REO

Cities across the country say they are seeing a disturbing new practice when it comes to foreclosures – more and more, banks are opting not to take possession of foreclosed properties because the costs of maintenance, repairs, and legal fees outweigh the still-declining value of the property.

Lake Mary, Florida’s JVI Appraisal Division, LLC, a nationwide provider of appraisals and valuations of foreclosed properties, has been awarded a contract with the U.S. General Services Administration (GSA) to perform appraisal services for the government.

Bank-owned property sales made up more than 10 percent of Massachusetts’ single-family home sales transactions in February, according to The Warren Group, a real estate data and research firm based in Boston.

Irvine, California-based real estate auction company Real Estate Disposition Corporation (REDC) announced on Thursday the launch of a new division: REDC Default Solutions. The new business group will focus on loss mitigation, REO asset management, and asset valuation for lenders and financial institutions.

Jacksonville, Florida-based Lender Processing Services, Inc. (LPS), a provider of technology and services to the mortgage industry, has released the results of a recent study that reveals the impact of foreclosure, or REO, sales on home prices.

Irvine, California-based Real Estate Disposition Corporation (REDC) has acquired the domain name, Auction.com, for $1.7 million. REDC’s consumer Website for lender-foreclosed home auctions, until now, has been USHomeAuction.

ForeclosureRadar, which tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for February 2009 on Thursday. The company said that Notices of Default have increased 21.

Mortgage Contracting Services (MCS), a property preservation and inspection services provider based in Tampa, Florida, announced on Thursday that it has been awarded a contract with U.S. General Services Administration (GSA) to perform property preservation work for the government.

As inventories of foreclosed homes swell, home builders across the country, particularly in the Sun Belt states hit hardest by the housing crisis, are pitted against REO properties for sales. Steve Ruffner, president of the Southern California division of new home builder KB Home, recently told the Wall Street Journal:http://online.

U.S. Housing Renewal is a newly formed organization, created to help struggling Americans reclaim homeownership and help American financial institutions strengthen their balance sheets. The Nashville-based group combines public and private funds for the purpose of purchasing non-performing housing assets from financial institutions and transforming these properties into two-year lease-to-own situations for families who have either lost their homes or have been unable to purchase in the current financial environment.