Thursday, July 14, 2011

BofA, JP Morgan Chase look local to sell foreclosures

Bank of America (BAC: 10.20 -0.10%) and JPMorgan Chase (JPM: 39.62 +0.58%) made a change to how they resell their inventory of foreclosed homes late last year, which could bring more business to minority-owned real estate firms.

In late 2010, both banks shrank the minimum radius a real estate agent could operate from a previously foreclosed property, or REO. Before bank balance sheets became flooded with delinquent properties, it was not uncommon for banks to allow an in-network broker more than 20 miles away to sell a property.

Now in order for an REO broker to receive an assignment to resell a BofA REO, the broker must now be based within 15 miles of the property. For Chase, the radius dropped to five miles.

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