According to new research, the 2.1 million homes with delinquent mortgages or foreclosure status will take more than eight years to clear due to the slow pace of foreclosure sales. Currently, there are about 1.9 million houses with payments 90 days overdue or in foreclosure.
The market is not expected to recover quickly either, with backlogs pointing to the fact that the collapse in the real estate market affects housing prices and will do so for many years. For some states, it could take decades, according to data from LPS Applied Analytics. In New Jersey and New York, new rules from the courts mean it could take more than 50 years for lenders to get through homes in the backlog.
