The other day Countrywide Financial posted over 195,000 properties for sale on their REO/Foreclosure website. It was a complete shocker to many of us - as we didn't know what to make of this.
Thanks to Peter Villes from the L.A. Times who contacted Countrywide's PR and received the following email response:
"There was a technical glitch. I'm trying to get you the accurate number but it probably won't happen until tomorrow."
A reader from the L.A. Times Blog asked:
‘MattJ wrote, " I'm sure it is a technical glitch, too, but the real question is what is that list of 190,000 houses a list of? Some speculation at Calculated Risk include that it is a list of homes in the foreclosure process but not yet REOs, or that it is a list of all REO houses that Countrywide services. Whatever it is, it sure would be nice to learn what that larger list contains and how it ended up in their list of Countrywide REOs."’
The question from MattJ's post was forwarded by email to Countrywide by Peter and the response from Countrywide was as follows:
"There was an omission in the logic that didn't filter out any properties so it was including all historical REO properties in the database. This has been rectified and new logic has been added."
From Peter Villes:
"To answer gman's question ("Is it possible that Countrywide has 196,000 of these and they've just been holding back?"), we think that is highly unlikely, and we take Countrywide at its word on this one: a technical glitch."
I believe this explains a lot, and we should take Countrywide at its word on this one as well.