August 12, 2022

By now you likely have heard of the “mythical” Volume REO Trading Market. Before we move further, permit me to dedicate just a couple lines to spell out Volume REO for the benefit of those visitors who’re not yet common with this specific term.

The word jokergaming refers to True Property house that has gone through the foreclosure method and the bank had to purchase it straight back due to a not enough sale at people auction. Removed are the times when investors used to fight one another at the judge measures searching for that discount offer on an expense property.

As a result of this shortage of judge market house customers and the incredible charge of foreclosures throughout the US, a massive level of foreclosed catalog will be started back again to the banks every day.

The unsold True Property catalog that the banks are actually keeping it’s defined as True Property Held or REO. These are considered toxic resources that the banks don’t want to see in their books. They today become the obligation of the institution’s advantage supervisor, who’s given the monotonous task of getting these toxic resources off the bank’s publications by selling them via the MLS (Multiple List Service).

These qualities get listed on the MLS by regional Realtors; usually the representative who works the BPO (Brokers Value Opinion) or inspection for the selling bank gets the listing. After a Realtor gets a few of these listings below their belt, they become called an REO Agents. These REO Brokers are considered and handled almost like “Rock Stars” by the neighborhood investors and wholesalers.

That “master plan” manufactured by the lenders was supposed to perform like clockwork, but the poor housing industry and the banks getting greedier with the income prices of these resources has turned out to be an inadequate income method.

Comes today the legendary Volume REO… when these foreclosed qualities don’t provide via the MLS and REO Brokers, the banks package them in to “tapes” or “packages” which are nothing more than a listing of discounted qualities offered for sale.

The Volume REO videos and NPN (non doing notes) packages are given at high discounts to investors and hedge funds. The qualities get discounted around 50% or more of their BPO valuation or mortgage value in case of the NPNs. That produces an enormous “desire come true” possibility to create a lot of money in a brief time period for the clever and financed investor.

Why is this incredible trading possibility so great is also why is it therefore horrible. The lucrative thrill developed by Volume REO in the True Property and trading neighborhoods has brought ahead a wave of beginners in to this arena.

Unfortunately these “joker brokers” have setup store on the web and are raging out and misrepresenting solution that will not participate in them. They usually get these “bait” videos by using POFs (proof of funds) received by simple 3rd party investors who’ve the will and the methods to get action, but lack the foundation for real product.

As soon as you hear on one other part of the telephone “I’ve a $500MM tape choosing $50MM in CA”, don’t spend your breath to respond and hang up. These size videos get traded between banks and institutions, never with independents. Individuals who like to produce the others waste time by providing these silly packages should get a hobby performing anything else. As well as the fact banks don’t discount solution in CA, they don’t have to, it sells perfectly through the MLS.

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