Fannie Mae has over 160,000backlog of REO Inventory
"Fannie Mae repossessed more than 262,000 single-family homes nationally last year, and as of Dec. 31, its inventory of single-family REOs was almost 163,000". Source RIS Media 3-19=11
Many agents ask me if there is really a shadow inventory of REO properties being held back. If Fannie Mae has over 160,000 how many do you think Freddie, Ginnie, and HUD have? Now add all those in the lenders and investors inventory and we are looking at 3-5 more years no matter if defaults fall off to zero, which is not going to happen in the very near future.
Do the math:
Foreclosureradar.com reported over 8000 REO's going back to lenders in the last 120 days in Riverside & San Bernardino County, California.
5 Business Days in a week = 20 Business Days in a month = over 100 REO's A DAY going back to the banks. Have you seen 100 REO's come on the market in your MLS in the last 120 Days? No? Neither have I.
Recent headlines show slow downs of defaults and trust deed sales filed in February but do you wonder as I do if the lenders and GSE's are simply holding off filing before they clear out the backlog? Time will tell but I expect we will see many more REO's in MLS before the end of 2011
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