If you thought foreclosures were much a thing of the past, you’re partly right. While new foreclosure filings are near normal compared to the housing debacle of the last decade, there is a fresh batch of inventory. However, there is a Accredited Investornew wave hitting the market as banks and mortgage lenders made their way through all the legal challenges by homeowners who could no longer afford their homes but didn’t want to lose them, either.

When either a lis pendens or foreclosure is filed, homeowners can be approached by attorneys or other consultants who, for a fee of course, will halt the foreclosure process temporarily or sue the lender for faulty process or inaccurate loan documentation. Those legal challenges apparently have been overcome and banks are now repossessing homes at a fast pace, this according to an article in cnbc.com.*

According to the story, RealyTrac, a real estate data firm, reported more than 123,000 homes were repossessed in three months, which is a 66% year over year increase making it the largest number ever recorded.  In states where banks must go through the courts and appear before a judge to successfully foreclose, called “judicial foreclosure,” these homes are finally making it through the entire foreclosure process.

This means in judicial foreclosure states, banks now have more inventory than they’d like to have. REO departments at many of these banks are swollen with inventory and real estate investors may very likely see a new round of distressed homes for sale at reduced prices. As with any REO property, investors might be able to negotiate a better deal, especially if the home has been vacant for some time or the owners couldn’t afford to make necessary repairs with plenty of deferred maintenance needing attention. And as the calendar year begins to draw to a close and rates are still favorable, this new inventory may not be around very much longer.

*”Repossessions spike 66% as foreclosure crisis lingers”   Diana Olick, cnbc.com October 15, 2015