US REOs have gradually risen in the past four months since hitting a 72 month low in April. The states surging in REO are NY, NJ, OK, FL & OH.
Nationwide Deeds in Lieu of Foreclosure increased 39% in 2012 from 2011 (all stats from Realty Trac fyi)
REO’s are done but not out
-Recent rise in foreclosure stats & scheduled foreclosure auctions in some markets will translate into bank repossessions in the next 6-12 months
-Rising home prices mean banks may be willing to tackle the increasingly costly and complex REO process to get a higher price out of the property down the road
Why are Foreclosure Starts & Auctions Rebounding?
-Pent up foreclosure activity from robo-signing, national mortgage settlement, & state legislation/court rulings
-Rising prices may help motivate foreclosure
Implications for realtors
-clock is now truly ticking on delinquent homeowners
-auctions are another source of pending distressed buyer/sellers in the form of investors
info from Realty Trac