At the end of 2010, the Federal Housing Administration was holding 60,739 properties that it has essentially repossessed by foreclosure. This number was up a staggering 47% from 2009. When this number is combined with the REO holdings of Fannie Mae and Freddie Mac, the U.S government has approximately 360,000 REO properties on its books. With those kind of numbers, the American government has clearly gone into the real estate business (whether it wanted to or not). It may as well form a real estate company!

And that doesn’t include the inventory to be added in 2011 or any shadow inventory. According to Capital Economics, the FHA alone has nearly 600,000 mortgages in serious delinquency. No word on Fannie and Freddie estimates.

What this means is the government’s real estate holdings will clearly be increasing again in 2011. Hey Uncle Sam, I have a few good investors, give me a call and perhaps we can take some of those off your inventory!

Based in Atlanta, Amy Ransdell founded The Southeastern Group Loss Mitigation and licensed Home Team in 2005. Five years later, this morphed into Southeastern Realty Group, of which Amy’s Southeastern Home Team, comprised of several members (and growing!), remains an integral part. Amy has rehabbed homes, sells real estate, works regularly with real estate investors, is an investor herself, negotiates short sales, continues to expand her real estate team, has become a much-sought-after Mastery Coach for FortuneBuilders, and regularly writes articles with a bite for Creative Real Estate Daily and Short Sale Daily News. Follow her today on Twitter, ActiveRain, or LinkedIn.

Posted on 28 February 2011 Amy Ransdell for Short Sale Daily News