We know you’ve heard all about REO’s. You know that “90% discounts” you hear on the radio and see all over our videos, websites, seminar presentations and blog posts. Well, last week, in MSNBC.com’s Real Estate section, there was article all about REO’s. Check this out from the article:
“The number of homes entering REO status (short for “real estate owned” by a bank) climbed 35% to 257,944 — the highest quarterly total ever — from 190,543 in the first quarter of last year and 9% from the previous quarter, according to real-estate data firm RealtyTrac.”
Pretty interesting stuff. But the more interesting part, is about how many REO’s the banks have and how many are available on the MLS. Keep reading!
“Just how many foreclosures move through the foreclosure process and when banks sell them will be key factors in how much more real-estate prices could fall before they recover.
Most of these bank-owned properties are not making it onto multiple listing services, analysts and brokers say, despite banks having more of them to contend with.
“We have about 860,000 REOs in our database, and only about 30% of them are available for sale on the MLS,” Sharga says. “That means you have another 550,000 to 600,000 that have yet to hit the market.”
So if banks have all of these REO’s and are selling only 30% of them and have very limited time to get the toxic assets off of their books, how do they get rid of them? These aren’t available to the general public. But that’s where our “90% discounts” come in to play. Come to an REIC seminar to learn more about how REIC is participating in purchasing the 550,000 to 600,000 homes that have yet to hit the market.
