Sunday, February 1, 2009

REOs Expected to Flood Market


Mortgage lenders are likely to put their growing supply of repossessed homes up for sale in the months to come.

According to the Mortgage Bankers Association, 10 percent of home loans was either delinquent or in the foreclosure process at the end of September. Plus, Fannie Mae and Freddie Mac saw repossessions grow nearly 25 percent to 15,196 homes from the second quarter to the third quarter of 2008.

Lenders may have to reduce the principal balance on loans to do more than slow down the foreclosure process for many borrowers.

Source: Inman News, Matt Carter (01/26/09)

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