REO Inventory Climbing or Declining

Depending on what “Primary Source” you find most accurate to forecast your markets upcoming REO volumes, the forecast is inconsistent.  I am in no way attempting to disrespect any of these “Primary Sources” (DS NEWS, Inman News, Service Link, HUD, Fannie or Freddie) with this posting, rather, highlight the inconsistencies in the reporting’s I have read day in and day out over the past few years. 

To preclude, I am providing my forecast on the upcoming REO inventories in WNY for the new year. Over the previous 12 months, as a preservation vendor for several national field service companies, Metro Property Preservation has indirectly completed over 2,000 initial Re-keys for most of the major players, including Fannie, Freddie, HUD, and all lenders conventional notes.    

Further, New York State, via government regulation, has stepped in and is pushing all lenders / servicers to ensure these assets remain vacant year upon year in an effort to lower the impact of “Zombie Homes” in local communities from creating blight and negatively impacting surround property values.   

Finally, NYS remains one of the states with the largest REO inventories due to judicial processes including bankruptcies, the mediation process, numerous loan modifications, and consistent court proceeding postponements. 

With all that said, in my professional opinion, expected REO volumes are going to spike locally in WNY.  

With the judicial pressure and anticipated increased volume, my question to the HUD, as well as the numerous GSE’s and servicers in charge of the re-sale of the new inventory is - are you utilizing the appropriate Field Service companies as well as Broker / Agent network? 

As all industries methods, strategies, and technologies continue to evolve, your network needs to be able to change with the industry.  It’s time to give the “young blood” a shot, and pull away from the seasoned vets. (Again, I want to highlight that there are a few great REO Brokers in my specific market that have kept up with the industry and have earned their portion of the market.) 

In closing, numbers are numbers, and they can be manipulated to provide any desired conclusion that the user requires. However, facts are facts, and Metro Roberts Realty has sold over 10 Million in Reo assets last year, approximately 35% of our market. This is a 300% increase in the past 2 fiscal years. 

Perhaps, it’s time to consider adding a new Brokerage into your network. 

Metro Roberts Realty

716-891-1710