Got a long way to go.
I asked the Realtors how much of these sales are “distressed” properties, that is, short sales (where the seller works with the lender to sell at a price below the mortgage value--that way the seller and the lender avoid foreclosure, which usually ends in bigger losses) and REO sales which are bank-owned properties (homes that have already gone through foreclosure).
According to the Realtors, a full one third of sales are distressed properties. Think about that. Five million home sales expected this year and of those about 1.65 million will be homes that a seller couldn’t afford to keep.
