Bank of America expects to release about 6,000 foreclosed properties into the Nevada housing market in 2010, or about 500 a month, an executive with the bank said Wednesday. It's part of the so-called "phantom inventory" of foreclosed homes being held by banks as they work out loan modifications and negotiate short sales, two of the more desirable alternatives to foreclosure. Throughout the country, estimates of homes being taken back by Bank of America range from 11,000 to 14,000 a month in the early part of this year to 29,000 to 35,000 by November and December, said John Ciresi, vice president and portfolio manager for Bank of America in Towson, Md. To read the entire article go to Las Vegas Review-Journal.
I expect this to begin happening in Arizona as well. The "phantom inventory" is just too large for banks to continue holding on to. Eventually something has to give. A large influx of properties will definitely have a drag on the prices. 500 properties a month from one lender is HUGE.
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