Bank-owned (REO) properties experienced a sharp decline in sales in October, says real estate data provide ForeclosureRadar. The decreases were felt the most in those states already hardest hit by the foreclosure crisis.
In Nevada, REO sales to third parties were down 41.5% in October from the previous month. Rounding out the top spots, Oregon experienced a 36.5% drop and Arizona and California each had a 26% decline.
Not coincidentally, October was also the month the robo-signing scandal came to light and when the largest banks, including Bank of America, Ally Financial (formerly GMAC Mortgage) and JPMorgan Chase all imposed temporary moratoriums in some or all the states to investigate their foreclosure processes.
It comes as little surprise, then, that the number of properties taken back by the banks also dropped dramatically.
ForeclosureRadar sees the REO sale decline as being temporary, but warns that scammers will be trying to come up with ways to convince consumers that they can help get back foreclosed properties. It would serve Realtors well to forewarn their local communities about this potential new scam.
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