REO Properties Market Overviews

In today’s mortgage market, the inventory of homes going to REO continues to rise at an all time high. The predicted tsunami of homes likely to go into foreclosure over the next 18 – 24 months will only exacerbate the current inventory problem. Even as loan modifications, short sales, auctions, and other effective methods of property disposition help lessen the growing inventory, they are not enough to keep up with the new inventory coming into the REO market from foreclosures. As a result, larger inventories mean longer turn times. When combined with extended maintenance periods, a variety of problems may occur with related costs escalating far beyond acceptable limits.