Practitioners Take Foreclosure Freeze Hit
Real estate practitioners are among those feeling the pain of the foreclosure freeze.

Natalie Wilson, an associate with Coldwell Banker Residential in Tampa, Fla., learned last week that 42 of her 130 REO listings had been frozen.

Practitioners such as Wilson who specialize in REOs are often responsible for upkeep and rehabilitation. They invest their own money and get paid by the bank when the sale finally closes. Wilson says she spends as much as $1,000 per listings on rehab and upkeep, so this freeze on sales is a real financial drain.

“There will be a lot of [practitioners] who do these listings for banks who will turn around and say they just can’t afford it,” Wilson said. “It’s a significant amount of money, and you do rely on those closings to offset the expenses you incur.”

Slowing sales also hits small practitioners hard. Corin Hall, an associate with Elite Brokers Real Estate Group LLC in Dade City, Fla., says she’ll be alright as long as banks resolve the problems quickly, but the situation could be difficult to manage if it spreads to more banks and properties.

Source: Tampa Bay Business Journal, Michael Hinman (10/18/2010)