Orange County REO Update
Posted by Leslie Eskildsen on Saturday, December 6th, 2008 at 12:53pm.We’ve been saying that the Bank Owned market is the fastest moving segment of today’s Orange County Real Estate market. Bank Owned homes can be found for sale in every city throughout Orange County and often represent some of the best bargains on the market. Recently though, there's been a decrease in the number of new REO homes for sale in the Orange County Multiple Listing Service (MLS) despite the reports in the media that foreclosure rates are increasing. Here’s what’s going on.
According to a recent newsletter published by the National REO Brokers’ Association – a nation-wide organization of REO listing agents – there are holdbacks on REO properties across every market in the country. These holdbacks are the result of the strangest and most severe crisis in the world market that anyone has ever seen. There is so much flux in the bank and lending industry that portfolios of foreclosed properties are being held from release into the marketplace. Because of the widespread turmoil in the financial sector, and with so many institutions up for sale, portfolios of REO properties are being auctioned off or traded from one institution to another.
What does this mean to you as a potential Orange County home buyer? Fewer REO listings have come on the market in the last 4 – 6 weeks, and fewer are predicted in the near future. However, these Bank Owned properties will need to be sold – so they will enter the market soon. These holdbacks are temporary. We predict that we’ll start to see more REO properties for sale in the Orange County MLS in the first quarter of the New Year. Let’s see if we’re right!
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