Banks to unleash flood of REOs

by reggielal on February 25, 2009

 Inventories of unsold homes are likely to swell in coming months as lenders begin to push a growing backlog of repossessed homes up for sale — often in areas with  already high numbers  distressed properties.

While builders have cut back drastically on the production of new homes , it’s likely lenders will soon be putting pressure on inventories even if they succeed in efforts to keep more troubled borrowers in their homes rather than foreclosing on them.

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