How Bank REOs Will Be Different Post Pandemic
Q: When the foreclosure moratorium finally ends will there be lots of bank owned property opportunities? Rose, Brick, NJ
A: There will certainly be more bank-owned properties (aka REOs) than there are now because foreclosure sheriff sales stopped during the pandemic. However, since home inventory is still so low in most places in the US, we should expect banks to be greedy–looking for top dollar for every property they foreclose on and then sell. I anticipate that banks with their REOs will make the same mistakes that many home sellers are making now as home prices continue to climb–overpricing homes hoping someone will pay higher than market price. If and when that happens, it’s important to be patient, because when sellers get greedy and overprice, even in today’s market, homes will sit unsold and sellers (in this case banks) will be forced to drop prices precipitously later on which is when there is the potential for bank-owned REO bargains. Thanks for your question, Rose.
For more real estate tips and information visit my blog at geraldlucas.com.