The volume of real estate news can be confusing especially when so many numbers are involved. Let's take a look at 3 recent articles that look at distressed real estate or homeowners.
TheÂ first article, from the NY Times, talks about how banks are selectively and proactively helping homeowners through loan modifications. That is good news for the housing market as it will probably reduce the number of foreclosures; The issue is that we do not know of the number of the modifications. Is the volume of modifications large enough to have a significant impact?
TheÂ next article, from Boston.com, talks about FHA extending the length of their forebearance program to the unemployed. That'll likely help prevent a certain number of foreclosures. Good for the real estate market. The issue is that the size of the program might be too small to stem the tide. What's the tide?
TheÂ final article, from the Christian Science Monitor, talks about the tide of foreclosures. Shilling stated that there could be as much as 500,000 foreclosures in the shadow inventory. These are the foreclosures that banks simply have not moved on yet. Shilling also says that inventory is high with possibly 2 million over average.
The question is how will programs such as those cited in the first two articles affect what is going on as cited in the third article? What do you think?