The Low Cost Way to Sell Your REO Inventory Fast.(Real Estate Investment )(Hudson & Marshall)(RealtyBid.com)

With REO numbers running rampant, alternative marketing strategies are becoming a must for lenders and servicers.

Auctions are being described as one of the best alternative disposition methods in the industry. More people are embracing the auction method, including real estate brokers and agents, title companies, mortgage brokers and mortgage companies.

These industry professionals see that there are different programs and opportunities for all through indirect buys, sealed bids and studio auctions, just to name a few, according to speakers at 2007 Five Star Default Servicing Conference & Expo in Dallas.

Auctions companies such as Williams and Williams, RealtyBid.com and Hudson & Marshall are making their programs known by educating those who work within the REO community. The truth is, according to the companies, auctions provide the least amount of friction and the least amount of fear for buyers.

Many economists believe the persistent glut of houses on the market will likely drop prices by 7% this year, making it an ideal buyers' market. In fact more buyers are purchasing foreclosed or "bank owned" properties at auctions because they can find even better discounts on homes.

Each property is not treated as a commodity. The auction model is retail driven. Williams and Williams conducts auctions every 30 days. People can bid by cell phone, online or through on-the-lawn auctions.

Auctions are 100% reliable, the company's president and chief executive said at a recent meeting of the New York Financial Writers Association.