More Real Estate Owned (REO) and Foreclosures coming:
Foreclosed property held by U.S. banks increased 12.5 percent to $41.5 billion during the first quarter of this year perrecent analysis by SNL Financial. According to SNL analyst Andrew Schukman, during the first three months of this year, one-to-four unit family properties in the process of foreclosure but not yet to OREO, or REO, status increased 9.1 percent to $78.6 billion.
With these repossessions coming down the pipeline, Schukman says OREO as a percentage of banks’ assets will likely continue to grow as additional properties complete foreclosure.
