October 2012 - A new online service is available to assist banks in advertising and disposing of their Real Estate Owned (REO) properties. The website – reodeedwagon.com – was created by Community Bank Services, Inc., a wholly owned subsidiary of the North Carolina Bankers Association, and enables banks to showcase their real estate for sale, reaching an audience of potential buyers that extends beyond their local markets.
REOdeedwagon.com consolidates bank-owned property listings from throughout the country into a single searchable website. The listings are submitted and managed by the financial institutions that own the properties so potential buyers can be assured that properties are legitimate and information is up-to-date and accurate. Properties can be listed anonymously or linked to the financial institution’s brand. Financial institutions pay $49 per property listing, but there is no registration or membership fee to use REOdeedwagon.com. Potential buyers can use the website for free.
Numerous banking trade organizations have signed on to promote the online service to their members, including the Georgia Bankers Association. David Oliver, senior vice president, communications and marketing for Georgia Bankers Association, says that REOdeedwagon.com is a cost effective tool to support a financial institution’s marketing of their REO properties and can help institutions expand their reach.
“For a larger institution with many REO properties, REOdeedwagon.com can expose the homes to potential buyers throughout the country, including investors,” said Oliver. “Rural banks also benefit from exposure that extends beyond their local market and local advertising channels.”
Oliver also notes that REOdeedwagon.com can serve as a valuable technology resource for institutions that currently market properties through their own corporate websites. REOdeedwagon.com is self service and listings can be easily managed by staff that handle REO property sales.
“REOdeedwagon.com could serve as a replacement for banks’ internally developed REO websites and, as a result, free up information technology resources,” said Oliver.
REOdeedwagon.com represents one of several efforts in the industry to help financial institutions clear foreclosed properties off of their balance sheets and to support a housing market recovery. FHLBank Atlanta is also aiding these efforts by offering products to assist buyers of foreclosed properties with down payments, closing costs, and rehabilitation costs.
The Bank’s Foreclosure Recovery Product offers up to $12,000 in funding for the down payment, closing costs, and/or rehabilitation costs of a buyer purchasing a foreclosed property from the REO inventory of an FHLBank Atlanta shareholder, shareholder’s affiliate, or eligible housing associate. Up to $15,000 is available to eligible veterans and active-duty members of the U.S. military. To qualify, buyers must earn 80 percent or less than area median income, adjusted for family size, among other requirements.
FHLBank Atlanta shareholders that use the Foreclosure Recovery Product gain access to funding that can help them expedite the disposition of their REO property inventory while reaching new customers and driving new mortgage originations. The grant funding also serves as an “equity infusion” into the purchase transaction, reducing loan-to-value and risk for the lender.
For more information on FHLBank Atlanta’s Foreclosure Recovery Product, call 1.800.536.9650, option 3, option 3.
To learn more about REOdeedwagon.com, visit www.reodeedwagon.com
© 2012 Federal Home Loan Bank of Atlanta, All Rights Reserved. 1475 Peachtree Street NE, Atlanta, GA 30309
The Federal Home Loan Bank of Atlanta is not a registered investment advisor. Nothing herein is an offer to sell or a solicitation of an offer to buy any securities or derivative products. You should consult your own legal, financial and accounting advisors before entering into any transaction.