The year 2011 is predicted to see a peak of REO inventory or foreclosed homes owned by the banks. The total inventory of foreclosed homes that have not been taken over by lenders is around 2 million homes. InvestorCompsOnline can equip you with the Real Estate Comps needed to make wise investments during this season.
At this time it takes two years for a home to go from the beginning stages of foreclosure to becoming REO inventory. The two primary reasons for the delay in processing these foreclosures are: the huge backlog of foreclosed properties which are causing lenders to have to deal with a ton of legalities and paperwork that are involved with the foreclosure process. Second, is that lenders likely do not want to release alot of properties on the market all at once, which would affect property values.
The huge number of homes that will hit the market over the coming years will likely cause continuing downward pressure on home prices for the near future.
What should you do to be prepared for the surplus of properties coming available in 2011? Take advantage of your InvestorCompsOnline account to access the comps information and property data to make sure all of your investments are sold and turn into successful deals.