If you know 5 people behind on their mortgage payments, 4 of them are going to end up losing their homes, according to a new study released by John Burns Real Estate Consulting.
They say that there is a “shadow inventory” of approximately 5 million houses with delinquent mortgages that will go on the market in the next few years. However, because they’ll only get released as homeowners’ fingers are slowly pried from their deeds, there probably won’t be another drop in prices. Sorry, bargain hunters.
The consultants also say that the current efforts to modify loans, few of which are accompanied by a balance deduction, will only delay the inevitable. I can hear the clatter of jingle mail already!