reo properties: responsibilities, education, and opportunities for real estate professionals welcome...
TRANSCRIPT
REO Properties: Responsibilities, Education, and
Opportunities for Real Estate Professionals
WELCOME Page 2
Learning Objectives
Participate in and take advantage of business opportunities in the REO market—single and multifamily homes
“Asset manager” = professional who manages REO transactions
1. The REO Business2. Opportunities for Real
Estate Professionals3. Listing REO Properties4. Marketing,
Monitoring, Closing5. Representing the REO
Buyer
Page 2
1. The REO Business
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REO Life CycleForeclosure
Limbo
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Who Owns REOs?
Federal Government Entities GSEs—Fannie Mae, Freddie Mac HUD, Veterans Administration U.S. Department of Agriculture FDIC Department of Treasury/IRS U.S. Marshalls Service
Banks The Big 3—Bank of America, Chase, and Wells Fargo
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REO Pipeline
All the properties moving through the process from foreclosure to a completed sale
Not in “foreclosure limbo
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RE
O
Market Indicators
Unemployment
Underwater Mortgages High-Risk
Mortgages
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Shadow Inventory
Judicial foreclosure states
Mortgage modification programs
Moratoria, forbearance
Paperwork delays
Lack of staffing
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Shadow Inventory Facts
About 12% of all active mortgages are 30, 60, or 90 days delinquent or in foreclosure
About 8% of mortgages are seriously delinquent (90+ days) or in foreclosure
Foreclosure starts outnumber foreclosure
sales by 3 to 1
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Practitioner Perspective
Leo ParejaReston, Virginia
“There's opportunity for everyone … Figure out who you are, what your gifts are, and how to make it work for you.”
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Investors
Deeply discounted properties, attractive opportunities Buy and hold in hopes of
future value appreciation Fix and rent for income
stream Fix and flip in hopes of a
profit
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Home Buyers
Opportunities for first-time and repeat home buyers and second-home buyers Fannie Mae—HomePath® Freddie Mac—HomeSteps® HUD—Good Neighbor Next
Door Program
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Communities and Nonprofits
Buy, fix, and rent, or sell as a fundraising opportunity
HUD Neighborhood Stabilization Program
National Community Stabilization Trust
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Community Issues
Abandoned, vacant properties Depressed comparable salesDownward pressure on property valuesKeeping track of the owners, holding them
accountableDemolition when beyond repair or the
market is overwhelmed
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