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For sometime, the government stopped foreclosures from happening. So, inventory became lower and it has caused a buyer frenzy on homes because the demand is higher than the supply. Buyers are now buying new construction homes and short sales without delay. The past two years of REOs/foreclosures was because of loans with 2/3 year adjustables, now we will see more based on the neg. amortized loans. However, the government continues to assist in the helping to reduce the downfall by providing monetary incentives to people in distress to save their homes and loans. This is working for some.
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