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Foreclosures and It's Impact on Sellers
If anything is certain about the foreclosure crisis, it's that it isn't over. That fact has important implications, not only for people losing their homes, but also for those planning to sell or buy a home this year.
As of January, about 3 million properties were in foreclosure, headed that way or already owned by banks, according to CoreLogic, an information, analytics and business services company in Santa Ana, Calif.
Approximately 1.6 million of those homes were believed to be within the so-called shadow inventory, a supply of foreclosure properties not yet listed for sale. It's a major stumbling block to a housing recovery, says Mark Fleming, chief economist of CoreLogic.
"It puts downward pressure on home prices, which hurts home sales and building activity," Fleming said in a statement.
Given that prelude, here's what sellers and buyers can expect.
Foreclosures and short sales have widened the gap between sellers' and buyers' perceptions of prices. Sellers "think their home is worth more than it really is" and buyers "think the prices are too high," says Louis Cammarosano, general manager at HomeGain, a real estate information website in Emeryville, Calif.
One cause of that gap is realty brokers' tendency to scrub foreclosures ... more
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