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