How scary is that number, 7 Million. If it was the deficit, it would not even scratch the surface. But it is the number of homes that are essentially in a foreclosure backlog.
These 7 million foreclosures represent those that are being negotiated, ones lenders are just plain ignoring, ones that are being worked out, or those that because of different moratoriums are not being acted upon.
Now we all know that they will not hit the market at one time, but they are the ticking time-bomb of the housing industry.
These homes largely represent loans that are delinquent but have not yet resulted in foreclosure sales.
About 7 million properties are destined to go into foreclosure, according to a September study by Amherst Securities Group, compared with 1.27 million properties in early 2005.
“There’s a huge supply out there,” says Dean Baker, co-director of the Center for Economic and Policy Research in Washington, D.C. “The foreclosure process can take a long time. When it comes to (the housing recovery), we’re not home free.”
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The question is when are they going to release them on the market. Las Vegas leads the nation in foreclosures but REO properties hitting the market remains low. Makes you wonder why they are holding on to these properties?
Absolutely agree with you on the backlog of foreclosures. It will blow wide open next year! I personally do not think that we anywhere near the bottom of the market now! Coming from Florida where the unemployment is almost at 12%, I can speak for Florida in that lots of people are going to lose their homes.
When the hell is it all going to end? You read one "expert" and he says that we are past the worst of it, and another says that we still have a ways to go!
Bittersweet pill in that I do property preservation subcontracting for HUD and FHA all over Florida so it does mean potentially more work for us. But, at the same time it makes me sick that yet another family has lost their home. You could point fingers at who is responsible but it is still a terrible mess.