I sell bank foreclosures...ask me anything!

[Jack Sarcia]

Hey everyone, I have been selling bank foreclosures since 2009. I never asked for this LOL it was thrust upon me. 

Anyway, I have a recurring character in my life... The cash investor who "saw the property on zillow" but doesn't really understand what REO means or how the banks operate.

If anyone has question about buying a bank foreclosure, fire them off. I will do my best to answer. I am looking to build up a network here on BP. In a way I am a "long time listener, first time caller" jumping into the forums here. HMU!

[Jack Sarcia]

Hey Dennis, solid question! 

Back when I started selling foreclosures, the REO (real estate owned) inventory was crazy high. In 2020, it came to a near complete stop.

Banks go through the foreclosure process typically taking 4-8 months. Once complete, they will assign the property to me. I have a window into the PRE REOs coming to me, and lately, that list is getting LONG. This is due to all the foreclosures that have been tied up in land court since the pandemic. 

An even stronger indicator is that I am getting more and more orders to do BPOs (broker price opinions) for "banks". This is when I go out and value newly vacant REOs. The upward trend of those orders suggests there is a WAVE of REOs coming. Most of which are tied up in court from 2020. While I don't expect another 2008 size wave, I do see a large hold back of inventory coming to market. 

Short answer- soon!