Altisource Survey Finds REO Market Evolving to Attract Consumer Homebuyers
Altisource Portfolio Solutions SA recently polled 100 mortgage servicing professionals in attendance at the Five Star Conference and Expo in Dallas. The poll found that participants are optimistic that continued low interest rates will encourage homebuying (44 percent) and new financing options from lenders will broaden the buyer pool (39 percent).
The survey indicates that respondents believe offering more financing options to homebuyers for auction properties (38 percent) will be a factor in attracting a more consumer-based audience, followed by over a third of respondents (34 percent) who say education about the auction market and the use of real estate agents to promote auction properties (34 percent) will be needed to attract consumer interest in purchasing real estate-owned (REO) homes. Furthermore, 28 percent of respondents view having access to more robust market data and insights as the most important aspect to make the greatest impact in the REO market.
“The bank-owned real estate sector was largely untapped by individual home buyers until recently,” said John A. Vella, chief revenue officer of Altisource. “Today, individual buyers can benefit from smart financing options like rehab financing, otherwise known as a FHA 203(k) loan, which bundles the home purchase price and renovation costs into a single mortgage. This is a huge step in the right direction because it can help buyers purchase affordable properties from the REO market, especially at a time when inventory is low and housing prices are continuing to climb.”
The survey had 100 participants consisting of mortgage servicing professionals attending the Five Star Conference and Expo.