| The foreclosure crisis is incredible enough - already | | | | company, Lender Processing Services, estimates that |
| offering amazing opportunities for REO agents and | | | | 30% of the properties that have been in foreclosure |
| brokers. But now there is finally some sunshine lighting | | | | for 12 months haven't even hit the market yet. 30%! |
| up the so-called "shadow inventory" of foreclosure | | | | Basically, that means there could be as many as 7 |
| properties that have yet to be officially recorded or to | | | | million potential REO homes that are still in this "shadow |
| become part of the massive amount of REO listings | | | | inventory." Those are 7 million REO homes that will |
| currently for sale all across America. | | | | need agents and brokers who possess the proper |
| Real estate data and records company First | | | | training in dealing with REO properties. |
| American CoreLogic estimates this shadow inventory | | | | Most people have heard of homeowners just walking |
| at 1.7 million homes as of the end of September 2009 | | | | away from their properties rather than go through the |
| - that's 1.7 million more homes that should eventually | | | | foreclosure process. Just to underscore the magnitude |
| find their way to become REO homes for sal. | | | | of the REO explosion, some banks are doing the |
| With 3 million official foreclosures already estimated to | | | | exact same thing to their lenders, believe it or not. In |
| hit the REO listings in 2009, that means an incredible | | | | San Francisco, the financial institution Morgan Stanley is |
| amount of potential profit for anyone interested in how | | | | giving back five office buildings it purchased a few |
| to become an REO agent. The other astounding | | | | years earlier from The Blackstone Group. It's |
| aspect of these numbers? Most experts think they're | | | | estimated the five buildings are now worth |
| too low. | | | | approximately half the value Morgan Stanley bought |
| In a blog posted at "The Wall Street Journal" online site | | | | them for at the time. |
| on December 18th, 2009, analyst James R. Hagerty | | | | 2010 is going to be another huge year for REO sales, |
| makes the point that First American expects that 68% | | | | no matter how you look at the picture - and probably |
| of mortgages that are over 90 days late in payments | | | | another record-breaker. REO homes also continue to |
| won't go into foreclosure. With today's economy, that's | | | | be the hot real estate category that buyers are |
| a huge assumption to make. Especially when another | | | | interested in, due to the value they provide. |