As Lenders Hold Homes in Foreclosure, Sales Are Hurt

This New York Times article explores the issue of big banks holding large inventories of foreclosed homes and the impact this is having on the housing slump and economic recovery. The REO inventory is now almost twice as large as it was in 2007 and has surpassed 872,000 homes. Experts fear that this issue will continue to depress home values and decrease sales. They also believe it will take about three years to clear the backlog. The article discusses the impact this is having on banks as well as on housing markets.