Market Update on REO's

We have recently seen a decrease in the number of new foreclosure filings (See the CA Foreclosure Report http://www.foreclosureradar.com/foreclosure-report/record-number-foreclosures-cancelled).  We also hear the the number of seriously delinquent loans continues to rise. (See the ForeclosureRadar facebook page 7/12/10).  If you are a REO listing agent or working with investors your question is probably the same as ours... "what's up??"

We sent this question to numerous sources. We chose some asset managers, bank executives, top REO agents and even a contact at Fannie Mae.  The best repsonse that we received was this:

"My thoughts are that this is for the most part due to HAFA. Now that most servicers have systems in place to administer the program they are removing delinquent loans from the foreclosure pipeline to allow a reasonable short sale time period. Predictably (also my opinion) the period would be expiring just AFTER the November elections so there would be less political blowback as those properties that don't conclude with a successful short sale are taken to Foreclosure and ultimately, REO"

Since Realtors and Investors are always trying to speculate where the market is going and where the opportunities may be in the future we thought we would share this with all of you.