REO Inventory Reaches All-Time High

By
Mortgage and Lending with AmeriFirst Financial BUYorREFI Team NMLS - 1330840

The national inventory of REO properties rose in March to a record high of 2.2 million. Foreclosure starts also increased by 33 percent month-over-month, according to the March Mortgage Monitor report by Lending Processing Services Inc. 

However, it’s not all doom and gloom for the housing market. The report revealed a significant increase in foreclosure sales, which is helping to chip away at the swelling inventories that are battering many markets. 

Also, delinquencies continue to decline, which is a sign of fewer foreclosures brewing in the pipeline. Delinquencies fell more than 11 percent in March from February  the lowest level since 2008 and a nearly 20 percent year-over-year decline, according to Lender Processing Services Inc. The total U.S. loan delinquency rate, which is for loans 30 or more days past due (but not in foreclosure), is 7.78 percent. 

States with the highest percentage of loans where home owners have fallen behind are Florida, Nevada, Mississippi, New Jersey, and Georgia. 

On the other hand, states that boast the lowest percentage of delinquent loans are Montana, Wyoming, Alaska, South Dakota, and North Dakota. 

Source: “Banks Build Record Foreclosure Inventory,” RISMedia (May 5, 2011)

Posted by

 

Michael Beckham
Mortgage Loan Orginator | NMLS 1330840
AmeriFirst Financial, Inc. | NMLS 145368
8476 W. Thunderbird Road, Suite 202, Peoria, AZ  85381

Office: 480-225-6699 | Direct: 480-289-7623 | Fax: 480-339-1635
mbeckham@amerifirst.us | www.buyorrefi.com

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Comments (1)

Laura Gray
RE/MAX Realty Group - Gaithersburg, MD

Michael

I firmly believe that the "Short Sale" inventory is skewing the numbers. Many jurisdictions are recording high percentages of "Under Contract" units , but sadly most of these are short sales that will be denied and end up in the REO numbers later this year or early next year.

May 05, 2011 07:03 AM