Lisa Simpson
Jun 2,2009
In: REO Properties

Bank Reo Listings

Foreclosure

By Bank Reo listings are meant those properties that have been taken over or repossessed by the banks after having been foreclosed upon. There are not just thousands but millions of Bank Reo listings causing grave repercussions on the economy. In fact it is these Bank Reo listings that are considered to be one of the prime causes of the prevailing recession in USA that is now spilling over to the rest of the world. The Bank Reo listings are having socio-economic as well as political ramifications.

It is held by experts that exotic mortgage loans like sub-prime, ARMs and the like were peddled to gullible borrowers by predatory lenders during the time of the housing boom. In fact the flow of money causing the housing boom started with the flow of money from these mortgages. These were given to any and everybody without checking their income levels. The brokers took fat commissions and disappeared. The lenders now parceled these mortgages, sliced them and sold them to various investors around the world. The global buyers blindly purchased these highly rated securities. But when the humble borrowers, one after another, failed to be current on the mortgages the lenders found out they had eaten more than they could digest. Indigestion led to the collapsing of one jumbo financial institution after another in USA. Soon the disease surfaced in other parts of the world.

The courts became jam packed with Bank Reo listings. There were so many Bank Reo listings that the court had to hire extra staff and pay overtime to grapple with the drowning number of Bank Reo listings. Each foreclosure was dealt with within minutes. Generally there were none to oppose and none to buy the houses. Consequently the Bank Reo listings began to weigh down on the lenders.

The communities soon began to suffer because of empty Bank Reo listings lying around neglected. The banks did not have the infrastructure to manage these thousands of repossessed houses. The vacant houses attracted criminals and prostitutes as well as drug peddlers. The localities became unsafe as the price of real estate began to plummet. With sales at an all time low the government revenue began to dwindle at a time when there was more work to do.

Meanwhile the people who were thrown out from foreclosed units’ crowded shelters and tent camps. Pets were abandoned. This is leading to widespread social unrest making the politicians jittery.