Tags: home | Foreclosures | Decade

USA Today: Home Foreclosures Will Take Decade to Clear

Thursday, 10 Nov 2011 08:08 AM

The housing market will need at least eight years to rid itself of the 2.1 million homes either in foreclosure or carrying seriously delinquent loans, USA Today reports.

Dealing with faulty legal procedures, new regulations and other red tape snags are slowing up foreclosures sales, and delays will further hamper recovery in the sector, USA Today adds, citing LPS Applied Analytics, which collects data on nearly 40 million mortgage loans.

"This is like having water backed up behind a dam. We hope it'll be let out easy and not all at once," says Allan Dechert, president of the New Jersey Association of Realtors.
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The longer it take to move foreclosed homes out of the market may give borrowers more time to work out their situations, which could slow the decline of home prices nationwide.

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(Getty Images photo)
However, the more time a large backlog of foreclosed homes sits on the market, prices will remain low because buyers will wait on expectations prices will continue falling, other experts add.
In the end, it hurts.

"It's a question of whether you rip the Band-Aid off quickly or slowly," says Herb Blecher, LPS senior vice president.

Home prices, meanwhile, fell 1.1 percent in both September and August, according to CoreLogic, a real estate research firm.

The latest drop puts prices 4.1 percent lower than they were in September 2010.

"Home prices are adjusting to correct for the supply-demand imbalance, and we expect declines to continue through the winter," says Mark Fleming, chief economist at CoreLogic, according to MSNBC.

"Distressed sales remain a significant share of homes that do sell and are driving home prices overall."

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The housing market will need at least eight years to rid itself of the 2.1 million homes either in foreclosure or carrying seriously delinquent loans, USA Today reports. Dealing with faulty legal procedures, new regulations and other red tape snags are slowing up...
home,Foreclosures,Decade
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2011-08-10
Thursday, 10 Nov 2011 08:08 AM
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