Number of Foreclosed Homes Keeps Rising

Wall Street Journal (06/02/08) P. A3; Hagerty, James R.
First American CoreLogic reports that lenders and investors in mortgages owned approximately 660,000 foreclosed homes--or one in seven previously occupied homes available for sale nationwide--as of the end of April, an increase from 493,000 in January and 231,000 in January 2007. Increasing defaults have expanded the inventory of bank-owned homes, otherwise known as REO for "real estate owned." By slashing prices, lenders have managed to sharply boost sales of such homes in cities hit hard by foreclosures, including Detroit and Sacramento. Integrated Asset Services LLC Chief Executive David McCarthy notes that some lenders are now dropping prices as often as every 20 days on properties that are not moving.