Distressed properties: still bountiful and ripe for the pickin’

Leveraging new services and networking are key to success, Connect panelists say

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

SAN FRANCISCO -- A dwindling supply of foreclosures may be prompting some brokers and agents to turn away from distressed properties. But real estate pros shouldn't pivot too abruptly, according to a panel of experts who discussed the future of the distressed inventory at Real Estate Connect. The supply of distressed loans and foreclosures will remain bloated for some time to come, they said, so agents should consider using new services that are making it easier to hone in on them. Following the low point of the 1980s real estate slump, the housing market’s share of nonperforming loans did not return to a normal level for 13 years, said Karl Falk, president and CEO of Summit Mitigation Services. With that in mind, the glut of distressed loans and foreclosures is likely to remain for many years to come, he said. Why? Because, according to Falk, the peak default rate of the most recent real estate crisis was four times as high as the peak rate of the slump in the 1980s. ...