Recent RealtyTrac news reports that 1 million foreclosures will be delayed until 2012 due to the massive backlog currently being experienced throughout the country. It is being reported that this will result in a delayed market recovery of an additional year, and thet "normal levels" of foreclosures will not be experienced until 2015.
The general observation made is that "lenders taking longer to take action against delinquent borrowers is stalling the housing recovery." On the other hand, lenders, with the support of our current administration, have self-imposed delayes in an effort to allow homeowners to restructure or modify their loans, or to simply "get back on their feet."
There is support for bhoth schools of thought. Either way, the inevitable probably isn't going to be avoided with delays. We might be able to help a small percentage of homeowners by delaying the process, but overall we are also delaying others from getting off of the fence. Consumers want to hear and feel that the worst is behind us before they get up and buy. To me, this is like a bad divorce that gets dragged out for years. We know what is going to ultimately happen. What we need to do is have the doctor give us our shot quickly. It might sting a bit at first, but the pain will subside and we can start to get healthy quicker.
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