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REO Properties Responsibilities, Education, and
Opportunities for Real Estate Professionals
WELCOME
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Learning Objectives

• Participate in and take advantage of business
  opportunities in the REO marketsingle and
  multifamily homes
• Asset manager professional who manages REO
  transactions

1. The REO Business
2. Opportunities for Real Estate Professionals
3. Listing REO Properties
4. Marketing, Monitoring, Closing
5. Representing the REO Buyer

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• 1. The REO Business

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REO Life Cycle
Foreclosure Limbo
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Who Owns REOs?

• Federal Government Entities
• GSEsFannie Mae, Freddie Mac
• HUD, Veterans Administration
• U.S. Department of Agriculture
• FDIC
• Department of Treasury/IRS
• U.S. Marshalls Service
• Banks
• The Big 3Bank of America, Chase, and Wells Fargo

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REO Pipeline

• All the properties moving through the process
  from foreclosure to a completed sale
• Not in foreclosure limbo

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Market Indicators
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Shadow Inventory

• Judicial foreclosure states
• Mortgage modification programs
• Moratoria, forbearance
• Paperwork delays
• Lack of staffing

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Shadow Inventory Facts

• About 12 of all active mortgages are 30, 60, or
  90 days delinquent or in foreclosure
• About 8 of mortgages are seriously delinquent
  (90 days) or in foreclosure
• Foreclosure starts outnumber foreclosure sales by
  3 to 1

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Practitioner Perspective

• There's opportunity for everyone Figure out
  who you are, what your gifts are, and how to make
  it work for you.

• Leo Pareja
• Reston, Virginia

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Investors

• Deeply discounted properties, attractive
  opportunities
• Buy and hold in hopes of future value
  appreciation
• Fix and rent for income stream
• Fix and flip in hopes of a profit

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Home Buyers

• Opportunities for first-time and repeat home
  buyers and second-home buyers
• Fannie MaeHomePath
• Freddie MacHomeSteps
• HUDGood Neighbor Next Door Program

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Communities and Nonprofits

• Buy, fix, and rent, or sell as a fundraising
  opportunity
• HUD Neighborhood Stabilization Program
• National Community Stabilization Trust

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Community Issues

• Abandoned, vacant properties
• Depressed comparable sales
• Downward pressure on property values
• Keeping track of the owners, holding them
  accountable
• Demolition when beyond repair or the market is
  overwhelmed

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