Western Markets Most at Risk for Increased Foreclosure Inventory in Second Half of 2019 According to Auction.com Client Survey
Irvine, Calif. —July 1, 2019 — Auction.com, the nation’s largest distressed real estate marketplace, today announced the results of its first-ever annual Disposition Summit Client Survey, which surveyed more than 60 bank and nonbank servicer clients along with representatives from government agencies involved in servicing and disposition of distressed properties. The survey was conducted live at the fourth annual Disposition Summit hosted by Auction.com April 1 and 2 in Dallas, Texas, and respondents answered in real time questions regarding their outlook for the distressed market and loss mitigation, along with biggest disposition priorities, challenges and general default servicing pain points.
High-level findings from the survey:
• 80 percent of respondents expect only slight changes in foreclosure and bank-owned (REO) inflow in the second half of 2019, with a 50-50 split between that change being an increase or decrease
• 40 percent identified the U.S. West region as most likely to see an increase in distressed inventory in the second half of 2019, beating out the Midwest (23 percent), Northeast (20 percent) and South (17 percent).
• 72 percent plan to increase loss mitigation actions in the second half of 2019, with 81 percent of those expecting an increase in distressed inflow planning to increase loss mitigation actions.
• 40 percent identified Expedited Time to Sale as their top disposition priority, beating out Return on Investment, Loss Mitigation and Avoiding Headline Risk.
• 46 percent selected Property Preservation as the biggest disposition challenge they face, beating out Aged Inventory, Pricing Execution, and Regulatory Hurdles.