My friend works for an Asset Management Company. These are firms that manage REO's (Real Estate Owned - or Foreclosure Properties). I am always interested in the direction of the market and the pressures that will affect the market in both the near an long term. The slowdown in processing of foreclosures may postpone a bit of the current downward pressure we are experiencing in the market. But ultimately, the banks will resume full scale foreclosure proceedings. Bank of America, the first to halt their foreclosure process just indicated that they would resume it yesterday.
Our market continues to battle with a large number of delinquent homeowners who really have little or no choice about keeping their property. I am handling many of these short sales for families and consider it a privilege to be able to help them through some difficult times. When these broken investments are fixed, then our economy can return to normality. The opportunities for those who can buy at these extremely low rates and discounted market will benefit in the long run. At this time however, I do not see a clear end in site.