The current glut of REO Homes at banks and lenders is reaching staggering proportions. This is definitely a huge problem for the banks holding the REO inventory. The banks’ problems are a boon for auctioneers and brokers handling this unprecedented inventory. The boom is quite apparent from the number of new real estate brokers rushing to sign up with lenders as approved REO brokers and agents. Lenders are also using the services of several local and national REO auctioneers to handle their ever bulging inventory.

Apparently LA Times seems to have tied with another auctioneer to create Zetabid. The entry of new players to assist banks is a positive step as banks have been struggling to reduce the numbers homes they currently hold. Zetabid is taking a new approach to REO auctions. According to the press release:

Zetabid opens up the auction market of REO homes by combining aspects of both traditional and online auction forums. With this new approach, potential buyers can bid in-person at Zetabid auctions, via live webcast, or have their agent submit an offer.

Opening up the auctions process will definitely go a long way in getting competitive bids for the REO homes while also increasing the number of sales. Zetabid also plans to have no off-market time that the majority of other auctioneers require. They also plan to allow buyers to work with their real estate brokers and agents to handle their purchase. In what is a boom time for companies handling bank owned REO inventory auctions, Zetabid seems to be well positioned to capture a good market share with it’s refreshing approach to clear the Banks’ REO logs.