The first wave of foreclosure is slowing down, at last. Does this mean that we are out of the woods as far as foreclosures are concerned? Well, not quite, and here is why: there are still a massive amount of REO’s piled up on the Banks’ books, which are not listed on the market as of yet, and will slowly come out, however, those bank owned properties (REO’s) are increasingly being sold in massive amounts to hedge funds of all sorts, which in terms, means that REO Brokers will disappear as fast as travel agencies did 15 years ago.
But there will be a second foreclosure wave within 2 years or so, this one will likely be larger than the last one, and caused but a steep rise in interest rates pushed up by the FED to try keeping the inflation under control. So, yes, the market is going up, but it is just stepping back to jump further backwards.