Short Sales, Loan Modification and Foreclosed homes are going to be on the rise, as will the number of REO’s (Bank Owned Homes through the foreclosure auction process) in the near future.
The “shadow inventory” of bank-repossessed properties, as well as distressed mortgages facing foreclosure, will take nearly three years to clear at the current sales rate, according to a report from the credit rating agency Standard & Poor’s (S&P). The analysts add that during this period many servicers will likely shift their emphasis from mortgage modification to loan liquidation.
