Biggest Banks Holding over $20B in Foreclosures

Reno/Sparks Real Estate - Buying Real Estate in Reno/Sparks, Nevada

According to DSNews.com, our nations biggest Banks (including JPMorgan Chase, Bank of America and Wells Fargo) are currently holding more than $20 billion in mortgages that have foreclosed or are in the process of foreclosure. There has been lots of talk about the "Next Wave" by industry analysts, this report gives us some indication as to the size of that potential wave. Unfortunately, Northern Nevada's share of that $20B is going to substantial. While REO (bank owned) inventory has been limited since the Tax Credit expiration, a drive around town provides plenty of evidence that there is is plenty of bank owned (or soon to be bank owned) homes that have not yet been placed on the market for sale (sometimes referred to as "Shadow Inventory"). The upside of this manipulation of inventory is stabilized prices. The downside is the possible postponement of additional devaluation of our housing.

Complete DSNews.com article available at http://tinyurl.com/23a8py8