NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
I was fortunate enough to attend an event last week where the focus of the room was on REO’s. A representative for Freddie Mac and Fannie Mae all but said, there is no way you’re going to really see any kind of flow of REO’s on the market. However the pundits on the panel and those in attendance only heard what they wanted to hear… that there was hope and they would be getting REO listings soon. Strangely, that wasn’t what I took away from it. The fact is simple – only 20-30% of Freddie and Fannie properties see the retail market. To be an investor or agent and list or sell those properties you fill out a web-based form on their respective websites. They will then review your application and I would assume, inform you of their decision?
However, one of the highlights of the evening for me was meeting the rep from Fannie Mae and asking questions that nobody seemed to want to ask. While I was waiting to speak with her I waited patiently to speak with her, I watched agents and investors shoving their cards into her hand. They explained how they were the richest buyer of REO’s or the greatest listing agent of REO’s. The rep had a fake painted on smile and diligently accepted these cards. I would personally like to take this opportunity to inform everyone who gave out a business card, that she (the Fannie rep) more than likely (and strictly my speculation) threw them all in the trash. I would if I had her job.
…Which brings me to my analogy of REO’s, agents and investors… So I’m out at my ex-wife’s farm this past weekend playing ‘toss and fetch’ with the neighbor dog Blue. I would toss the ball to the furthest point in the yard for Blue to get a maximized run. On one such toss, I threw the ball a bit too far and it went past the fence into the goat’s pen. Blue layed there staring through the fence at this tennis ball, mentally willing it to her. I felt bad and I was also feeling a little lazy, so I got a spare tennis ball from the house without going into the goat pen. I tossed the ball within inches of Blue’s face. She wanted no part of the new tennis ball; it was all about the ball that was sitting in the goat pen. Now, I’d love to tell you how I went got the ball for Blue for the BIG happy ending… Nope, I wanted to see how long this would last, after all Blue isn’t my daughter’s dog. Blue literally stared through the fence for 8 hours straight at the darn ball! Finally, I went and got the ball for Blue. Blue was prepared to wait forever for something that wasn’t going to happen. I’m not exactly sure why Blue was so obsessed, but she was. Friday night I saw that same look in the eye of many investors and agents staring at Freddie and Fannie representatives.
REO’s are not going to appear overnight, nor are REO’s going to be available in mass sales via retail agents or auctions. 30% of all Freddie and Fannie loans see the retail markets, most are sold before they are even listed by an agent. I really don’t have an answer to any of this, I had really thought that most everyone had come to the simple conclusion that REO’s for investment or listing was and is a complete fantasy. Investors all want home runs and want to make 30% to 40% return on their investment with whatever financial risk that entails. Some will attempt to buy reels (pools of REO’s) which will net about a 25% return on a very large investment with maximum (millions of invested dollars) exposure. Real Estate agents just think that short sales are way too hard, they invest in the latest designation program hoping for the promise of a quick close to no avail. They all stare at the ball through the fence.
Short sales for investors have the highest yield with the lowest risk. For agents short sales provide the ONLY possible way to have a business. Yet they stare through the fence. “Why won’t the banks take 50% of fair market Value, they suck” so say the investors “I’d rather just work with REO’s”. They stare through the fence. “They shouldn’t be called short sales… they should be called long sales” so say the agents “I don’t want the banks cutting my commission”. They stare through the fence. The inability of agents and investors to help homeowners and close short sales is staggering! So blame the banks and pray that the next traveling medicine show has the cure for your real estate blues. All of this is simple for those who understand what is happening and how to work with them… for those who don’t – you may sit and stare through the fence.
KRISTIN DUNCAN
CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com
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NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae
NO REO | Freddie Mac | Fannie Mae