We hear frequently about how foreclosures are skyrocketing and how banks are taking back more and more properties. Here are some good numbers quantifying exactly what is going on with bank-owned properties. The numbers are staggering. The number of properties Lenders are currently holding has almost tripled since January of 2007 up to 660,000 from 231,000. Also interesting to note is the comment that banks are cutting prices as often as every 20 days to get them off their books.
All investors should be actively researching and chasing after bank-owned properties. Banks don’t want these properties and are taking back more and more of them and can’t have them sitting on their books forever.
Bank-Owned Homes Continue to Surge
The number of foreclosed home owned by lenders is rising, even though banks are increasingly willing to do what it takes to sell properties.
Lenders and investors in mortgages owned about 660,000 foreclosed homes in April, up from 493,000 in January and 231,000 in January 2007, according to First American CoreLogic, a research firm. That’s one in seven previously owned homes currently for sale nationwide.
Some lenders are cutting prices as often as every 20 days on homes that aren’t selling, says David McCarthy, chief executive officer of Integrated Asset Services LLC, a Denver-based company that helps banks value and sell REO homes.
Source: The Wall Street Journal, James R. Hagerty (06/02/08)
Posted by Carter Brown
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