Firm Aims to Change Bank-Owned Home Sales.(Managing REO)

Byline: Ted Cornwell

New York-Helping potential homebuyers and investors navigate the process of buying bank-owned homes has become big business, especially given the current state of the housing market.

Many websites offer information about foreclosed homes that are for sale, but a new company entering the fray is trying to change the paradigm.

RealtyInvestorBid.com, based in Atlanta, is trying to contact bank REO departments and others in the mortgage industry to spread the word about their new service. The company is trying to generate interest from homebuyers through radio advertising and publicity from sources like CNN and newspapers. The MBA annual also offers an opportunity for the company to introduce itself to a larger audience, said Charles Willis, one of the firm's founders.

The company hopes to attract interest from banks selling foreclosed homes, unfinished construction and land. The company envisions that the bidding process can be done in a 14- to 20-day timeframe. That's a significant improvement over the time and expense a bank would face pursuing a foreclosure, a feature that may make RealtyInvestorBid an attractive route for pursuing short sales in today's environment.

The company's value proposition is that listing real estate-owned is free, as is registering to bid on property through the site. Instead of charging sellers for listing the property, RealtyInvestorBid hopes to make money by charging buyers when they purchase a property. The company plans to charge buyers 1% of the purchase price or several hundred dollars after they successfully bid on a home using the website.

"There is no charge to you or your seller," Mr. Willis explained, referring to the banks that own REO and their selling agents.