REO

Rowell Auctions, Inc. has launched a new national Internet radio show that will educate listeners about property auctions. The show will feature top real estate and auction leaders from across the country, and will target potential bidders, real estate agents, sellers, and other auction firms. Stanley Tate, CEO of Tate Enterprises in North Miami, Florida and former head of Resolution Trust Corporation (RTC), was the first guest featured on the radio show's inaugural broadcast March 18.

For many homebuyers, mortgage financing is hard to come by these days. Lenders have tightened up credit requirements in an about-face from the lax lending of pre-crisis days that's fueled record-high delinquencies. According to two separate industry surveys, cash transactions set a new record in February, accounting for 33 percent of home purchases. One report notes that the increase in cash purchases paralleled a rise in activity among investors who have their sights set on distressed properties that can be scooped up at a discount.

Default Resource, a provider of REO management, valuation, and loss mitigation services, has announced the hiring of James Zeldin as EVP and chief sales officer. Zeldin brings more than 20 years' experience in default management, origination services, REO management, and business process consulting to Default Resource. He previously served as SVP of business development for Altisource Portfolio Solutions and its predecessor company, Ocwen Financial Corporation.

Existing-home sales fell in February following three straight monthly increases, according to data released by the National Association of Realtors (NAR) Monday. Sales of previously owned homes dropped 9.6 percent last month to an annual rate of 4.88 million. The latest figures came in much lower than analysts were expecting. NAR attributed the February results to the twin headwinds of tight credit and appraisal problems that resulted in contract cancellations. Distressed homes accounted for nearly 40 percent of the pre-owned sales volume in February.

Southern California's distressed home sales - the combination of foreclosed home sales and short sales - made up more than half of the region's resale market in February, according to a new report from DataQuick. Foreclosure resales accounted for 37.1 percent of resales last month, while short sales were an estimated 19.8 percent. Absentee and cash buyers, primarily investors, are purchasing these homes in record numbers, but DataQuick expects this spring will see an infusion of more traditional buyers.

House Republicans may have succeeded in passing legislation to end federal housing programs that are intended to provide assistance to unemployed homeowners and support efforts to clean up vacant foreclosed homes, but their Democratic counterparts aren't going to take it lying down. Rep. Barney Frank, the top-ranking Democrat of the House Financial Services Committee, has introduced legislation that would require the biggest banks and hedge funds to cough up $2.5 billion to keep those very same programs alive.

Two recent studies about investors who buy vacant and deteriorating homes and resell them paint vastly different pictures of the effects such actions have on neighborhoods. A report from the Federal Reserve Bank of Cleveland says many cities are being hurt by investors who purchase homes and sell them quickly without regard for back taxes on the property. But another report says investors who play the game fairly are actually contributing to the growth and overall health of ailing neighborhoods and helping families at the same time.

Radar Logic's 25-metro-area RPX Composite price slumped to its lowest value last week since its peak in June 2007. Based on data from home sales that closed during the 28 days ending January 3, 2011, the value was at $183.18 per square foot. That's 34 percent lower than the 2007 peak value of $278. The company says last week's reading is lower than the price for any other date since May 14, 2003.

The U.S. House of Representatives voted Wednesday to pull the plug on HUD's Neighborhood Stabilization Program (NSP) and rescind $1 billion in grant money that has not yet been awarded. The NSP Termination Act (H.R. 861) passed the House with a 242-182 vote. It now moves to the Senate, where it is not expected to be met with such favor. White House officials again indicated that President Obama will veto the bill should it make it that far.

Active Data Technologies Inc., a Florida-based creator of custom REO Web sites, released a statement this week announcing that the company recently completed a pilot REO offer management platform for Fannie Mae. The program, available through the GSE's HomePath Web site allows agents representing homebuyers or investors to submit offers online to purchase Fannie Mae-owned properties in three test markets: Orlando, Florida; San Diego, California; and Wayne County, Michigan.