Bank Owned and Short Sale!!

Seems like the hot phrase these days is Bank Owned and Short Sale.  While most of my clients have every intention of only selling "resale", most have now migrated to the perceived path of least resistance. . . .selling or listing Bank Owned properties A.K.A. R.E.O..  In fact, not a day goes by that I don't receive a call from a frustrated client inquiring if I or Security Title has any relationships that can help position them to list REO properties for the banks.  Most would like to know the procedure. . .How do I get my foot in the door?  While selling Bank Owned properties is lucrative for some, it is not for most.  I have heard some Realtors say that they believe that there will be more and more REO properties coming on the market and are therefor abandoning their previous marketing efforts to chase REO opportunities.  This could be a grave mistake.

By now I am sure you have heard about the $700 Billion supposed "Bailout" of wall street.  I am sure you have your own opinion as do I as to what we as a country should do.  It does however look like this "bailout" will happen and soon.  Question. . . .What happens to the REO and Short Sale markets?  One of the reasons we have a liquidity crisis is because the banks are losing so much money by writing off bad debt.  The politicians are selling this as a way to save our economy and eventually payback the American people.  They propose to buy the bad debt and hold it for an uncertain amount of time and eventually sell the loans when the market recovers to recoup our investment or potentially make a profit.  What does this mean to an REO agent?  One possible scenario could be an end or drastic reduction in REO and short sale properties. Make no mistake about it, our government does not want the banks to take any more losses.  

The point of this email is to remind you that while focusing on listing or selling REO properties is tempting, we can not lose sight of our database marketing.  Any successful Realtor will tell you that to be successful in this business, you must market to your database.  I am afraid that a large number of Realtors have effectively orphaned their databases; if this is you, your clients will not be orphans for long. . . .they will be picked up by another Realtor.  We could transition to a resale market again very soon if and when the "bailout" happens.  Will you be ready?  

 

 

 

 

Stephen Garner

Business Development Manager

Security Title Agency

Cell:    (480) 223-8113

E:Mail: MyTitleGuy@Cox.net

E-mail: Stephen.Garner@SecurityTitle.com

 

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