Here’s a bleak update on the housing crisis:
Millions of homeowners are trapped in a bizarre real estate limbo, living in houses but no longer paying for them, waiting and wondering if someone will help them – or throw them out.
The article states that about 3.5 million loans are in this situation.
The limbo phenomenon is a radical departure from previous real estate crashes, when there were far fewer troubled loans and banks moved speedily on those who fell behind on payments. Now many lenders simply can’t keep up, and others appear reluctant to flood a weakened market with foreclosed homes.