15 million households in CA and NY FRB thinks there are a whopping 50k bank owned.  Do da math.  One out of 300?  There is no place in the state you can drive past 300 houses without passing a REO.  There are lots of places where you cannot drive past 30.  I can point to neighborhoods where you can't drive past 10.  I'm not saying anything close to 10% but to trying to say 0.3% just defies all concept of reasonable. 

Use the previous previous post link and remove the REO filter in the search terms and see for yourself.