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Government-Owned Repo Homes for Sale Surging Sharply



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By : Allana Castro    99 or more times read
The number of government-owned repo homes for sale continue to surge substantially throughout the country.

As more government-backed home loans fall into default, more residential units are becoming repo homes in the U.S. Based on studies by a real estate analysis firm, the number of government-owned homes has been steadily rising over the past two years and now has reached about 46 percent of the total REO inventory in the country.

As of the latest reports, there are now more than 219,000 housing units in the overall list of repossessed properties owned by the HUD, Freddie Mac, Fannie Mae, VA and other government agencies that back residential mortgages. Of this estimate, VA accounts for almost 10,000 units or 4.4 percent despite serving a relatively smaller portion of the American population.

In addition to the units that are already counted as government-owned repo homes for sale, there are also plenty of federally-backed homes in default by two or more months. With the ineffectiveness of the Home Affordable Modification Program and the still high unemployment rate, a substantial percentage of these distressed homes are expected to eventually enter foreclosure and get repossessed.

Based on figures from two housing market analysis firms, 2.3 million homeowners throughout the country are currently in default by one month to three months and 69 percent of these borrowers hold mortgages backed by the FHA, VA, Fannie and Freddie. Analysts estimate that only a little over one-third of these distressed government-backed home loans would get rescued through HAMP or get sold through short sales, so a staggering estimate of 1 million homes would be again added to the already bloated federally-owned REO inventory.

There are also another 5 million borrowers who are currently in default by more than three months, based on reports, and 56 percent of these owe loans backed by the government. If again only about one-third are helped by foreclosure prevention programs, an estimated 1.8 million housing units will further bloat the huge listings of government-owned repo homes for sale.
Original Post: Government-Owned Repo Homes for Sale Surging Sharply on Repo-Homes.com.

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