The vice president of a company which tracks foreclosures nationwide told the SF Chronicle that there are around 600,000 properties that have been repossessed but have not been placed on the market for sale. Eighty thousand are thought to be in California which is already awash in foreclosures. Flooding the market with more repossessed homes would depress falling prices further and could be disastrous. Dr. Doom* predicts a 40% fall in US home prices when the market bottoms not before mid 2010.
*Nouriel Rubini