Standard and Poors reports that it will take at least 3 years for the REO Back log to clear out.

With mortgages continuing to fail at a faster rate than REOs (Bank owned real estate) are being sold, we're heading into a serious back log of properties well into the next few years as well as diminishing home prices.

With the continued under performance of the Home Affordable Modification Program, home prices will continue to go down well into the end of 2010.

Bad news all around.

Homeowners need continued help with Loan Modifications and be well informed and educated as to its use so Loan Modifications don't simply turn into forestalling the inevitable.

Real Estate Investors will also need to watch how they buy. Investors don't want to overextend their purchasing not knowing which way prices will go.

A nice mix of wholesaling (limited risk while earning a nice income) as well as buying at a sizeable discount can help limit risk as well as get you in on a buyer's market that won't be seen for years to come.


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