The bulk REO market has been going around like a game of musical chairs and now they are being left without a seat. For the past couple years, investors have been buying large blocks of REOs from banks with the hopes of reselling them to other investors. That strategy has worked for a time, but now investors have been satiated with product and a number of people are stuck with low-end properties with no real strategy of selling them.
The major problem with these houses is they are like rotting fruit. That is every day they sit vacant, they are worth less and less. The houses get vandalised, squatters move in, the houses get fined by cities for un-mowed yards or snow on the sidewalks, and the worst is that they get demolished for being uninhabitable. Banks are starting to understand how bad it is to have vacant houses sitting there and are beginning to be more aggressive about moving them, which will push the market down even further.
Investors that have houses need to get them sold as soon as they can. Each day that passes the investors incur carrying costs and the risk of diminished value in their investment from vandals, as well as being subject to the market swings.
If you have houses or know of someone who has gotten stuck with REOs, check out my website www.nobankhouse.com . I can help you out as well, just send me a note.
