How “Foreclosure Realtors” are Cashing In on Bank REOs

Foreclosure cleaning companies aren’t the only ones profiting off the foreclosure crisis. As the New York Times article, Homeowners’ Hard Times Are Good for the Foreclosure Business, explains, realtors who handle foreclosures are cashing in also. Proof?

In 2006, there were 100,000 foreclosed homes on the market nationwide; presently, experts say, there are upwards of 700,000. And, according to the aforementioned article, ” the [foreclosure] flood will continue for several more years, and probably has not peaked yet.” Scary for homeowners. Good news for those who build a business on stats like these.

Foreclosure Realtors and Real Estate Investors Cashing In

Forget paying full price, REO is where it’s at. REO is the acronym for Real Estate Owned. It’s what banks call foreclosed properties (they don’t like to use the nasty phrase “foreclosure”). A whopping 45% of the homes sold this past February were REOs, according to the National Association of Realtors.

Cash for Keys: Get’em Out, Get It Listed and Get It Sold!

Never heard of the term? Cash for keys is a term realtors have given to homeowners they pay to move when a home has been foreclosed on. Why would  the do this you may be thinking. It’s quicker, easier and cheaper than going through the courts. This means realtors can get the property listed and sold quicker, which of course means more money from them.

Many realtors have switched the focus of their careers to capitalize on selling foreclosures, figuring that someone has to move these properties. Why not them?

Copyright © 2009: Foreclosure Business News