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I N D U S T R Y I N S I G H T
Technology has made the mortgage industry faster, more
affordable, more compliant, and more convenient—and it's not
done yet. The industry's top players weigh in on the power of
technology, how to harness it, and where it's headed.
A Path to Stabilization
By Jason Allnutt, Auction.com
Increasingly, financial institutions are
recognizing how distressed properties sold in
the open market create greater competition
among buyers and yield a greater net return,
helping communities become more stable
and home values increase. By utilizing online
marketplaces, banks can see these results
sooner, adding additional benefit for themselves,
buyers, and neighborhoods within their local
communities.
e REO industry has taken steps to
mitigate the impact of distressed homes,
and while initiatives like requiring Plexiglas
(instead of plywood) over the windows of vacant
properties does have a positive impact, the
only meaningful way to make an asset valuable
again is to convert it back into a stabilized
property. Distressed homes—no matter the
cosmetic fix—can become havens for crime.
More important for a financial institution is the
associated reputational impact of evicting an
occupied property within the very communities
it serves.
To mitigate this reputational risk and more
quickly (and profitably) convert distressed
assets into stabilized properties, financial
institutions are leveraging online marketplaces
as an alternative disposition strategy. Much
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