The combined REO (Real Estate Owned) inventory for Fannie, Freddie and the FHA increased by 22% in Q1 2010 from Q4 2009. The REO inventory (foreclosed homes) increased 59% compared to Q1 2009 (year-over-year comparison).
Even with all the delays in foreclosure, the REO inventory has increased sharply over the last three quarters, from 135,868 at the end of Q2 2009, to 153,007 in Q3 2009, 172,357 at the end of Q4 2009 and now 209,500 at the end of Q4 2010.
These are new records for all three agencies.................................
This does not count REO inventory from private lenders. I'm still not seeing much of an increase around here. The total inventory has been climbing slowly but it's sure not as high as I would have thought. Of course it does take a few weeks to a few months for the lenders to get those REO properties on the market. I was looking at one home that got foreclose on in early Feb and it just hit the market last week. That's nearly a 3 month gap from the foreclosure to the home hitting the market.
Now here's a bit from 60 minutes on mortgage walk aways.
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