The FDIC released its Quarterly Banking Profile for the first quarter of 2011.
On the REO front [Real Estate Owned by Lenders] the FDIC-insured value of REO 1-4 family residential units on 3/31/11 was $13.2795 billion. That’s…
- Down from $14.0498 billion on 12/31/10, and,
- Down from $14.5527 billion March 2010.
One economist’s estimate places the total residential REO inventory for 1-4 family properties around 615,000. By any measure you want to use, that’s an enormous phantom inventory that will eventually have to work its way to local real estate markets.
My friends, we are not talking about this being over in a few months…
Lender Processing Services, www.lpsvcs.com, reports a total of 6.39 million loans delinquent or in foreclosure in April, or 12.11, which breaks down as:
- 2.24 million loans less than 90 days delinquent
- 1.96 million loans 90+ days delinquent
- 2.18 million loans in foreclosure process.
Living for free
What is surprising is the large percentage of loans delinquent more than 12 months that have not moved to the “in foreclosure process.” About 40% of loans 90+ days overdue—or about 800,000 loans—have been delinquent over a year.
No payment in over two years
About one third of the 2.2 million loans in the foreclosure process haven’t made a payment in over 2 years.