foreclosureAccording to new data from RealtyTrac, 24% of all U.S. properties sold in the second quarter were foreclosed homes.

Banks will foreclose on about 1.2 million homes this year, compared with 1 million last year and just 100,000 in 2005, Reuters reported.

Foreclosed houses sold at an average discount of more than 26% versus non foreclosed homes.

At this rate, it will take three years for the market to work through the glut of distressed properties.

"This is the kind of volume of activity that we need to see for the market to heal," RealtyTrac senior vice president Rick Sharga told Reuters.

"Our projections have been that we will get through the distressed inventory largely by the end of 2013, and these kinds of numbers are on target to get us there," he said.

Nevada was among the worst-hit states, with foreclosed homes accounting for about 56% of all sales.

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Bearmaul

See, Obama is better than Bush and this article proves it, people are losing their homes 12 times greater rate than when Bush was president, sure people shouldn't have bought homes they couldn't afford but who can afford a home when you can't find a job. Double the unemployment, 12 times the number of people becoming homeless, yes Obama is doing a great job.............

September 30 2010 at 2:30 PM Report abuse rate up rate down Reply
nicklasjackson

If banks need to work through their glut of distressed properties, maybe they shouldn't give mortgages to people who can't afford to pay them back? These mortgages, which got us into this meltdown, are still being giving out. Here's a story about a man who just recently got a mortgage he will not be able to pay back: http://onthefrontlinesofamericanswarwithdebt.wordpress.com/2010/09/08/know-what-you-cant-afford-3/

September 30 2010 at 10:14 AM Report abuse rate up rate down Reply
marine1942

All of this--we are out of this in 3 years--is based upon no more foreclosures. Does anyone believe this ?? Another great " feel good " article but nothing in depth.

September 30 2010 at 9:06 AM Report abuse +2 rate up rate down Reply