It seems like REOs coming to the market has come to a halt, any ideas when they will start coming back?

Asked by Daniel85, Chicago, IL Fri Oct 29, 2010

After a steady flow of REOs on the market it seems like new listings have come to a halt, or maybe a trickle.

Didn't GMAC and BOA announce they are resuming foreclosures, whats going on here, and does anyone have any ideas when REOs are going to resume coming on the market?

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7
Matt Laricy, Agent, Chicago, IL
Fri Oct 29, 2010
There was a little "freeze" on these, but they are starting to remove that. Dont worry, there is plenty of foreclosure inventory. Depending on what area your looking in, will depend how many there are. Obviously, some areas have more than others. But there are plenty out there, and they will all be on the market at some point. Just have your agent keep an eye out for you.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
0 votes
Michael Pete…, Agent, Chicago, IL
Fri Oct 29, 2010
Yes! The shadow inventory is lurking...likely to seep into the market over the next 18 months...or longer.

The institutional reo owners want as much cash from these as possible. If they put everything for sale at the same time, values could erode further.
0 votes
David Hanna, Agent, Chicago, IL
Fri Oct 29, 2010
They are coming on now and we are seeing them. It will take a little time to see the volume go back up to past levels, but it will get there.
If you are not finding enough to look at, I can promise you any one of us here on Trulia Voices can overwhelm you with options and inventory. Feel free to call or email me if you want me to make good on that challenge.

Dave
0 votes
Scott Newman, Agent, Chicago, IL
Fri Oct 29, 2010
There was/is a moratorium going on with many of the major banks due to concerns over the validity of the foreclosure paperwork they've filed with the banks.

Most of these have been lifted already but there is pushback from many local municipalities- see Tom Dart- over blindly continuing to throw good people out in the streets.

There is 2-3 years of foreclosure inventory- heavy heavy volume- to come so don't worry!
0 votes
Sam Tarara, Agent, Chicago, IL
Fri Oct 29, 2010
Daniel I handle all of the Wells Fargo business here in Chicago and continue to launch new properties weekly - GMAC and BOA certainly have had their delays and this will continue, but a majority of them are moving property to market actually faster than even 6 months ago.

Stay tuned - from the time I receive the first email identifying the new property, then evicting or doing a 'cash for keys', changing the locks, scheduling a trash out, winterizing the premises and/or dealing with violations, not to mention my BPO (Broker Price Opinion) report and having that reviewed........it takes time - up to 30 days.

The REO market is still quite strong, a few more hiccups and some overly cautious asset managers, but rest assured things are not as bleak. HAPPY HUNTING

SAM
0 votes
Philip Sencer, Agent, Chicago, IL
Fri Oct 29, 2010
The 'halt' was very temporary for BOA and a few others, less than 1 month. There are plenty of REO's out there, but it does depend on the neighborhood. It's true that there are fewer in 60611 as that area seems to have stabalized somewhat although there are still lots of short sales. The best source of REO's use to be all the American Invesco conversion disasters, but even those have stabalized to some extent. Now it is a bit more difficult to find good ones. Have patience as others will show up. This 'correction' is not over yet.
0 votes
Jack Lewitz, Agent, Lincolnwood, IL
Fri Oct 29, 2010
Only the Shadow Knows ... That being the Shadow Inventory will soon be coming into markets not already saturated with unsold inventory.
0 votes
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