Their are finally people in the Real Estate Industry starting to come to terms on what is happening in the housing market. Again 2015 prediction is the optimal outlook.
It will take at least another year to work through the glut of REO inventory in the market and yet to come to market, according to Rick Sharga, senior vice president of RealtyTrac.
Speaking at HousingWire's 2011 REO Expo in Fort Worth, Texas, Sharga said the housing market is years away from full recovery, and he expects 2012 and 2013 to look similar to this year as the industry grapples with levels of distressed properties never seen before.
And what the lending industry can do help housing return to a normal market.
Sharga believes lenders and servicers can mitigate the number of foreclosures through potentially extending teaser rates, possibly pushing loan maturities to 40 years, and maybe even principal reductions.
He said many of these homeowners face the tough decision of whether or not to strategically default on their mortgage, as they owe more than the home is worth.
"There is an abundance of uncertainty in the market, as many people are waiting for the other show to drop," Sharga said.
A note on principal reduction. If the bank is only the mortgage servicer and not the owner of the Note, then they are probably not authorized to do a principal reduction on the mortgage.
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