From zero hedge: In a press release overnight, the foreclosure tracking service RealtyTrac, observed that a stunning 47% of bank-owned homes are still occupied by their previous owners who were foreclosed on, creating “vampire REOs.”
I naively thought that regulators were making sure that banks were turning over their REO (repossessed property) inventories. Apparently not, instead they are just stockpiling them. As the current bubble pops, this bodes ill for the banks. Stupid, stupid, stupid.