R.E.O. Properties Reach their Highest Point Yet

The number of R.E.O. properties has reached a peak of 2.2 million. Bank owned properties (R.E.O.) are a huge part of the current real estate market and make up a large percentage of sales. Although the number of foreclosures sales has been increasing, so too have the number of foreclosures— according to Realtor Magazine, 33% month over month. Not surprisingly, the 2 states that lead the pack are Florida and Nevada. Like I said in one of my previous entries, roughly one in every one in every seventy-six homes is bank owned.

I think these statistics make it clear that we are nowhere near market recovery. A sharp increase in R.E.O. sales is not enough (most buyers are speculative investors hoping to get a retune in a few years). For the market the rebound, the number of foreclosures must go down. People must pay their mortgages on time and in full.