About 8%, or 4.2 million homes, are are three months past due or in some stage of foreclosure, according to Moody’s. About a third of sales of existing homes in the US come from foreclosed homes.
Mike Lawson believes this is a real estate market that is dominated by the sale of foreclosed homes; in some cases 30%-40% of the home sales. If the foreclosure process is suspended or halted, Mike thinks it will upset the clearing of inventory overhang of distressed homes.
He is an interest rate and real estate analyst with Weiss Research. Mike is also the associate editor of the company’s monthly publication, Safe Money Report, as well as a regular contributor to its daily newsletter, Money and Markets.
Mike covers a number of financial topics during the interview. Overall, however, he is less optimistic about a quick recovery of the US Economy. In his view, the remedy for our ailing economy is “the passage of time.”
Listen to this thought-provoking interview below: