NO END IN SIGHT FOR FORECLOSURE QUAGMIRE

In a statement of the most obvious the main stream press announced today that their is no end in sight to the foreclosure quagmire.  Really? This news is no shock to savvy real estate investors who have watched from a distance as the major lenders have only casually tried to address a human crisis of great proportion.

If you know someone who has tried to get a modification than you have heard the story, so I will not bore you with it here. It is abundantly clear that the distressed real estate owners need to short sell their properties in order to reduce their exposure. By short selling the distressed properties the market will come to an equilibrium.

The downward trend in values will continue at least for the foreseeable future.  The market will not stabilize until the inventory and shadow inventory has been turned over.  If the market is to stabilize in the near future it will result from investors buying the available inventory, at reduced prices, and wholesaling the inventory to the general market. Current market conditions make retail real estate sales very unattractive.