When the foreclosure challenge first came out, we used to hear about the four sand states all the time. California, Arizona, Nevada and Florida. Well those are not the states now that have the largest foreclosure situation. Now Florida is still a judicial state so they’re still in that group. But now states like New Jersey, Illinois, New York, Maine, Connecticut, Ohio, Indiana, those are the states with the highest foreclosure inventory. So it’s shifting. Where the problems were and where they’re going to are different groups, two different regions of the country.
We want you to understand that in the judicial states there’s a back up of inventory. And that goes across the board. As Freddie Mac just announced, although our servicers have resumed the foreclosure process in most area, we believe the volume of our single-family REO acquisitions during the first quarter of 2012 was less than it otherwise would have been due to delays in the foreclosure process, particularly in states that require a judicial process. If you’re in one of the judicial states you have a larger inventory of foreclosure properties that will be coming to market. That means your prices will be impacted the most. – Courtesy of KCM Crew