How To Become An Reo Agent: The Shadow Inventory

The foreclosure crisis is incredible enough already offering amazing opportunities for REO agents and brokers. But now there is finally some sunshine lighting up the so-called shadow inventory of foreclosure properties that have yet to be officially recorded or to become part of the massive amount of REO listings currently for sale all across America.

Real estate data and records company First American CoreLogic estimates this shadow inventory at 1.7 million homes as of the end of September 2009 thats 1.7 million more homes that should eventually find their way to become REO homes for sale (this report can be accessed at http://www.facorelogic.com/uploadedFiles/Newsroom/RES_in_the_News/FACL_Shadow_Inventory_121809.pdf ).

With 3 million official foreclosures already estimated to hit the REO listings in 2009, that means an incredible amount of potential profit for anyone interested in how to become an REO agent. The other astounding aspect of these numbers? Most experts think theyre too low.

In a blog posted at The Wall Street Journal online site on December 18th, 2009, analyst James R. Hagerty makes the point that First American expects that 68% of mortgages that are over 90 days late in payments wont go into foreclosure. With todays economy, thats a huge assumption to make. Especially when another company, Lender Processing Services, estimates that 30% of the properties that have been in foreclosure for 12 months havent even hit the market yet. 30%!

Basically, that means there could be as many as 7 million potential REO homes that are still in this shadow inventory. Those are 7 million REO homes that will need agents and brokers who possess the proper training in dealing with REO properties.

Most people have heard of homeowners just walking away from their properties rather than go through the foreclosure process. Just to underscore the magnitude of the REO explosion, some banks are doing the exact same thing to their lenders, believe it or not. In San Francisco, the financial institution Morgan Stanley is giving back five office buildings it purchased a few years earlier from The Blackstone Group. Its estimated the five buildings are now worth approximately half the value Morgan Stanley bought them for at the time.

2010 is going to be another huge year for REO sales, no matter how you look at the picture and probably another record-breaker. REO homes also continue to be the hot real estate category that buyers are interested in, due to the value they provide.

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Article Originally Published On: http://www.articlesnatch.com

Tags: REO

, REO properties

, REO listings

, REO broker

, REO agent

, REO seller

, REO brokers

, REO agents

, REOS

, REO homes

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