HOW DOES THE SUDDEN DEATH OF REO'S AND SHORT SALES AFFECT REALTORS?

Responding to concerns about my last posting, I thought I would share my response to an Agent about what I think would happen to our industry in the near term, if REO and Short sales are severely restricted.


I think we need to think that is will be great for the Country and the Economy, and that will result in a more stable and long lasting recovery of our Industry.

Short term, I think it will cancel a great deal of short sales, even the ones that are listed, being negotiated and even those that are ready to close soon. REOs will also be reduced to a minimum.

Minimum and cancellation does not mean, we will have ZERO business. I think it will take 60% to maybe 70% of the properties off the table (will not be foreclosed or short sold), we will still have foreclosures and short sales, and a lot of the ones that accept the 3 month trial will end up trickling back into foreclosure or short sale.

We will also have many investor owned properties in default, that will be harder to qualify to modify and where investors are less likely to negotiate with the banks.

On the bright side, the dissipating of the Shadow Inventory, will make the market very stable, the economy is already recovering and growing, the stability will bring confidence in the system and our economy will begin a very, very strong recovery and we might even see the beginning of a GREAT ECONOMY very soon. This will bring a healthy Real Estate market throughout the Nation, and we will go back to doing great, just like before this meltdown.

The ones that should be sorry, are the handful of agents that horded the REOs and treated the rest of us like crap, the ones that thought they were the "Middle Kingdom", for those, the time to pay the piper is closing in......... and I am sooooo glad.