While the government’s efforts to keep lenders solvent may have allowed them to hold off on selling some properties at fire-sale prices in 2008 (see part one), real estate brokers and auctioneers expect REOs to be big business in many markets this year.

FDIC-insured banks had $23 billion of REO inventory on their books at the end of September — a 134 percent increase from a year ago. That includes $11.5 billion in one- to four-family homes and $1.5 billion in property purchased with FHA-backed loans securitized by Ginnie Mae.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top