| Repo homes or repossessed homes are those | | | | calculating to $75 billion being offered to them. |
| residential units that have taken over by the lenders, | | | | The increase in number of repossessed homes is |
| mainly the banks, after having foreclosed upon them. | | | | causing the housing crisis to worsen. Across the |
| Repo homes are also referred to as REO or real | | | | country about 804,000 borrowers got one foreclosure |
| estate owned. There is now hardly anybody today | | | | related notice during the first quarter of 2009. Last |
| who does not know about repossessed homes as | | | | year during the same period the number was 650,000 |
| these are dotting the landscape. The banks are sitting | | | | according to RealtyTrac. |
| with so many repo houses, that they are offering huge | | | | In March 340,000 properties were scarred showing an |
| discounts to take them off their inventory. But buyers | | | | increase of 17% from February and 46% from March |
| are at a premium and so repo homes continue to | | | | 2008. Foreclosures seem to have come back with a |
| languish - blight on neighbourhoods. | | | | vengeance after a brief respite of few months. |
| In the first quarter of 2009 the threat of foreclosures | | | | In 2009 there were 191,000 repo homes - houses |
| that would ultimately lead to repo homes increased by | | | | taken over by the banks after completion of |
| 24%. It is set to spike further if the jumbo lenders | | | | foreclosure process. The number of repossessed |
| discontinue their moratorium and start taking action. | | | | houses in the first quarter of this year was 13% less |
| President Obama as optimistic plans about helping 9 | | | | than that of the 4th quarter of 2008. There are fears |
| million homeowners but the big question mark is | | | | that it will continue to increase through summer before |
| whether the banks will cooperate despite carrots | | | | tapering off. |