Freddie Mac has 10+ years of Foreclosure Inventory

Many areas of the country have seen an increase in real estate sales activity recently.  But the foreclosure anchor continues to weigh down the overall recovery.

HousingWire.com recently reported on Freddie Mac’s glut of foreclosure inventory.  At the end of the 3rd quarter (2011), the government-sponsored enterprise (GSE) had approximately 60,000 foreclosures on its books.  This was actually down from the previous year.  During the quarter, Freddie sold 25,300  homes and took another 24,300 into inventory, reducing its net load by 1,000 foreclosures.

Freddie Mac

At this pace (1,000 fewer foreclosures per quarter), it would take about 15 years to unload the entire foreclosure inventory.  Of course, foreclosures declined in 2011, mainly due to recent legal problems and regulations faced by lenders as a result of the robo-signing fiasco.  But with much of that worked out, the pace of new foreclosures is widely expected to increase in 2012.

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