There are so many mixed messages coming in, it is hard to know who to believe. Here is what we are hearing from some of the best analysts, plus we are also seeing the following trend in the St. George and southern Utah area.
A lot of property owners have been trying to hold on and not have their property go to a foreclosure situation. Unfortunately most of the people who thought they could get their loans modified are not having any success. If they are able to do a loan modification, the benefits to the property owner have been slim and a long time coming.
Many of the people who have gotten a loan modification have only gone into foreclosure anyway, because the loan modification was not enough to make up for their income losses. Out of the approximately 9 million property owners in default only a very few have received loan modifications.
Today there is more evidence that banks are finally going to have to drop the hammer on many property owners and foreclosure. Time and opportunity is running out for banks that have been reluctant to put more homes on the markets. Until the inventories of foreclosed and future foreclosures begin to subside the housing market will continue to suffer.