Uh-oh! More foreclosed property is about to hit the market!
There’s Never Been a Worse Time to Buy a House » Counterpunch: Tells the Facts, Names the Names
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March 08, 2012
The Foreclosure Surge
There’s Never Been a Worse Time to Buy a House
by MIKE WHITNEY
Foreclosure starts surged 28 percent in January, according to Lender Processing Services (LPS).
Now that the banks are confident that a settlement will be reached in the $25 billion robo-signing scandal, they’ve started aggressively processing the mountainous backlog of delinquent mortgages on their books. As the process gains pace, a deluge of REOs will be dumped onto the market pushing down home prices and adding to the 10.7 million properties that are already underwater. Fitch Ratings Agency estimates that home prices could fall another 9.1 percent before the market touches bottom.
Here’s more from CNBC’s Diana Olick:
“… repeat foreclosures hit an all-time high in January, representing 47 percent of all foreclosure starts… This is going to cause some short-term pain in the housing market because as foreclosure starts increase, so do foreclosure sales…. (And) that pushes home prices down…..
We’ve also got … 60 months of inventory to get through in judicial states. Judicial states are the ones where you do need a judge to get through.” (“Unclogging the foreclosure market”, Diana Olick, CNBC) Continue reading