There was an interesting article in the Wall Street Journal this week that tried to answer the pressing question, where is the impending wave of foreclosures? The author provides several explanations for the lack of an REO wave:
- Some delinquent loans have “cured,” either naturally or through loan modifications. Even unsuccessful loan modifications have stretched out the amount of time that it takes to move a loan through the foreclosure process.
- Banks are getting better about approving short sales, where a home is sold for less than the amount owed, even though the process is still far from seamless.
- And even when a foreclosure happens, more investors are buying the properties from banks at courthouse auctions, which means that the property won’t show up as REO, even though it could ultimately hit the market.
Click here to read the rest of the article.
