According to information made available by BankRegData.com, the value of OREO property held by U.S. banks has been falling from $17.51 billion in Q2 2015 to $8.45 billion by the end of Q4 2017– a change of more than 50%!
While the overall market climate is changing, it is worth noting that the pace is not the same everywhere in the country. According to data provided by RealtyTrac and their parent company, ATTOM Data Solutions, foreclosure rates for the entire United States stand at 1 in every 1,776 homes, while New Jersey clocks in at the highest with 1 in 605 homes and South Dakota boasts the lowest foreclosure rate at 1 in 11,082 homes as of March 2018. This tool shows the rate for each state in the nation.
With the waning of the foreclosure tides, it’s important to make the most of these assets and simplify the process of liquidating them. In the previous months and years, it may have made sense to have a variety of people and companies handling the onslaught of properties that were consistently streaming into the pre-foreclosure phase. This is no longer true. To simplify processes and consolidate services is to see increased efficiency and reduced costs and to do this, banks need an all-in-one solution.
One of the easiest ways to consolidate is to find a real estate company with experience in OREO distribution. It’s important to partner with a company that is able to work in most or all of the states where the asset properties are located. Real estate licensing requirements vary on a state-by-state basis so partnering with a single firm that can handle all needs will eliminate the backend processing and cost associated with having multiple vendors. If a bank is looking to offer these foreclosure properties in an auction setting, choosing a real estate firm that is also licensed as an auction house can further streamline this process.
RealtyHive offers these solutions to financial institutions throughout the country. From Maine to New Mexico, the Realty Hive team has more than 30 years of experience and has helped sell everything from multi-million dollar commercial buildings to small parcels of vacant land for government financial entities to local credit unions. See more here!