REO Marketing For Lenders
REO & ORE
"Real Estate Owned" & "Owned Real Estate"
The Accelerated Marketing Strategy For Lenders
Today’s market trends are constantly changing and in Michigan the economic climate is below par relative to other states and regions.
The housing downturn has resulted in a negative impact on the lending community. The reduction of home values and the increase of REO properties in lender portfolios has the lending industry reflecting on the days of the past. Many investors continue to rely on old appraisals and extended comparables to determine asking prices for bank owned properties. This strategy is proving to be costly and time consuming for lenders and service companies alike. The notion that real estate is a static market or will continue to increase over time has proven to be a myth. Real estate values are constantly under flux and follow the economic supply and demand cycle. Similar to a commodity traded on Wallstreet, real estate values are determined by what someone is willing to pay for it that day. A professionally conducted auction achieves this true value through its open, transparent, competitive process. It’s that process that is responsible for the awesome success of eBay today.
Real estate auctions offer lenders the tools to:
- Reduce risk of leaking value and holding costs
- Convert a nonperforming asset into liquid cash
- Preserve value in real estate owned
- Produce a cash buyer with a closing in 30 days
- Achieve true market value today, not yesterday or tomorrow
- Allow the market to compete for the highest price
- Reduce time and frugal negotiations with unapproved buyers
- Eliminate pricing mistakes
- Reduce As-Is Liability
- 6 week lead time from contract to auction
- 30 days from the auction to the closing
- Proactive high energy high impact advertising
- Forces the market to react to your property
- The auction and closing is date certain
- Create a fair, honest environment to buy property
- Eliminates the friction of a traditional negotiation