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�� VISIT US ONLINE @ DSNEWS.COM THE RISE AND FALL OF REO SALES REO sales no longer play the dominant role they once did in real estate transactions. The recent decline in REO sales, along with the decrease in inventory, is helping the market see an improvement in prices, according to a report from CoreLogic. REO sales showed a 35 percent year-overyear decline in October 2012 and a 60 percent decrease from the April 2009 peak, CoreLogic revealed. In addition, during the 12 months ended October 2012, REO sales averaged 51,000 per month, down from 65,000 a month in the previous 12-month period. The price of REOs has also gone up, averaging $135,000 in October 2012, an increase of 3 percent from a year earlier. Meanwhile, overall home sales increased 6 percent in 2012 to 4.2 million, with nondistressed sales seeing an 11 percent bump, CoreLogic reported. On the other hand, REO sales last year fell by more than 20 percent to 600,000. Short sales continue to play an important role in preventing foreclosure and increased 23 percent in 2012 to 370,000 completed transactions���their highest level since the housing market began to decline. As REO sales diminish, home prices benefit since REOs generally sell at a discount of more than 20 percent, CoreLogic notes. November 2012 data from CoreLogic shows REOs sold at 47 percent below the price of non-distressed homes, on average, while short sales were discounted about 25 percent. Lack of inventory also helped sustain home price increases in 2012. According to CoreLogic, months��� supply of inventory reached 12 months in July 2010, but as of November 2012, supply had fallen to 4.8 months. Looking ahead, CoreLogic expects 2013 to be ���poised for further recovery��� and projects prices will increase 6 percent over the year. According to the data provider, high affordability, diminishing REO sales, and low inventory will fuel the price gains expected ahead. As prices rise, more inventory will become available, CoreLogic explained, as underwater borrowers previously locked out of the market and opportunistic sellers begin to list their homes. It���s not just our name, it���s what we do. It���s simple: resolving home ownership issues begins with borrower contact and communication. Actually making contact and effectively communicating with all your delinquent borrowers is not so simple. Resolve���s multiple borrower contact strategies have been developed and proven over the last 30 years and lead the industry in effective right party contact. Our skilled team re-establishes open communication so that mutually acceptable options can be discussed and successfully implemented. Resolve Solution Services Corporation: Minority Owned Small Business SAS 70 Type II Certified Fully licensed Debt Collector nationwide FDCPA Certified and compliant Decades of success in mortgage loan servicing Resolve���s loss mitigation efforts lead the industry: �� �� �� �� �� �� �� �� �� �� �� �� �� Re-establishing Borrower Communication Multi-tier Skip Tracing Door Knock Services Loan Modi���cation Document Completion Short Sale Facilitation Deed-in-lieu Programs Cash-for-keys Programs Pre-foreclosure Auctions Charge Off Collection Borrower Informational Interviews Completing Borrower Budget Forms Occupancy Veri���cations Recommendations to Resolve Default KNOW THIS In 2012, 93% of foreclosure sales���bankowned or in the process of foreclosure��� were single-property sales to individuals, and just 7% were purchased by investors in bulk, according to RealtyTrac. mnewell@resolvessc.com || 214.334.2268 ResolveAd_3-15.indd 1 5/17/10 10:48 AM 35