Where are the REOs ??

2011-10-16T02:19:00.000-07:00

For the last two years everyones been asking “Where are the REOs?”

There’s a whole lot of confusion swirling around that question. How many reasons have you heard ?? There’s probably a little truth in all of them as there seems not be one defining answer. Trying to whittle it down is like trying to get a sip from a fire hose as everybody and their brother has an opinion as to where the REO’s are hiding.

We don’t need to look far to read and hear the number of foreclosres across the country piling up somwhere in an ethereal REO office in the sky.

It's been almost 2 years now since the back-log started. The initial kibosh on liquidating REO's was put on by Obama in an attempt to save the world.

Obama unilaterally put a stop on all foreclosures.

After that didn’t work, in California Schwarzenager put a stop to all foreclosures.

After that didn’t work, the banks put a self imposed moratorium on foreclosures.

Now that all of these measures haven't accomplished a hill a' beans, we are where we are today - REO's piled up on asset managers desks in gray offices with no windows.

..So where are the REO’s ?

First we need to understand how foreclosure properties are held in numerous ways.

They are bundled and held by corporations, bundled and held by private investors, individually held by corporations, individually held by private investors, and directly held by banks. Every holder of these foreclosed properties has their own agenda as to why they are not putting them on the market.

A few the reasons I have heard on the street as to why the REO dam is plugged are: the properties can’t be released all at once lest it further drive down the supply & demand value, investors are waiting for a brighter day for the values to come back, in the case of several investors owning the same property, all involved need to be on the same page as to how and when they are released, robo-siging & unlawful foreclosure litigation ..and a whole slew of other reasons we may never know this side of eternity.

The take away is this; the investors are driving the bus. Personally, if I owned a dirt clod I couldn’t sell it fast enough, as my prognostication is that we have ugly times ahead that are not condusive to higher real estate prices. But the properties are not mine and I am merely a cog in the REO wheel. As to when the flow will start flowing is anyone’s guess. What is sure is that you can only build a house of cards for so long as the inevitable is inevitable. And as everything in life it to will have an end. Till then, fasten your REO seatbelts as there is turbulence in the foreclosure skies ahead.

by:

Ronny Santana

Ronny@PennValleyRealty.net

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Real Estate / Buy Sell - Yes No ???

2011-04-07T17:05:00.000-07:00

Ask 10 people, get 10 answers on this subject. People always ask me this question and I also get a sundry of responses to my answer. I tell sellers and anyone who owns property; if I owned property now I couldn't sell it fast enough. .."But you're a real estate agent." If I was Caesar I wouldn't buy Rome if it was burning. "But my house value has dropped so much already." Cut and run, it's gonna drop even more.

Give me 3 things that the current administration in DC is doing to improve the economy and bring jobs back ? Once the deer in the headlights look wears off no one can answer me. That's because there is NOTHING on the horizon to bring jobs back or to cut spending. No new jobs = No housing demand = High Inventory = Tumbling prices. The deficit is so large now that even if we were taxed at 100% we could not pay it off. It's mathematically impossible to pay it off and was designed that way. Read "The Creature from Jekyll Island" and you'll be ahead of 98% of the population in regards to how the money world spins and is controlled by the bank with no tellers, the Federal Treasury.

Having now throughly bummed you out you're asking; "Then where do I run ?" This is the good part; in every crisis there is always opportunity and this scenario is no different. Wealth doesn't vanish, it moves from one base to another. I have put most of my money in precious metals, specifically silver. Every time a society has cranked up their printing press, starting in 460BC with Greece in the Peloponnesian War with the Greek government trying to fund the war by printing its way through it, paper money reverts back to its intrinsic value 0, and silver & gold come out victorious.

I know these aren't things your "Neighborhood Realtor" who hangs a pretty postcard on your door that just wants to sell your house will tell you, but you need to be educated in order to make the best financial decision for you and your family.

I encourage you to take action to protect your assets while the opportunity door is open. This is what I tell my friends and do no different for my clients.

* The only caveat I have on not buying a house now is; if you have a bag of money to buy one and your going to live in it until you get taken out horizontally, then go for it. Who cares what the value drops to.

written by:

Ronny Santana

BayAreaREO@attl.net

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PENN VALLEY Realty

Where are the REOs ??

Real Estate / Buy Sell - Yes No ???