right away.

No market manipulation they were just trying to do a good faith effort to modify loans.

I know this is waaaay to small of a sample to be scientific but it is good anecdotal evidence.

I know people hate to share info but can someone give me advise on getting REO listings. I have done 1000's of BPO's but cannot seem to connect to the proper people to obtain listings.

Geewhiz, You're about to get slammed by all the usual suspects, but not by me.

I will simply post the same advise that i've posted several other times on this site. Nobody ever seems to listen or even acknowledge, but I know that it works. If you want to be good at something, find out who's already good at it, and then go there.

That's how I wound up at an REO specialty company. Because I sought them out at every opportunity and then I got lucky. Any time you are doing a second opinion BPO on a vacant REO property, that is an opportunity to network with someone who knows more about this business than you do. Take those opportunities. Ask, Ask, Ask. You never know where it might get you.

Oh never mind, nobody ever listens to me anyway.