Managing REO Special Report.(real estate owned)(Brief Article)

There are not many industries that are gearing up for an increase in business these days, but companies involved in managing and selling real estate that has been acquired through foreclosure say their business is likely to grow.

It's no secret why. The economy is cooling down, and fast. Last month, the government reported the largest single-month increase in the nation's unemployment rate in a decade. And more job losses could be coming if the economy does not make a quick turnaround. Employer downsizing, of course, is one of the big factors that contribute to loan defaults.

Nobody likes to see people lose their home, but foreclosure and repossession are a fundamental part of the mortgage business. More than two-thirds of American households own their own homes, in part, because lenders have been generous in approving as many loans as possible. That means home loans have ...