Just came across this little gem of a story. BofA, currently foreclosing at a rate of about 7,500 homes a month, is going to be ramping up to 45,000 by December 2010.
Irvine Housing Blog - Irvine Real Estate and Irvine Homes - Bank of America to Increase Foreclosure Rate by 600% in 2010
Tasty bits:
A 600% increase in foreclosures
I attended a local Building Industry Association conference on Friday 26 March 2010.
The west coast manager of real estate owned, Senior Vice President Ken Gaitan, stated that Bank of America, which currently forecloses on 7,500 homes a month nationally, will increase that number to 45,000 homes per month by December of 2010.
After his surprising statement, two questioners from the audience asked questions to verify the numbers.
Bank of America is projecting a 600% increase in its already large number of monthly foreclosures.
This isn't unsubstantiated rumor; this comes straight from one of the most powerful men in
Bank of America's OREO department (yes, that really is what they call it). It appears they have too many properties already.
It is still not enough
Last week I noted that
Lenders Start More Foreclosures to Catch Up with Delinquencies. Consider the size of the problem: 1.2 million Bank of America homeowners are in default. Even if they forclosed on 45,000 a month for a full year, that is only 540,000 foreclosures. What about the other 660,000 people in default? I think their number -- large as it may seem -- is actually wishful thinking. It is worse than that. (thanks jules)
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