Does this chart mean a lot more REOs are coming?

If the great backlog of foreclosures was about to start hitting the market, wouldn’t we see a chart like this first?

LPS is showing a huge spike in 6+ months-delinquent foreclosures, as all of the HAMP rejects get back in line for the courthouse steps. Combine this with the fact that Fannie and Freddie NOD action has also been higher for the last couple of months and maybe we’re on to something here…

Don’t get too excited yet, homebuyers. There will no doubt be more Government “extend and pretend” tinkering before many of these homes actually hit the market for sale.