bank owned open houseA few weeks back, we looked at the gradual rise in foreclosure activity across the country. Our primary lessons? Keep the REO rebound in perspective, but be prepared for the next wave as inventory shrinks and values climb. A new update from RealtyTrac underscores these takeaways, spotting increased REO movement in more than 33 states nationwide.

Here’s the latest, via a RealtyTrac news release:

33 states across the U.S. are experiencing an increase in REO activity, with North Carolina having the highest increase of 60%, followed very closely by the 57% increase that Oregon is currently experiencing. States seeing a 44% increase in REO activity include Illinois and Wisconsin. RealtyTrac published a report stating that other REO activity increases include the 23% increase for the state of Colorado, with the state of Michigan currently experiencing a 19% increase in REO activity.

The foreclosure process was taking months and even years for a property to completely go through in the past few years. However, the banks and financial institutions have streamlined the process, which has resulted in a decrease in the time for a property to move all the way through foreclosure. […] Businesses involved with foreclosures will surely be very busy for many years to come, since all the data continually suggests an increase in foreclosure activity across the U.S.

When — not if — this wave will reach Sacramento is an open question. Values are climbing significantly, which, on the one hand, has helped restore some owners’ equity in their distressed properties. On the other hand, those same values will motivate banks to move assets — aka “shadow inventory” — that have gone through a slower foreclosure process than the one in place several years ago. The market needs inventory, and REOs will pick up the slack sooner rather than later.

When they do, you’ll find Sacramento’s widest variety of REO listings for sale here at WarrenAdams.com, as always. Stay tuned…

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