The hidden truth is that banks are holding them off the market. If you remember the news, the largest lenders in the United States including Countrywide, Chase, Citi, FNMA, and Freddie Mac all agreed to hold off foreclosing past the minimum state requirements to give borrowers a time to work out a plan. The thought was that this would help them work out a plan to get the mortgage current. (In our estimation this didn't really end up working. Those that weren't going to pay, didn't and modifications didn't really work out.)
Due to holding off on foreclosures, the banks are now sitting on increasing numbers of foreclosures that are about to hit the market. You can expect to see a dramatic increase in the number of foreclosures that will be hitting the market in the next few months. Unfortunately, this more than likely means that we'll see another dip in home prices as they are sold off and effect their surroundings.
You can get more information from this article from real estate news site RIS Media
Update: After speaking with numerous agents that handle BPOs on foreclosures, I'm being told there is a massive increase in the number of orders they are handling. This tells me that the number of foreclosures is about to go on the rise.
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