Get ready for a slew of Foreclosures destined to slam your local real estate market in the next few months....
According to the article below: Foreclosures did not surge in April because the banks simply didn't have the workforce to process all the troubled loans after the moratoriam had caused a backlog of distressed properties.
Here is an article from CNBC that will explains things further that you may like to read
In this article by Diana Olick, she goes on to say they are seeing a significant increase in the number of people calling for help from the Consumer Credit Counseling Service of Greater Atlanta who have interest-only mortgage loans and are going delinquent. Last year at this time they counseled about 100 per month. Now they're doing about 800 per month.
So as realtors, if people ask you if homes are a great investment, you may want to be careful with your answer. My answer is this: your home is an investment in living.
The banks certainly cannot cope with the number of foreclosures they're dealing with.
The additional problem is the lack of efficiency in processing the offers coming in on those foreclosed properties that are already on the market!
Stewart: you may recall 6-8 months ago I predicted over a 1000 banks would fail....people are starting to get the message.
The banks are propped up on the stock market and are just starting to unwind in price....it could be a summer to forget soon!
A friend of mine that works foreclosures only shared this with me today. Just wait. From what I heard there is excess of 800,000 foreclosure's not on the market yet sitting in a shadow inventory.
Jim: I wish I could say what is truly happening. I think the truth is not being told here down the line. That is the purpose of my post here is to let the public know what is going on.
Rumor has it that some banks are holding on to foreclosures in hopes of getting bailout funds. Not sure of the veracity of this, but I wouldn't be too surprised.