Most mortgage servicing professionals (93%) say their firms are investing in improving the quality of REO properties under management; for 62% that’s a significant investment
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Most mortgage servicing professionals (93%) say their firms are investing in improving the quality of REO properties under management; for 62% that’s a significant investment.
The inaugural Default Servicing Survey by Altisource Portfolio Solutions found that the trend is for servicers to spend money to make their assets more attractive to homebuyers, especially as the tight inventory in many areas is boosting prices.
“For many home buyers, access to conventional financing and move-in ready condition are requirements to purchase their next home,” said Min Alexander, Senior Vice President, Real Estate Services, Altisource. “Distressed properties, including REO, have historically been marketed in as-is condition, at times limiting the potential buyer pool. Servicers are changing this by increasing investments to maintain or improve the condition of these properties, attracting more owner-occupant home buyers.”
Mortgage servicers ranked their top three most-effective tactics to attract buyers to the REO market, the survey reveals.
Most (82%) said improving the condition of REOs; 76% said offering financing options such as FHA 203(k) to make purchase more achievable; and 43% said offering the buyers the opportunity to work with a real estate agent.
The survey also highlights the importance of using technology when marketing REO properties.
Online platforms including easy-auctions is considered by 95% of respondents as having a positive impact on participation in the default market.
Providing useful consumer-focused information such as local schools and virtual tours are also valuable tools.
“The REO market offers both servicers and consumers a compelling opportunity to meet each other’s needs and solve for today’s supply-demand disconnect,” said Marcello Mastioni, President, Real Estate Marketplace, Altisource. “Technological innovation, such as online real estate marketing platforms like Hubzu, can help savvy buyers discover a new pool of properties. Servicers’ investments in consumer-friendly features, along with improvements in property conditions, are broadening home buyers’ horizons and encouraging them to consider the REO market.”
The inaugural Default Servicing Survey by Altisource Portfolio Solutions found that the trend is for servicers to spend money to make their assets more attractive to homebuyers, especially as the tight inventory in many areas is boosting prices.
“For many home buyers, access to conventional financing and move-in ready condition are requirements to purchase their next home,” said Min Alexander, Senior Vice President, Real Estate Services, Altisource. “Distressed properties, including REO, have historically been marketed in as-is condition, at times limiting the potential buyer pool. Servicers are changing this by increasing investments to maintain or improve the condition of these properties, attracting more owner-occupant home buyers.”
Mortgage servicers ranked their top three most-effective tactics to attract buyers to the REO market, the survey reveals.
Most (82%) said improving the condition of REOs; 76% said offering financing options such as FHA 203(k) to make purchase more achievable; and 43% said offering the buyers the opportunity to work with a real estate agent.
The survey also highlights the importance of using technology when marketing REO properties.
Online platforms including easy-auctions is considered by 95% of respondents as having a positive impact on participation in the default market.
Providing useful consumer-focused information such as local schools and virtual tours are also valuable tools.
“The REO market offers both servicers and consumers a compelling opportunity to meet each other’s needs and solve for today’s supply-demand disconnect,” said Marcello Mastioni, President, Real Estate Marketplace, Altisource. “Technological innovation, such as online real estate marketing platforms like Hubzu, can help savvy buyers discover a new pool of properties. Servicers’ investments in consumer-friendly features, along with improvements in property conditions, are broadening home buyers’ horizons and encouraging them to consider the REO market.”
