This ongoing saga may FINALLY be coming to an end as the deadline for a settlement was extended until next Monday. 40 states have already signed on for a settlement that reportedly will have the lenders paying around $25 billion. Most of this money will go towards principal reductions.
It remians to be seen what impact this will have on distressed homeowners and the "shadow" inventory. Although the proposed $17 billion in principal reductions sounds like a lot of money, there are a LOT of distressed homeowners to spread it around to. Also, it remains to be seen just how this program will be implemented and who will qualify. Most likely it will take another year or two for this to actually come to fruition. That being said, it's a step in the right direction if they actually do settle.
On another note, many feel that the foreclosure inventory backlog will begin to ease as lenders begin to release these properties in more earnest. In Maricopa Arizona, our inventory of active listings is at an all time low. With our seasonal buyers descending upon us, any increase in inventory would be welcome!
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