The Accumulation of Lender-Owned Homes During the U.S. Mortgage Crisis: Examining Metropolitan REO Inventories

48 Pages Posted: 10 Jan 2010  

Dan Immergluck

School of City and Regional Planning, Georgia Institute of Technology

Date Written: March 1, 2009

Abstract

A key concern among policymakers and community developers in recent years has been the extent to which lender-owned homes, often called real estate owned or “REO” properties accumulate in different local housing markets during the mortgage crisis. This paper describes the accumulation of REO properties in 356 metropolitan statistical areas (MSAs) from August 2006 to August 2008. It examines differences in both changes and static levels of REO activity across MSAs and compares changes in REO levels to changes in home values over the same period. Special attention is paid to twelve large MSAs with substantial levels of REO as of August 2008. A model of REO volume at the metropolitan level is estimated which includes differences in state foreclosure legal processes and timing among the independent variables. Finally, cluster analysis is used to identify a simple typology of MSAs based on REO levels and home price changes.

Keywords: foreclosure, foreclosed properties, subprime crisis, mortgage crisis

Suggested Citation

Immergluck, Dan, The Accumulation of Lender-Owned Homes During the U.S. Mortgage Crisis: Examining Metropolitan REO Inventories (March 1, 2009). Housing Policy Debate, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1533772

Dan Immergluck (Contact Author)

School of City and Regional Planning, Georgia Institute of Technology ( email )

United States

HOME PAGE: http://www.prism.gatech.edu/~di17

Paper statistics

Downloads
205
Rank
121,150
Abstract Views
722