BOA to increase foreclosure rate from 7500 per mo. to 45000 per mo.

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Submitted by Arraya on March 30, 2010 - 2:01pm

A 600% increase in foreclosures
I attended a local Building Industry Association conference on Friday 26 March 2010. The west coast manager of real estate owned, Senior Vice President Ken Gaitan, stated that Bank of America, which currently forecloses on 7,500 homes a month nationally, will increase that number to 45,000 homes per month by December of 2010.

After his surprising statement, two questioners from the audience asked questions to verify the numbers.

Bank of America is projecting a 600% increase in its already large number of monthly foreclosures.

Submitted by Waiting to feel... on May 8, 2010 - 8:31am.

"Why is the empty short sale house we offered so much money on in early December till vacant?"

Amen to that, times three.

In the areas that I watch I am starting to see some more REO activity. Houses that have had auction dates posponed over and over are starting to get foreclosed (back to bene, not sold to thirds). In my extremely miniscule sample it appears that the banks will list the vacant properties first and let the occupied ones slide for awhile, perhaps collecting some rent from the former owners.

I don't think there will be a tsunami. The banks will be careful not to let that happen. I do think (hope) that there could be enough REO inventory coming on the market to keep prices in check, possibly trending down slightly. Based on what I see on Foreclosure Radar, it's going to take a couple of years to work through all the distressed inventory.

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