This is the main counterpoint to the seemingly prevailing narrative of a recovering housing industry. As time goes by, the backlog of foreclosures continues to grow, adding credence to the 'overhang' theory.
Foreclosure 'Overhang' Will Cause Home-Price Decline, S&P Says(Bloomberg) -- Foreclosures will cause U.S. home prices to fall this year as lenders buck federal pressure to modify loans, according to a report from Standard & Poor's Financial Services.
"The mortgage crisis may be far from over," Diane Westerback, a managing director at the New York-based firm, wrote in today's report. "The overhang of homes heading toward liquidation suggests more delinquencies and lower home prices are to come."
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