Let's face it, here in the Las Vegas valley (like across the nation), thousands of REO homes (real estate owned, or foreclosed properties) are building up for mortgage lenders who are swamped with work from the housing crisis we've been facing. While the lenders are not happy about the situation, they are taking action to more efficiently get through REOs, and this is good news for the real estate market and for home buyers. 
Mortgage giant Fannie Mae, for example, is moving to sell off that inventory faster than it has in the past, which may open up some interesting opportunities for Las Vegas area home buyers and their agents. In a new policy announcement, Fannie says it will now accept purchase offers for its REO immediately after listing, without notifying lenders or mortgage servicers whose loan files are under review.
Previously, Fannie gave lenders and servicers 15 days to find a better purchase offer following foreclosure, affecting all repossessions in which Fannie demanded the loan file on the house. This often exposed errors in underwriting or servicing, and required reimbursement for losses by the lender, but also slowed down Fannie's ability to move its REO through the process quickly. The 15 day delay lengthened the process - and sometimes kept properties out of reach of ready and willing buyers.
Not surprisingly, Fannie's portfolio of unsold acquired real estate has been ballooning lately. The company, now under federal control, took in more than 98,000 properties following foreclosures during the first three quarters of 2009, according to its most recent securities filing. During the same time period, it sold about 90,000 houses. In addition, because of a growing buildup of REO dating to prior years, Fannie was sitting with 72,000 unsold houses -- nearly a 7% jump from the same period last year.
In an effort to counter this, as soon as Fannie lists an REO property, it will be available to home buyers. And if Fannie ultimately sells for a loss (and if the loan file review turns up bad underwriting or other problems), Fannie plans to stick the lender with the loss. Either way, buyers and agents can expect earlier access to REO properties, and earlier decisions on purchase offers. Here in Las Vegas, that just might provide opportunities for heads-up buyers and agents looking for deals.
Are you in the market for a Las Vegas or Henderson home? Give Yonas Woldu a call. I'm your real estate expert in the Las Vegas Valley! Also visit my Vegas Real Property website and the new AskYonas website.
