Industry News

‘Long, slow burn’ in foreclosure properties

Distressed-property experts share insight

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NEW YORK -- There is no shortage of short sales and bank-owned (REO) homes in markets across the country, and it's likely going to be a "long, slow burn" to work through this inventory of distressed properties, said Paul Jackson, publisher of HousingWire and REO Insider. By most measures, REO activity was fairly steady in 2009 compared to 2008, said Jackson, speaking during a discussion on "Breaking into the REO Club" at the Real Estate Connect conference in New York City last week. And while some analysts have tossed out staggering numbers about the so-called "shadow inventory" of foreclosing and foreclosed homes that will hit the market, he said he expects a continuing steady flow rather than a tidal wave. That's because there are government programs that are intended to check a rush of new foreclosures, he said. Also, as noted by speakers in an earlier conference session, financial companies would prefer not to take a hit on their balance...