The following excerpt comes via HousingWatch.com's Alyssa Katz, an award-winning author and regular contributor. Interesting read, even if an ominous one. -- KB
Heartened by the recent rise in home prices? Don't get too comfortable. Standard & Poor's, the credit-rating agency that tells investors what mortgage-backed securities are worth, reports that the increase was just an illusion. It predicts the nation is about to see a deluge of new foreclosures that will drive real estate values back down.
Blame the "shadow inventory" – nearly 1.8 million homes that are on the road to foreclosure but for all kinds of reasons haven't gotten there yet.
Read the full post on HousingWatch.
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