Foreclosures continue to hurt the housing market.  I am asked daily, "When will the housing market turn around?  Are we finally done with all these Bank REOS and Short sales?"  I keep answering, NO, NO and NO!!  We have at least 2 to 3 more years of distressed sales in our communities.  The article below by DSNews.com yesterday is stating that our foreclosure inventory levels stood at 30x more than the monthly foreclosure sales.   Not a good sign for those that are sitting on the fence waiting to sell.. the pricing pressures in practically every community will continue for sometime. 

If you are in default and either a modification doesnt work or you have a hardship that prevents you from keeping the home, NOW is the time to do a short sale.  Or if you are thinking of selling and buying a new home, but waiting for the market to turn around.. NOW is the time to sell your home and buy.  If you wait for 3 years, your home could be lower in value, but equally as important, interest rates probably will not be in the high 4% range.  

Read article below.. call me to discuss your housing situation!

Derek Gutting, The Gutting Group, www.GuttingGroup.com (317) 846-4888 Keller Williams Realty

PS: Foreclosure Backlog Stands at 30x Foreclosure Sales Volume

03/28/2011 By: Carrie Bay Printer Friendly View

New data released by Lender Processing Services (LPS) Monday show that while delinquencies continue to decline, an enormous backlog of foreclosures still exists with overhang at every level.

As of the end of February, foreclosure inventory levels stood at more than 30 times monthly foreclosure sales volume, indicating this backlog will continue for quite some time, according to LPS.

Ultimately, these foreclosures will most likely reenter the market as REO properties, LPS notes, putting even more downward pressure on U.S. home values.

The company reports that the average U.S. loan in foreclosure right now has been delinquent for a record 537

days. A full 30 percent of loans in foreclosure have not made a payment in over two years.

Still, LPS says its data show that banks’ modification efforts have begun to pay off, as 22 percent of loans that were 90-plus-days delinquent 12 months ago are now current.

February’s data also showed a 23 percent increase in Option-ARM [adjustable-rate mortgage] foreclosures over the last six months, far more than any other product type.

In terms of absolute numbers, Option-ARM foreclosures stand at 18.8 percent, a higher level than subprime foreclosures ever reached, LPS said.

In addition, deterioration continues in the non-agency prime segment.

According to LPS’ report, both jumbo and conforming non-agency prime loans showed increases in foreclosures and were the only product areas with increases in delinquencies.

LPS reports that the total U.S. loan delinquency rate stood at 8.8 percent as of the end of February. The U.S. foreclosure inventory rate hit 4.15 percent.

By the company’s calculations, there are a total of 6,856,000 mortgages in the United States that are considered non-current.