I cannot believe it’s been almost five years since my most recent blog post here on Foreclosure Exposure!  As any close watcher of the default industry will tell you, the REO business is a shadow of its former self in most parts of the country.  The volume just dried up and blew away, especially here in northern California.

I had been a member of both the NRBA and the Open Door Institute (ODI).  ODI just quietly vanished one day – and I let my NRBA membership lapse back in 2013.

When I first got into the REO business in 2007, I was advised I should join REOMAC.  Unfortunately, REOMAC was closed to new broker members at the time – and it remained closed through the remainder of the REO wave.  A couple-few years ago, though, REOMAC once again opened its doors to new broker members.

Given that there’s been so little REO activity, I wasn’t in a rush to join – but now, almost half way through 2017, I am proud to announce that I am REOMAC’s newest member!

So why join now, when there’s still so little REO to be had?

The reason is that I believe it’s coming back.  It’s not coming back today, and it won’t come back to the same extent it did before – probably nowhere even close.  But when you look at where real estate prices have gone, and see where we are in the economic cycle, it stands to reason that when the next recession hits (within the next 1-3 years would be my bet), prices will sink and defaults will spike.

I remember when I got into the REO business in 2007 – I was probably 6-12 months late for the party to get hooked up with some of the larger servicers and outsourcers.  By joining REOMAC at this time, I hope to get a bit more ahead of the curve next time around.  When the next REO wave breaks, I want to make sure I’m riding it right from the get-go.