DSNews.com story is HERE.
Looking at information from the GSEs and HUD, Radar Logic says the government currently owns 209,500 homes as a result of foreclosure, and the company estimates there could be an additional 9,560 homes held by the VA, for a total of 219,060 government- owned foreclosed homes....According to estimates by Zillow and Lender Processing Services, 2.3 million U.S. homeowners are 30 to 90 days delinquent on their mortgages. Based on data from the U.S. Treasury Department, Radar Logic estimates that 69 percent of these mortgages are owned or guaranteed by the GSEs, the FHA, or the VA.
In its calculations, Radar Logic assumes that 35 percent of these mortgages will be cured or end in short sales rather than becoming REO, which means 1 million of these homes will enter the federal government’s REO inventory.
Another 5 million homeowners are more than 90 days delinquent or already in the process of foreclosure. Data from the Treasury indicates that 56 percent of these loans are owned or guaranteed by federal agencies. Assuming again that 35 percent will result in delinquency cures or short sales, Radar Logic projects 1.8 million of these homes to be added to the government’s REO holdings.
Taken together, there are currently 3.1 million homes in the federal government’s REO inventory or headed toward it, Radar Logic concludes.
Prior DSNews.com story with projected total REO inventory data is HERE.
Originally created and posted on the Oregon Housing Blog.