The percentage ofhomes that bankshavefiledforeclosure on or repossessed (andstamped with thedreaded "REO," or "real estateowned," moniker) now account for 3% of all mortgaged homes.
But his primary concern is that, in some areas, a turnover of realestateowned(REO) properties to private hands, without proper oversight, could simply lead to a stock of neglected rentals in already depressed metro markets.