I've been getting a ton of questions lately regarding Foreclosure or Bank-Owned properties.

The biggest question: where did all the bank owned/reo inventory go?

Over the past few months the number of "new" bank owned properties to hit the market has decreased significantly here in our area.

Speculation is that the banks are holding on to this inventory and just releasing a small number of properties in order to drive up resale values.

Is this actually the case? Could be, but I also believe there are a number of successful "Loan Modifications" taking place. The banks aren't in the business to "take back" a large number of homes and then turn around and sell them. If they can process a successful loan modification it benefits them and more importantly the current homeowner.

I also believe that investment groups are buying the foreclosed homes at auctions prior to the bank taking them back as foreclosed inventory. You can read more about that and get an update on Foreclosure here in California by clicking here!

So what does the future hold for the reo inventory ... I don't think anyone has a solid answer and only time will tell. Are more foreclosed homes going to be released for sale? Yes. How many and when? Not sure.

Make it a great week!

Brought To You By Randy Charlton of Century 21 Home Realtors

Buying Foreclosure REOs

Forget about chasing down short sales and dealing with lenders who don't want to deal. Instead, I suggest going straight to the source, which is often the very same lenders who refused to deal but now must. These are lenders who have taken back a home in foreclosure.

Regardless of government-sponsored voluntary bail-out programs designed to help home owners in foreclosure -- the programs which are rightfully called "too little, too late and too voluntary" by The New York Times -- foreclosures will continue to rise throughout 2008. This means more banks will end up owning properties, which is bad news for sellers in default and bad news for the banks but could mean good news for first-time home buyers and investors.

The deals are out there. But don't make the mistake of thinking the bank is going to hand you a home on a silver platter. Banks hire lawyers to draw purchase contracts that favor the bank. And banks hire hard-nosed negotiators. Make sure you hire a real estate agent versed in dealing with REOs, an agent who will represent your interests over the bank's ... Be sure to contact Randy Charlton with Century 21 Home at 909-938-9568 or visit my website at www.TeamCharlton.com.

 Brought to you by Randy Charlton of Century 21 Home Realtors.