Flood of Foreclosures: It's Worse Than You Think

[Donnachaidh]

http://www.truthout.org/012509A

Banks are moving slowly to list repossessed homes for sale, which could mean that housing inventory is even more bloated than current statistics indicate.

New York - Housing might be in worse shape than we think.

There is probably even more excess housing inventory gumming up the market than current statistics indicate, thanks to a wave of foreclosures that has yet to hit the market.

The problem: Many foreclosed homes and other distressed properties that are now owned by banks have yet to be listed for sale. The volume of this so-called "ghost inventory" could be substantial enough to depress already steeply falling prices when it does go on the market.

"That's not good news," said Pat Newport, an analyst with IHS Global Insight. " inventory is the biggest problem in housing these days, and it leads to lower housing prices, which leads to more foreclosures."


MORE at the link above --

[soothsayer]

1. housing prices are still wayyyyyy overinflated, so sadly, they need to come down

to reality

[ColbertWatcher]

10. But, will the price of ALL property go down too?

Like commercial and rents?

I think if housing goes down, everything else should follow suit.

[indepat]

2. It truly feeds on itself, akin to man-eating organisms

:D

[napi21]

3. Well, if banks aren't granting mortgages, and hundreds of thousand

of people are losing their jobs each week, the housing inventory can't possibly get better!

My instincts are telling me that this is much like water behind a dam. When the credit market finally opens and the job market stops hemmoraging, it will be like that dam breaking. I just hope it doesn't take too long to happen.

[Gin]

4. states rely heavily on taxes from homeowners....this will compound the

shortages they face when budget times roll around....they will have to cut services.

The immediate future does not look bright.

[rucky]

5. I thought that was what the TARP money was for?

[DURHAM D]

6. Yep - lenders are not yet organized enough to get the stuff listed for sale.

I manage/collect assessments for HOAs. In the past when a lender took possession they sought out the HOA and immediately began to pay the monthly assessments to the Association. Now they hide and don't pay.

The Association's have had to resort to putting liens on the lenders. Otherwise, the lenders would try to move the property and try to escape their share of monthly assessments.

This costs every Association more money in legal fees. In other words, more and more costs are falling into the fewer and fewer laps of the responsible/paying owners.

My advice - if you are tempted to pick up what looks like a bargain in a "shared-interest" community don't do it. There are all sorts of expenses in the pipeline that are not yet obvious.

[Ex Lurker]

7. I would never live anywhere that had a HOA n/t

[DURHAM D]

8. In some communities it is the only affordable housing. eom

[ColbertWatcher]

9. They're holing an auction of foreclosed homes this weekend out here in LA. n/t

[mmonk]

11. Showed one yesterday (I'm a broker).