REO stands for “Real Estate Owned”-jargon for “bank owned property”. I went to a Keller Williams function for top producers in Utah and our guest speakers were two top producing agents from Las Vegas. These guys said that their REO listings are drying up. Banks are reassigning staff from asset management (handling the bank owned properties) to asset modifications (handling short sales and loan modifications). This is the best real estate news I have heard in a long time. If the pipeline of distressed properties dries up, inventories will return to normal and prices will stabilize. Apparently the same thing is happening in the Phoenix market. A friend of mine just shared that his lender offered to modify the mortgage on his home at Promontory to 2% and he was thinking of keeping the home instead of selling it as a short sale. Park City real estate trends are usually 12-18 months behind the larger markets, so this could be the first light we have seen at the end of the tunnel in a long time.
Park City Real Estate