According to Freddie Mac, REO (bank owned homes) inventory is down from it’s peak. Back in 2010 at the peak, there were about 75,000 homes in their inventory and now they are at about 53,000, about a 30% decrease.
With the economy picking up and unemployment decreasing, foreclosures are slowing and there is less housing inventory on the market with more buyers so they are snapping up homes that do come on the market.
Some of the banks are also starting to work with the mortgage holders as soon as a payment is missed in an effort to keep them in their home rather than go through a foreclosure.
This has all resulted in a smaller inventory of REO properties.
My very patient buyer was overjoyed to close on her Burnsville condo on Friday afternoon! The condo was a bank owned property and as is the case often times with bank owned properties there were a lot of challenges to overcome. We persevered and were able to successfully close on the deal. She was planning to start some small renovation work shortly after closing with the hope of being able to move in within a few days time. Congratulations on your new home!