Servicers Seek to Build Consumer Interest in REO Properties
November 20, 2017
Mortgage servicers are increasingly working to make real estate-owned (REO) assets a more appealing and viable option for consumers, according to the inaugural Default Servicing Survey released by Altisource Portfolio Solutions.
Eighty-two percent of the 200 mortgage default servicing professionals polled for the survey ranked their investment in improving the condition of their REO asset portfolio among the most effective strategies for bring more consumers to the REO market. Ninety-three percent of those surveyed said their company was investing to improve the condition of REO properties under management, while 62 percent said their company was making a significant investment in this area.
Separately, 76 percent of servicing professionals surveyed pointed to offering financing options for REO, such as FHA 203(k) program, to make purchasing of REO assets more achievable.
“For many homebuyers, access to conventional financing and move-in ready condition are requirements to purchase their next home,” said Min Alexander, Senior Vice President of Real Estate Services at 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 homebuyers.”
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