The first three months of 2010 saw a record number of foreclosures, even as many economic experts say the recession is over.

RealtyTrac Inc. reported that the number of homes in the REO process increased 35 percent since the first quarter of 2009. More homes became REO properties than in any other quarter since at least January 2005, when RealtyTrac began reporting numbers. of foreclosures. In all, more than 900,000 homes received foreclosure notices, or one in 138 homes.

“We’re on track to see more than 1 million bank liens this year,” said Rick Sharga, a senior vice president at RealtyTrac.

The rise in foreclosures, according to many experts, has to do with banks finally processing so-called “shadow inventory” of REO homes that had not yet been officially foreclosed on and were in limbo.

Although the Obama administration is still trying to prevent foreclosures, many real estate experts believe that this policy is actually harmful to both homeowners and the housing market in general.

Ivy Zelman, who runs her own real estate consulting firm, says, “Public policy is holding back the pig in the python: the pig has lipstick.” The “pig,” for Zelman, represents the huge REO inventory that is currently being handled by the nation’s financial system, but is not yet represented by official numbers.

In Washington DC, for example, Zelman says official estimates say there is a five-month supply of homes for sale. But if hidden REO properties were actually represented, that would be a 13+ month supply.

Another reason for people to try training on how to become an REO agent? It’s not just past foreclosures that are the problem, many future ones are yet to come. Households facing foreclosures grew 16 percent in the first quarter of 2010 year-over-year and 7 percent since the last quarter of 2009.

Homeowners continue to have problems with mortgage payments because they have lost their jobs or because an interest rate reset on their home loan has made it impossible to make payments. Plus, most can’t refinance because they’re “underwater”: they now owe more on their loan than their home is worth, a problem that’s not going to go away anytime soon as home prices continue to fall in most areas. areas. And the Obama administration’s programs to help homeowners modify their loans have had only very limited success: About 215,000 have completed the program, but another 158,000 were unable to meet the reduced payments they negotiated with their banks.

Training to become an REO agent and learning how to obtain REO listings remains an important career option in a real estate market that will continue to be dominated by REO sales.