REO Pipeline and impact on residential values
The massive back log of foreclosure properties appears to be pushing through the system again at an increased rate in Cook County, IL (Chicago).
Properties sold back to the lender at foreclosure auctions increased 62% in Nov 2011 over the prev month (1789 vs. 1100 units). Through Sep 2011, the ave # units sold back to the lender on a monthly basis in Cook Cty, IL was 879.
What are lenders doing to manage this supply of REO properties that is bound for the resale market?
Are we going to see further downward pressure on pricing in 2012 and beyond?