what will 2012 be like for reos and bpos?

There are currently 6.3 million properties at least 90 days in default. At this time last year there were 6.8 million. While NAR will most probably sent out a "happy days are here again" mailing, I believe REOs will be stable for the next few years. However, if the government steps in to help out, the REOs will be here for much longer.
Regarding BPOs. I really have no idea. I never thought the prices would drop to the levels they have, but then I never thought there would be this influx of new agents performing them.
However, I've chosen to focus on REOs. One sale being equal to over 100 35 dollar BPOs.
I would also predict that the number of agents working in RE will drop, the number of outsourcers will drop but overall income for the survivors will climb.
In other words, no change from 2011.

I believe there will be REOs and BPOs in 2012!

Can you narrow that down to a particular month or quarter?

Lower commissions for the same or more work.

I think we will see some level of consolidation. Some of the smaller companies, maybe not so well run, will close. Sadly some of the decent small one will go as well. Get paid up!

I think BPOs are on life support. Quality assurance people will often throw Zillow in my face when they don't like value opinion. I see Mills cutting agents out of the equation completely within the next few years. Odds are they are working on a plan for this right now.

FSBO, I've never had that happen with Zillow, although they do now and again send me lists of what they consider to be comps and then expect me to justify why my comps are better, which is usually like swatting a fly but time-consuming, or rather, time-wasting. In my area, Zillow is pretty unreliable. Are they really going with that now? Maybe it will improve. As for predictions, I predict many more seasoned REO agents will leave real estate in 2012 for scary uncharted territory.

I never get Zillow comps, do not think I ever have. I have had comps brought to me for comparison, but they are not Zillow comps. I have no reason to think BPOs are falling by the wayside. Nothing that I see points to that at the moment.

My bpos are also on life support. I used to make a nice living doing bpos and I really liked. Now they are just weekly spending money, not bill paying money. The joy has left the job, with low fees and higher requirements. I am spending the day researching another area of real estate today.

I don't know enough to predict 2012 - but I will say this: 2012 should tell us the direction of the BPO industry going forward. We have 9% unemployment, stagnant wages, and as mentioned above, no shortage of delinquencies. The Robo-signing issues that held up work are being solved. If the business doesn't return to 2010 levels in 2012, I don't expect it ever will.

Unemployment numbers are a lot higher than 9%. That is just a "pick a number" % the administration throws out. I am hearing of and seeing more layoffs in Socal than ever before. That number does not reflect the underemployed either.

Judging by the number of calls I am getting all of a sudden from sellers who want to short sale ahead of foreclosure, I think we are in for another round of new foreclosures. The demographics of this round seem to be different, these are not the subprime borrowers but borrowers that had ordinary mortgages but are underwater and can't sell. A lot of them have lost a job and now can't keep paying on a mortgage they have been current with until now.

I agree with Ellen...for the past 6+ months my comments have included... increasing fair market homes entering the market indicating underlying pressures to sell in a less than desired market...whatever that might mean...I will leave it up to the bean counters... come to think about it...my fingernails are looking a little ragged...

I think that REOs will be slow for 2012 because it's an election year.