Tuesday, December 13, 2011

Fitch: Properties average eight months in REO

The Federal Housing Finance Agency is working on new ways to sell these homes. Fannie Mae and Freddie Mac currently own around half of them, according to Fitch. Analysts said bulk sales would be "a key part" of the housing market for the next two years.
If they want to sell them fast, why don't they just sell them a auctions instead of making them REO's?
A typical foreclosed home will spend eight months in REO before being resold, Fitch Ratings analysts said.
More than 2 million of these properties are somewhere in the foreclosure process, Lender Processing Services (LPS: 17.77 -3.69%) estimates, and more are coming. The majority of the backlog could take as long as two years to clear, according to Fitch as the current foreclosure timeline can last more than 12 months, before the time the property will spend in REO.
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