Foreclosure, REO, and Market Sales in Residential Real Estate
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- 作者：Peter Chinloy ; William Hardin III…
- 关键词：Online ; auctions ; REO ; foreclosure ; real estate transactions
- 刊名：The Journal of Real Estate Finance and Economics
- 出版年：2017
- 出版时间：February 2017
- 年：2017
- 卷：54
- 期：2
- 页码：188-215
- 全文大小：
- 刊物类别：Business and Economics
- 刊物主题：Regional/Spatial Science; Financial Services;
- 出版者：Springer US
- ISSN：1573-045X
- 卷排序：54
文摘
Assessment of lender and third-party bidder acquired properties at foreclosure auction is provided. Properties acquired at foreclosure auction by third-party bidders transact at a discount to lender dispositions of real estate owned (REO) properties. The discount reflects a reduction in costs associated with lender owned (REO) dispositions and uncertainty faced by third-party bidders. Moreover, there is a ranking in transaction prices among initial purchases by third-party bidders at foreclosure auction, REO sales, non-distressed property sales and the subsequent sales of third-party bidder acquired properties. Third-party bidder auction prices are below REO sale prices, which are below non-distressed property sale prices, which are below the subsequent sale prices of third-party bidder acquired properties. The price spacing by cohort is logical, intuitive and economically justified in a market with rational participants. Implications are also apparent for the measurement of price changes, net sale proceeds and returns to residential real estate.