All my old REO contacts are gone. I expect that segment to be back next year.
If it happens, it will likely be 2022 before that segment starts picking up. It takes a while for foreclosures to work through the system and become a bank-owned property. 12-18 months is typical, though it varies greatly by state and even lender. I have one lender who gives me 2055's while a home is in their foreclosure pipeline. Some homes are well into their 3rd year of this pipeline.
What could make this go-around even more wild is the proliferation of non-brick and mortar lenders since the last crash. A brick and mortar has local contacts, local feet on the ground individuals to help move a property through the pipeline up to disposition. ABC-bank.com doesn't. It is built on a totally non-personal business structure. But REO's are highly inter-personally intensive. How will quicken loans for example handle tens of thousands of foreclosures? I know they may have sold the paper, but depending on to whom, type of loan, etc, they still may have some involvement. Usually whoever has the servicing rights has to deal with foreclosures.
Commercial REO may in fact pick up before residential does. Many negative headwinds in commercial right now. Think of all the struggling industries right now--hotel, restaurant, retail, multi-family, even some industrial. Office may even get hit hard.
But as demand for retail and hotel and restaurant continues low, that means more and more people of course are spending more and more time at home. I haven't checked, but I imagine home projects are near an all-time high--additions for a home office, finishing out the basement, any repairs to take advantage of low interest, maybe updating kitchen because eating at home more, etc.
Will be a very interesting next 12-24 months in banking, and appraising! I plan to retire in 15 years or so. Don't think this wave alone will get me to shore, but it may give me some breathing room anyway...
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