As the data shows, the number of REO properties sold in the 1st quarter of 2009 is down 30% from the same period in 2008, and down almost 14% from the same period in 2007. Prices of bank-owneds in 2009 have crept up only slightly from 2008. I haven't yet studied the statistical correlation between the number of foreclosures and the REO sales in a given period. However, there is usually a lag between the two as after the bank takes ownership of the home often there are things like cleaning, and repairs and improvements necessary to make the home saleable, and the time for these tasks varies from property to property.
Over 60% of those properties were sold at prices below $200,000. This is great news for first-time homebuyers interested in Longmont who want to take advantage of historically low interest rates and bargain home prices. It's also a great time to pick up a rental property if you are interested in investment opportunities.
Another way you can increase your odds of obtaining a bank owned home is to find a realtor that actually lists and sells these homes for a banking institution. These realtors get early notification from their bank clients as properties become available and have exclusive access to the bank's inventory before they place properties in the MLS and start marketing them. It's the good old "inside track". Realtors with bank-owned experience also have knowledge of the bank's procedures and can walk you through the sometimes complicated process.