Banks are outsourcing their REOs to companies who try to make a target of closing a certain percentage of their volume a month by selling to large investors and auction houses.
Large investors buy in bulk. They are the ones who are looking at entire portfolio, and selling off the ones right now that can turn a profit. The ones that don’t look immediately profitable, well, those are the ones you work, and work hard. Someone will take a lot of little properties they can sell immediately in non-bubble areas mixed in with a few toxic high value loans with big losses in high value areas. Its the way you deal with risk in portfolio management.
Banks aren’t dumb. Its just the sales guys have been getting more ear time than the risk guys the last few years. Times have changed, and so have the profit opportunites.
