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Most buyers open to REOs

Realtor.com survey shows stigma around foreclosures has diminished

Nearly two-thirds (65 percent) of potential homebuyers surveyed by Realtor.com this month say they are likely to buy a home that's been through the foreclosure process, compared with 25 percent in October 2009.The vast majority of those looking at real estate owned (REO) properties planned to live in them -- only 6.9 percent of potential homebuyers said they were looking to buy a foreclosure as an investment, down from 13.2 percent in October.The "unexpected interest" in foreclosures is a result of reductions in supply, expectations that home prices will rise, and changing attitudes towards foreclosures, said Steve Berkowitz, CEO of Realtor.com operator Move Inc.The survey found that most (56 percent) Americans are concerned that a backlog of foreclosures that lenders are expected to bring to the market will lower home values."As lenders begin processing their distressed inventories and releasing them for sale at the local level, we look to them to move carefully and mon...