Foreclosure REO Bidding Wars

Beware of REO bidding wars. It’s amazing, that already there are quite a few bidding wars happening in the market and it’s quite disturbing. Why?

A lot of short sales have been sitting on the MLS during the last few months and it’s reported that typically lenders are only able to successfully complete about 6 to 7 percent of the short sales coming in. That means many of those short sales will be entering the market within the next few months as foreclosures and will bring home prices down even further down.

People are being mislead by ill advised real estate agents encouraging their clients to entertain counter offers in this down turning market! Many of these properties have been on the market for quite sometime and/or have a lot of properties in different stages of foreclosure. The listing agent is not out for the homebuyer’s best interest.

How would you be when all of these pre-foreclosures hit the market in the next 90 days. You will realize you’ve paid too much. You’ve lost instant equity and a down payment.

The end of the year is expected to yield a bigger wave of foreclosure properties due to the ARM resets that occurred the past couple of months. The next wave of foreclosures is being called the “tsunami” and it’s expected to create a very soggy market to a over-supplied real estate market.

It can’t be stressed enough that there will be a surge in foreclosures entering the market very soon.