Because the real estate market do not improve soon
While most agents and brokers as desperate for signs that the housing market recovers, these characters are not enough. Foreclosures continue to flow without seeing dissolved. And there is another set of statistics that the current historically high levels of available REO properties will not show in a short time - in fact, more records could REO is set to end.
To"Calculated risk" blog, make the case that a property after the bubble bursts, there is a correlation between recovery in house prices and unemployment. According to their study of housing bubbles in late 1970 and 1980, real house prices continued to fall this bubble bursting - basically until the unemployment rate has peaked. Then, prices have remained relatively stagnant for a few years later.
As most economists agree that unemployment is still high in the vicinity - and, bythis particular real estate bubble was much bigger than the other two above - suggests that real estate prices are not about to start up pulses in the coming months. This means that homeowners no longer be "under water" (the house is worth less than they should), and other borrowers who are struggling to afford their monthly payments. Each expert housing waiting REO properties much more than the pipeline passes.
In addition, the boom in foreclosures in the housing market is currentlyconnected by a spike in foreclosures in the commercial sector. The number of commercial properties, including offices and commercial buildings, should be solid facing foreclosure in the coming months. Las Vegas is ranked # 1 with commercial property in default on about $ 9.7 billion worth of distressed properties.
Michael Campbell, Managing Partner of Colliers International, said that the banks have asked that his company take the management of many commercial properties -everything from the earth fully developed around the golf course is 7000 meters, as well as Stallion Mountain Las Vegas.
Campbell also said he hoped to write new loans to lender, but may end up being impossible. "I would say that we are in a downward direction, but I see that is kindled," said Campbell. "With all due on these loans, there will be more defaults and foreclosures."
Will be nothing to stop these REO foreclosures? Probably not. The government and industryPrograms designed to foreclosure are simply not a great success. Moratoria as soon as the mortgage holders are not inevitable, and much more easily benefit from the bailout program. The refinancing will not help with interest rates where they are.
The good news is that REO sales are always a lot of activity on their properties from the cash-rich investors, who know much, when they see it. But with many more to come list street REO, REO agents andBrokers are still keeping very busy.
ASREOS.com, home of ASREOS, the American Society of REO specialists is growing by leaps and bounds in order to obtain a competitive advantage REO professionals and offers access to these lucrative income.