By Noel Christopher
If you thought Chicago's blizzard of 2011 was bad, wait until you see the storm that is coming this spring. The OREO storm that is. OREO, or Other Real Estate Owned, is the term that banks use for the distressed properties they have on their books. RealEstateAuctions.com is poised to service banks and institutions nationwide through our innovative auction platform offering boots on the ground in all our auction markets.
We keep hearing about the “shadow inventory” in the real estate market, right? Well, a recently released Standard & Poor’s study shows that in Chicago there is a 54-month and growing inventory of distressed properties. Many of these properties are in the shadow inventory of bank properties that are waiting for one reason or another to be put out into the market. Lately there has been a hold on foreclosures due to the Robo Signing controversy, which has added to this shadow inventory. Also adding to this inventory are all of the previously foreclosed properties that were held back from the banks to make sure they filed the right paperwork. You can see why we are drawing comparisons with Chicago's blizzard of 2011.
Although the last four months in the distressed real estate market has been a little slow here in Chicago, that is all about to change. Industry sources tell me that banks are opening up the flood gates in the second quarter of 2011. So while we just had the great Chicago Blizzard of 2011, we are about to see a deluge of REO properties hit the market, much like the snow that recently buried us all. This is more than the market can absorb through the traditional Multiple Listing Service model.
RealEstateAuctions.com is the perfect solution to fill the need of banks by supplying an accelerated marketing option through auctions. A well-marketed auction puts the most eyes on a property with qualified buyers in the room, thus getting a great price for the bank and a good opportunity for a savvy buyer pick up a great deal.