About Foreclosure: Almost 2 Million Foreclosures Set to Flood a Struggling Real Estate Market
It seems that every time some good news about the foreclosure crisis comes down the pike, it’s followed by another sledge hammer of bad news.
About Foreclosure: The Good News
According to numerous recent sources, including the Wall Street Journal online, foreclosure filings fell for the 4th straight month last month. This was a little more than a week ago (12/10/09).
Today, another piece of bad news . . .
About Foreclosure: The Bad News
According to an AP article, Foreclosure backlog estimated at 1.7M:
About 1.7 million homeowners were on the verge of foreclosure in the fall, a looming “shadow inventory” of homes that will be put up for sale in the coming years and weigh down prices, . . . The number, up from 1.1 million a year earlier, is likely to keep rising through the middle of next year or later.
With the Obama administration’s mortgage modification program falling severely short in the number of homeowners it’s helped, it looks like the real estate market is about to be inundated again with more inventory — at a time when it can least handle it.
While home prices have been creeping up (”creeping” being the key word here), a huge influx of foreclosed properties could send home prices plummeting again. This means the housing market could take even longer to recover.
As a realtor in the aforementioned article says, “”We’ve been in recovery mode for most of the year. . . . Any house priced under $225,000 will be affected by a large increase in foreclosures in this market.”
Add to this the “jobless economic recovery” and what you have is a financial mess that’s not going anywhere soon.
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Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.