Last month, Auction.com, the nation’s largest distressed real estate marketplace announced the results of its first-ever annual Disposition Summit Client Survey, which surveyed more than 60 bank and nonbank servicer clients along with representatives from government agencies involved in servicing and disposition of distressed properties.
The survey was conducted live. Respondents answered in real-time questions regarding their outlook for the distressed market and loss mitigation, along with biggest disposition priorities, challenges, and general default servicing pain points.
“Our clients continue to favor the innovative early disposition alternatives we have pioneered that tackle the property preservation challenge much more effectively than traditional disposition methods — not only by reducing risk for the servicer, but also by increasing positive impact on neighborhoods,” said Jason Allnutt, CEO at Auction.com.
High-level findings from the survey:
- 80% of respondents expect only slight changes in foreclosure and bank-owned (REO) inflow in the second half of 2019, with a 50-50 split between that change being an increase or decrease.
- 40% identified the U.S. West region as most likely to see an increase in distressed inventory in the second half of 2019, beating out the Midwest (23%), Northeast (20%) and South (17%).
- 71% plan to increase loss-mitigation actions in the second half of 2019, with 81% of those expecting an increase in distressed inflow planning to increase loss-mitigation actions.
- 40% identified Expedited Time to Sale as their top disposition priority, beating out Return on Investment, Loss Mitigation, and Avoiding Headline Risk.
- 46% selected Property Preservation as the biggest disposition challenge they face, beating out Aged Inventory, Pricing Execution, and Regulatory Hurdles.
- 64% list property preservation as the biggest servicing pain point.
You can view the entire report here.
If you'd like to discuss how you may be able to capitalize on these, or any other foreclosed properties, give me a call at (702) 637-2818 or shoot me an email.Questions? Contact Dave Rooker Today!