Bank repossessions at record high

Bank repossessions of homes hit a record high during the second quarter, with over 260,000 properties returning to lenders, according to Foreclosure-Support.com, which analyzes home foreclosures.

The figure is up 5 percent from the previous quarter and up 38 percent from the second quarter last year.

Bank repossessions occur after a home has been in foreclosure for quite some time.

"After the homeowner's allotted time to pay off the debt runs out, the banks start repossessing," said John Clark, the group's business analyst, in prepared remarks.

"With so many bank repos on the books, I wouldn't be surprised to see some startlingly low prices," he said. "The problems behind the foreclosure crisis are still there, and there will still be plenty of new homes on the foreclosure market."

Findings from the group come as the Treasury Department on Tuesday hosts a housing finance conference. The meeting will tap the opinions of citizens, consumer advocacy groups, economists, investors, lenders and many others on how best to reform housing finance.

The Treasury last April sought public comment on housing finance and received hundreds of responses. Today's conference is the next step in the Treasury delivering to Congress a housing finance reform proposal by January 2011.