The fiasco that helped to build the Bulk REO market was helped along by companies such as Country Wide who used the subprime in such a way that it eventually drove many families into foreclosure.
Over the past year or so, I have seen many changes in the hugely unregulated market of buying and selling bulk REOs.
At first, there were rampant rumors of Trillions of dollars in REOs that were available. Anxious brokers and buyers alike scrambled to snap up these deals before anyone else did.
First, there was the Non Disclosure Non Circumvent agreement (NCND) to make sure that everyone got a fair deal.
Then there was the Letter of Interest (LOI) to show interest from the buyer and then the Proof of Funds (POF) to show that the buyer had the funds to purchase the property.
I'm not sure what people had to gain by lying, but someway, somehow at least one of these elements always seemed to be fake. Either there really was no property or there was no real buyer there waiting with Trillions of dollars to buy REOs.
Many, many deals were put together and never materialized, which was the beginning of the changes that have been and continue to take place in this industry. For the first time, I have come across procedures and institutions that make sense.? The process is simple, it's fast and cuts out a lot of the uneccessary paper work and a lot of the BS.
There is no $5 Million or $10 Million dollar Minimum.? The truth is that I don't believe that there are a whole lot of people sitting around out there with $5 Million just waiting to buy foreclosures. That eliminates the average investor.? This new system is more on the common sense level and more people can get involved.? For more details, please visit my website at http://www.thereedfinancialgroup.com and click the real estate link.
